Harman & Co Solicitor Nominee Company v Secureland Mortgage Investments Nominees Ltd - [1992] 2 NZLR 416

Property law — Mortgage — Lease — Mortgage of freehold property on which block of four flats erected — Subsequent leasehold title to flat owners by way of cross-leases — Flat owners also registered as proprietors of undivided one-quarter share in freehold — Flat owners giving mortgage over both estates — Mortgage registered as first mortgage of leasehold and second mortgage of freehold estate — Priority of mortgages — Whether first mortgagee of freehold estate consented to creation of leasehold interest — Whether written consent required — Effect of such consent — First mortgagee of freehold wound up — Sale of freehold by liquidator — Entitlement to proceeds of sale — Land Transfer Act 1952, ss 105, 116 and 119.

Trusts and trustees — Constructive trust — Mortgage of freehold property on which block of four flats erected — Subsequent leasehold title to flat owners by way of cross-leases — Flat owners also registered as proprietors of undivided one-quarter share in freehold — Flat owners giving mortgage over both estates — Mortgage registered as first mortgage of leasehold and second mortgage of freehold estate — First mortgagee of freehold wound up — Sale of freehold by liquidator — Entitlement to proceeds of sale — Whether proceeds impressed with constructive trust in favour of freehold mortgagee.