Scott v Southern Pacific Mortgage Limited

22 October 2014

Judgment was handed down on today in Scott v Southern Pacific Mortgages and others [2014] UKSC 52. James Stark of Garden Court North Chambers led by Bryan McGuire QC, instructed by David Gray Solicitors, represented Mrs Scott.

Mrs Scott sold her home on a sale and leaseback to the nominee of an organisation named UK Property Buyers at a considerable undervalue and in return for which she had a significant deduction made from the proceeds of sale in return for promises that she could stay as a tenant at a low rent for life and that her son could succeed to her tenancy .

Unknown to her the purchase was funded by a self-certificated Buy to Let mortgage and when UK Property Buyers, together with its associated organisation North East Property Buyers, stopped paying the sums due under the mortgage Southern Pacific Mortgage Limited sought possession.

The Supreme Court considered whether Mrs Scott obtained an equitable interest binding under paragraph 2 of Schedule 3 to the Land Registration Act 2002 upon the mortgagees at the time of the contract of sale and whether Abbey National Building Society v Cann [1991] 1 AC 56 applied to this situation where it was argued that the sale and leaseback are one transaction such that the mortgagee at no time received a charge over a freehold already subject to the lease.

The appeal was dismissed.

Chambers news

Chambers news

Rosalind Burgin wins £43,000 in compensation and costs in unlawful eviction case

There was recent success for Rosalind Burgin who won more than £43,000 in compensation and costs in an unlawful eviction case. The claimant came home...

Chambers news

Join us!

Due to significant demand across our core practice areas and our programme of strategic growth, Garden Court North Chambers is recruiting across all core practice...

Chambers news

Lily Lewis chairs human rights and legal aid careers event

A sold-out evening exploring human rights and legal aid careers was held earlier this week at the University of Manchester in association with Garden Court...

Chambers news

Liam McGenity: Inquest concludes neglect contributed to self-inflicted death

This article is taken from the original report written by Farleys, which can be found here. The inquest into the death of Liam McGenity took place between...

Sign up to our mailing list

Our mailing list is dedicated to professionals with an interest in our work.

Sign up