Jump to content
House Price Crash Forum

Recommended Posts

A regular talking point here is that a mortgagor cannot simply walk away from a property which is in negative equity. They are liable to be pursued by the lender for any shortfall by the lender.

There is a 12 year limitations period but a recent case has extended this where the debt is acknowledged during that 12 year period:

Bradford & Bingley plc v Ashcroft

So, because Ashcroft acknowledged the debt and made some partial payments, the clock was reset and B&B were able to pursue him for the mortgage shortfall after 16 years.

There is quite a wide scope of what counts as acknowledgement of the debt so I can see a lot of people being caught out by this.

Link to post
Share on other sites

A regular talking point here is that a mortgagor cannot simply walk away from a property which is in negative equity. They are liable to be pursued by the lender for any shortfall by the lender.

There is a 12 year limitations period but a recent case has extended this where the debt is acknowledged during that 12 year period:

Bradford & Bingley plc v Ashcroft

So, because Ashcroft acknowledged the debt and made some partial payments, the clock was reset and B&B were able to pursue him for the mortgage shortfall after 16 years.

There is quite a wide scope of what counts as acknowledgement of the debt so I can see a lot of people being caught out by this.

This isn't new law. It has always been the case.

tim

Link to post
Share on other sites
  • 2 weeks later...

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    No registered users viewing this page.

  • 433 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.