Midland Bank v Green [1981]

Father granted son 10-year option to purchase farm.
Son tenant of farm.
Option not registered under the Land Charges Act 1925.
[NB LCA 1925, now LCA 1972, concerns only unregistered land.
Gives protection to equitable interests by
registration.
Note land
charges register
, which applies to unregistered land, is different to charges register, which applies to
registered land]
Within the term the father, wishing to deprive son of
option, conveyed farm to his wife for £500 (farm value was £40000).
Son, hearing of this, registered option and purported
to exercise it.
Option binding on mother’s estate?
House of Lords held option void.
Mother was ‘purchaser of a legal estate for money or
money’s worth’ under LCA 1925.
No requirement of good faith was present in Act and
one cannot write it in from examples of contemporaneous acts [as Denning had
tried to do in CA].
Further nothing in Act to suggest that protection not
provided to purchaser who has provided only nominal consideration.
In any event, difficult to hold £500 to be nominal
consideration.