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25 September 2015 / Sarah Greer
Issue: 7669 / Categories: Features , Property
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As safe as houses?

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Could an ancient legal principle help lenders in cases of mortgage fraud? Sarah Greer investigates

A recent Court of Appeal decision has invoked an old and infrequently used legal principle to provide lenders with a potentially useful means of avoiding being bound by an overriding interest in a case of mortgage fraud. Its implications for equally innocent beneficial owners, however, may be less welcome.

Credit & Mercantile Plc v Kaymuu Ltd

In Credit & Mercantile Plc v Kaymuu Ltd [2015] EWCA Civ 655, [2015] All ER (D) 64 (Jul), W relied upon a long-time friend and business acquaintance, SM, to purchase a family home for W and his partner out of the proceeds of a joint business venture. Their previous business and financial arrangements were described as “loose” and informal. W trusted SM to the extent that he did not even see the contract for the purchase of the property, “Dalhanna”. Unknown to W, SM purchased Dalhanna through his own company, Kaymuu Ltd and subsequently, after W had moved into the property, obtained a mortgage

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MOVERS & SHAKERS

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Sponsored by
Forbes Solicitors—Stephen Barnfield

Forbes Solicitors—Stephen Barnfield

Regulatory team boosted by partner hire amid rising health and safety demand

Arc Pensions Law—Kris Weber

Arc Pensions Law—Kris Weber

Legal director promoted to partner at specialist pensions firm

Clarke Willmott—Jonathan Cree

Clarke Willmott—Jonathan Cree

Residential development capability expands with partner hire in Birmingham

NEWS
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NLJ this week: Mazur and more—inside the litigation frontline

From blockbuster judgments to procedural shake-ups, the courts are busy reshaping litigation practice. Writing in NLJ this week, Professor Dominic Regan of City Law School hails the Court of Appeal's 'exquisite judgment’ in Mazur restoring the role of supervised non-qualified staff, and highlights a ‘mammoth’ damages ruling likened to War and Peace, alongside guidance on medical reporting fees, where a pragmatic 25% uplift was imposed

NLJ this week: Social media bans for children spark legal dilemmas
Momentum is building behind proposals to restrict children’s access to social media—but the legal and practical challenges are formidable. In NLJ this week, Nick Smallwood of Mills & Reeve examines global moves, including Australia’s under-16 ban and the UK's consultation
NLJ this week: Leasehold reform risks creating ‘forgotten freeholders’
Reforms designed to rebalance landlord-tenant relations may instead penalise leaseholders themselves. In this week's NLJ, Mike Somekh of The Freehold Collective warns that the Leasehold and Freehold Reform Act 2024 risks creating an ‘underclass’ of resident-controlled freehold companies
NLJ this week: Court of Appeal clarifies when a claim truly begins
Timing is everything—and the Court of Appeal has delivered clarity on when proceedings are ‘brought’. In his latest 'Civil way' column for NLJ, Stephen Gold explains that a claim is issued for limitation purposes when the claim form is delivered to the court, even if fees are underpaid
NLJ this week: Split FDRs could ease pressure—and boost settlements
The traditional ‘single, intensive day’ of financial dispute resolution (FDR) may be due for a rethink. Writing in NLJ this week, Rachel Frost-Smith and Lauren Guiler of Birketts propose a ‘split FDR’ model, separating judicial evaluation from negotiation
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