City of London Building Society v Flegg [1988]

Two trustees held land upon trust for sale for four
tenants in common.
In breach of trust, trustees mortgaged land to a
Building Society.
Building Society unaware of this breach of trust.
Two of tenants claimed BS’s legal charge was subject
to their overriding interest – s70(1)(g) protected persons in actual
House of Lords held both Settled Land Act 1925 and LPA
1925 provide that property may be conveyed unencumbered by trust provisions.
s70 cannot have been intended to frustrate this.
Under both Acts the only protection for beneficiaries is
that capital money must be paid to at least two trustees or a trust
This condition satisfied in present case.  
Williams can be distinguished on basis that there
was only one trustee in that case.
Hence tenants could not be protected by an overriding
interest even though they occupied house.
Tenants’ rights however would be transferred to the
equity of redemption.