Overriding Interests – ‘Actual Occupation' Revisited

In Pennistone Holdings Ltd v Rock Ferry Waterfront Trust [2021] EWCA Civ 1029, the Court of Appeal revisited the question of when land is in 'actual occupation' for the purpose establishing an overriding interest under paragraph 2 of Schedule 1 to the Land Registration Act 2002.

A Mr Denis Murphy had owned land - 'the old Vestor Oil site' - at Birkenhead on the Mersey estuary which had development value but was subject to potential expensive remediation costs. The land was registered. Mr Murphy initially held the land via a Seychelles company, then a Manx company Toluca Ltd and then in 2015 an English company Pennistone. But although the site had been transferred by Toluca to Pennistone Mr Murphy instructed his solicitors not to register Pennistone's title since he wanted to avoid the potential remediation costs. Thus Toluca remained the registered proprietor.