Sale and rent back – coming soon?

Word reaches us (via the Garden Court North website) of what appears to be a fascinating piece of litigation in the High Court (Leeds District Registry) concerning sale and rent back schemes (as to which, see our earlier piece, here). A number of former home-owners sold their homes (generally at a substantial discount) to sale and rent back companies who, in turn, (a) funded the purchase with a mortgage and (b) promised the former owners that they could remain living in the property (on terms, I presume). The sale and rent back companies defaulted on their mortgages and the lenders have sought possession. The argument, I presume, is that the mortgage is subject to the rights of the former owners to remain in occupation.

I suspect that this is being set up to go further than the High Court. James Stark, a friend of this blog, is acting (led by Jonathan Small QC, who I doubt reads this blog) for the former owners. The trial started on October 19. James – any more information? Any chance we could read the skeleton arguments?

Keep an eye out for this – something tells me it’ll be quite important.

About J

J is a barrister in London. He loves service charges and all things leasehold law related. He also likes beating rogue landlords and mortgage companies.
Posted in Housing law - All, Leasehold and shared ownership, Mortgage possession, Possession, Trusts and Estoppel and tagged .

5 Comments

  1. Now that judgement has been handed down, with permission granted for appeal, are there any comments from legal experts that can help a lay person such as myself understand the reasoning behind the judgement.

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