North East Property Buyers – Sale and leaseback test case (Court of Appeal)

1 February 2012

The Court of Appeal gave its judgment in Cook v The Mortgage Business Plc [2012] EWCA Civ 17 on 24th January 2012, dismissing the appeal against the earlier High Court decision (HHJ Behrens) in these test cases on sale and rent back.

The proceedings concern whether sale and leaseback arrangements between tenants who had previously owned their homes and an organisation known as North East Property Buyers bind the mortgage lenders to North East Property Buyers as overriding interests under the Land Registration Act 2002. By the time of the appeal there were four test cases extant and around 90 cases stayed. There were also cases stayed in other parts of the country in relation to similar schemes where mortgagees are attempting to recover possession from tenants after the borrowers have defaulted.

For an analysis of this latest decision and its relevance to equity release schemes and the existing caselaw of Abbey National BS v Cann [1991] 1 AC 56, see commentary on Nearly Legal.

James Stark of Garden Court North Chambers, instructed by David Gray & Co Solicitors and Clark Willis Solicitors, led by Jonathan Small QC of Falcon Court Chambers, London, represented all of the test case tenants for the appeal.

Chambers news

Chambers news

The Legal 500 Bar Awards 2025: Garden Court North Chambers nominated for Set Outside London of the Year

Garden Court North Chambers has been shortlisted as Set Outside London of the Year for The Legal 500 Bar Awards 2025.

Chambers news

167 cross-party MPs and Lords sign letter calling for an undiluted Hillsborough Law

138 MPs and 29 Lords have signed a letter calling for the UK Government to deliver a full and undiluted ‘Hillsborough Law’.

Chambers news

Covid-19 Inquiry: Module 6 public hearings begin on adult social care sector

On 30 June 2025, public hearings will begin for Module 6 of the Covid-19 Inquiry, investigating the pandemic’s impact on adult social care.

Chambers news

Garden Court North’s protest rights team to host ‘Understanding Anti-Zionism’ webinar with Professor Avi Shlaim

On 7 July, Garden Court North's protest rights team will host an exclusive webinar on 'Understanding Anti-Zionism' alongside Professor Avi Shlaim.

Sign up to our mailing list

Our mailing list is dedicated to professionals with an interest in our work.

Sign up