Can qualifying tenants prevent incumbrances created after an unlawful disposal from binding them (Donovan v Prescott Place)?

Article summary

Property Disputes analysis: A block of flats was transferred to a buyer without the seller first offering to sell the flats to the qualifying tenants as required by section 1 of the Landlord and Tenant Act 1987 (LTA 1987). The qualifying tenants therefore obtained a court order under LTA 1987, s 19(1) requiring the buyer to transfer the property to their nominee company. After the transfer to the buyer but before the LTA 1987, s 19(1) order was made, the buyer executed a declaration of trust declaring that he held the freehold of the property on trust for the appellant. After the LTA 1987, s 19(1) order was made, the buyer granted equitable leases of two newly created flats to the appellant. The Court of Appeal was asked to consider complex questions affecting whether the ultimate transfer from the buyer to the tenants’ nominee would be subject to the appellant’s beneficial interest in the...