Test Cases on sale and leaseback
18/10/2010
HHJ Behrens sitting as a Deputy High Court Judge at Leeds will commence on Tuesday 19th October 2010 hearing a trial of preliminary issues in respect of nine test cases from Newcastle County Court in respect of whether sale and leaseback arrangements between nine 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.
North East Property Buyers either purchased the properties at a discount or required a substantial amount to be deducted and paid to them from the proceeds of sale. The tenants say they were made promises that they could stay as long as they wanted or for life and the vast majority of them had no idea that the purchases were being funded by mortgages.
North East Property Buyers have defaulted on the mortgages and the lenders have sought possession against the tenants.
James Stark
instructed by
David Gray & Co Solicitors
led by Jonathan Small QC of Falcon Court Chambers, London represents six of the test case tenants.
