Amari Lifestyle Ltd (trading as Amari Super Cars) v Warnes

Subject Matter

DEBT — Security — Charge — Borrower entering agreement with lender intending to create charge over property to secure debt — Debt repayable only on sale of property from proceeds of sale — Agreement not giving rise to legal charge because not signed by co-owner of property — Whether creating valid equitable charge over borrower’s interest in property — Claimant subsequently obtaining final charging order against borrower’s interest in property to secure judgment debt — Claimant applying for order for sale of property — Whether order for sale futile because equitable charge exhausting borrower’s share of equity in property — Whether sale to be ordered — Trusts of Land and Appointment of Trustees Act 1996 (c 47), s 14

[2017] EWHC 1891 (Ch); [2018] Ch 161; [2018] 2 WLR 416; [2017] WLR(D) 607, Ch D