Leigh v Lloyd
| Jurisdiction | England & Wales |
| Judgment Date | 25 July 1865 |
| Date | 25 July 1865 |
| Court | High Court of Chancery |
English Reports Citation: 46 E.R. 403
BEFORE THE LORD CHANCELLOR LORD CRANWORTH.
S. C. 34 L. J. Ch. 646; 12 L. T. 813; 13 W. R. 1054.
. LEIGH V. LLOYD 403 [330] leigh v. lloyd. Before the Lord Chancellor Lord Cranworth. July 20, 21, 25, 1865. [S. C. 34 L. J. Ch. 646; 12 L. T. 813; 13 W. R. 1054.] A member of a building society received an advance from the funds of the society anil deposited the lease of his land with the trustees as security for repayment, at the same time signing an agreement to execute a mortgage. He afterwards executed a mortgage to the trustees containing a power of sale, under which the trustees sold the property for the remainder of the term to the Defendants. Previously, however, to the execution of the mortgage the mortgagor assigned the premises, " subject to the mortgage to the building society," to the Defendants for valuable consideration, who thereby became possessed of the legal estate. Held, that the Defendants must be taken to have had notice that the mortgage would contain a power of sale, and they were declared to be trustees of the property for the Plaintiff'. By an indenture, dated the 18th October 1847, the Earl of Mornington demised to John Wood nine cottages at Woodford, in Essex, for a term of ninety-nine years from the 29th September 1847, at a yearly rent of 13. At that time John Wood was a member of the Second Walthamstow Building Society and the owner of a share therein No. 58. Under the rules of the society he was entitled to an advance of 200, and he accordingly applied for the advance of that sum on the security of his lease. On the 1st May 1849 Wood deposited the lease with the trustees of the society, and at the same time signed the following memorandum :- " I, John Wood, of &c., one of the members of the Second Walthamstow Building Society, in consideration of 200, advanced to me out of the funds of the above society on an appropriation made on the share No. 58, do hereby deposit with the trustees of the said society the deeds of the lease of certain property belonging to the Earl of Mornington, and situate at the back of the Castle Inn, in the parish of Woodford, as a collateral security, and I do hereby engage to execute a mortgage [331] deed to the said society for the above amount when called upon by the committee and trustees so to do. "Signed this 1st day of May 1849. john wood." The sum of 200 was advanced to Wood by instalments, 50 being paid on the 2d June 1849, and the rest by three instalments of 50 each on the 12th June, the 20th July, and the 26th September 1849. By an indenture dated the 2d June 1849, made between John Wood of the first part, Richard Batley the elder of the second part, and the Defendants Henry Thomas Lloyd and Richard Batley the younger of the third part, in consideration of the sum of 50 previously lent by R. Batley the elder to Wood, and of the further sum of 100 paid to Wood on the execution of the deed, Wood assigned all the premises comprised in the indenture of lease to the Defendants for the residue of the term, upon trust for Wood during his life, and after his death for Hannah the wife of R. Batley the elder, and after the death of the survivor upon certain trusts for the benefit of the children of R. Batley the elder and his wife. The assignment was made expressly " subject to a certain mortgage of the said leasehold premises by the said J. Wood to the Walthamstow Building Society for securing the...
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