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.