North East Property Buyers Court of Appeal decision
01/02/2012
The Court of Appeal gave its judgment on 24th January 2012 which dismissed the appeal against the earlier High Court decision (HHJ Behrens) in these test cases on sale and rent back.
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*** October 2012 UPDATE ***
Permission to appeal to the Supreme Court was granted in Cook v The Mortgage Business PLC et al [aka North East Property Buyers] â the appeal is not expected to be listed until June 2013 at earliest
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Cook v The Mortgage Business Plc [2012] EWCA Civ 17 judgment
The proceedings concern whether sale and leaseback arrangements between tenants who had previously owned their homes and an organisation known as North East Property Buyers bind the mortgage lenders to North East Property Buyers as overriding interests under the Land Registration Act 2002. By the time of the appeal there were 4 test cases extant and around 90 cases stayed. There were also cases stayed in other parts of the country in relation to similar schemes where mortgagees are attempting to recover possession from tenants after the borrowers have defaulted.
For an analysis of this latest decision and its relevance to equity release schemes and the existing caselaw of Abbey National BS v Cann [1991] 1 AC 56, see commentary on Nearly Legal (link below):
> 26/1/12 Equity Release Schemes: the CA view (Nearly Legal)
James Stark instructed by David Gray & Co Solicitors and Clark Willis Solicitors led by Jonathan Small QC of Falcon Court Chambers, London, represented all of the test case tenants for the appeal.
Background
> 20/12/10 Permission to appeal in sale and leaseback test cases
