header-logo header-logo

Home Login E-newsletter About us
25 September 2015 / Sarah Greer
Issue: 7669 / Categories: Features , Property
printer mail-detail

As safe as houses?

© Copyright LexisNexis 2026. All Rights Reserved.
nlj_7669_sarah-greer

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

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Read All
Sponsored by
Payne Hicks Beach—Flora Hussey

Payne Hicks Beach—Flora Hussey

Private client department announces partner hire

Blake Morgan—Daniela Smith & Lee Fisher

Blake Morgan—Daniela Smith & Lee Fisher

Firm appoints first joint heads of Wales office

Ogier—Heidi Sandy & Farrah Sbaiti

Ogier—Heidi Sandy & Farrah Sbaiti

Global dispute resolution team promotes two partners in Guernsey and Cayman Islands

NEWS
Read All
NLJ this week: ‘Joe Donor’ ruling exposes dangers of unregulated conception
The High Court’s refusal to recognise a prolific sperm donor as a child’s legal parent has highlighted the risks of informal conception arrangements, according to Liam Hurren, associate at Kingsley Napley, in NLJ this week
NLJ this week: CILEX warns Mazur ruling must spark reform
The Court of Appeal’s decision in Mazur may have settled questions around litigation supervision, but the profession should not simply ‘move on’, argues Jennifer Coupland, CEO of CILEX, in this week's NLJ
NLJ this week: Conditional job offers carry hidden risks for employers
A simple phrase like ‘subject to references’ may not protect employers as much as they think. Writing in NLJ this week, Ian Smith, barrister and emeritus professor of employment law at UEA, analyses recent employment cases showing how conditional job offers can still create binding contracts
NLJ this week: Diamond rings and broken promises

An engagement ring may symbolise romance, but the courts remain decidedly practical about who keeps it after a split, writes Mark Pawlowski, barrister and professor emeritus of property law at the University of Greenwich, in this week's NLJ

NLJ this week: The battle over medical report fees intensifies
Medical reporting organisation fees have become ‘the final battleground’ in modern costs litigation, says Kris Kilsby, costs lawyer at Peak Costs and council member of the Association of Costs Lawyers, in this week's NLJ
Copyright © 2026 LexisNexis
back-to-top-scroll