Link Lending v Bustard [2010] EWCA Civ 424

Mrs. B suffered a severe psychiatric condition which meant that she spent periods of her life away from home in hospital. In 2004, she transferred the legal title of the property to someone else. Even after it was transferred, she continued to live there although she spent large times at the hospital. In 2007, she was detained at a residential care home. In 2008, the new proprietor refinanced the house to Link Lending and was unable to pay back the loan. Link Lending thus attempted to repossess the property. However, while she was detained, she came home regularly to visit the house, pick up her posts and some of her possessions were still at the house.

Held: The transfer was held to be done through undue influence. This means that whilst the title resided in the new owner, it was held on trust for Mrs. B and created proprietary interest. Although she was detained somewhere else, she never exhibited or stated anything other than a continuing intention to occupy and this was manifested not only by the presence of her clothes but by her regular visits to the property.

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