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As safe as houses?

25 September 2015 / Sarah Greer
Issue: 7669 / Categories: Features , Property
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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

Birketts—trainee cohort

Birketts—trainee cohort

Firm welcomes new cohort of 29 trainee solicitors for 2025

Keoghs—four appointments

Keoghs—four appointments

Four partner hires expand legal expertise in Scotland and Northern Ireland

Brabners—Ben Lamb

Brabners—Ben Lamb

Real estate team in Yorkshire welcomes new partner

NEWS
Robert Taylor of 360 Law Services warns in this week's NLJ that adoption of artificial intelligence (AI) risks entrenching disadvantage for SME law firms, unless tools are tailored to their needs
From oligarchs to cosmetic clinics, strategic lawsuits against public participation (SLAPPs) target journalists, activists and ordinary citizens with intimidating legal tactics. Writing in NLJ this week, Sadie Whittam of Lancaster University explores the weaponisation of litigation to silence critics
Delays and dysfunction continue to mount in the county court, as revealed in a scathing Justice Committee report and under discussion this week by NLJ columnist Professor Dominic Regan of City Law School. Bulk claims—especially from private parking firms—are overwhelming the system, with 8,000 cases filed weekly
Writing in NLJ this week, Thomas Rothwell and Kavish Shah of Falcon Chambers unpack the surprise inclusion of a ban on upwards-only rent reviews in the English Devolution and Community Empowerment Bill
Charles Pigott of Mills & Reeve charts the turbulent progress of the Employment Rights Bill through the House of Lords, in this week's NLJ
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