Tom Poole examines the wide-ranging implications of Horsham Properties
The number of properties repossessed by mortgagees in the UK rose by 48% in 2008. According to statistics issued by the Ministry of Justice (MoJ), there were 28,658 mortgage possession orders made in the second quarter of 2008, 24% higher than in the second quarter of 2007. Against this stark backdrop came the decision in October 2008 in Horsham Properties Group Ltd v Clark & Others [2008] EWHC 2327 (Ch) [2008] All ER (D) 58 (Oct).
Horsham Properties
The facts of the case are straightforward. Paul Clark and Carol Beech (the defendants) owned a house in Chatham, Kent (the property). In 2004, they entered into a mortgage with GMAC (the mortgage). Th e defendants fell into arrears with their mortgage payments and in April 2006 GMAC appointed receivers over the property. In September 2006, the receivers sold the property at auction. Th e purchaser was Coastal Estates Ltd (Coastal). The property was transferred by the receivers as agents for GMAC and on the same day Coastal
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