Scott v Southern Pacific Mortgage Limited

22 October 2014

Judgment was handed down on today in Scott v Southern Pacific Mortgages and others [2014] UKSC 52. James Stark of Garden Court North Chambers led by Bryan McGuire QC, instructed by David Gray Solicitors, represented Mrs Scott.

Mrs Scott sold her home on a sale and leaseback to the nominee of an organisation named UK Property Buyers at a considerable undervalue and in return for which she had a significant deduction made from the proceeds of sale in return for promises that she could stay as a tenant at a low rent for life and that her son could succeed to her tenancy .

Unknown to her the purchase was funded by a self-certificated Buy to Let mortgage and when UK Property Buyers, together with its associated organisation North East Property Buyers, stopped paying the sums due under the mortgage Southern Pacific Mortgage Limited sought possession.

The Supreme Court considered whether Mrs Scott obtained an equitable interest binding under paragraph 2 of Schedule 3 to the Land Registration Act 2002 upon the mortgagees at the time of the contract of sale and whether Abbey National Building Society v Cann [1991] 1 AC 56 applied to this situation where it was argued that the sale and leaseback are one transaction such that the mortgagee at no time received a charge over a freehold already subject to the lease.

The appeal was dismissed.

Chambers news

Chambers news

Dean Johnstone sentenced to life imprisonment with a minimum term of 17 years and six months after pleading guilty to murder

Dean Johnstone was sentenced to 17 years and six months’ imprisonment in Manchester Crown Court for the murder of Ms Karen Youdell.

Chambers news

Alexa Thompson secures possession claim dismissal to keep single mother and children in their home

Alexa Thompson secured the dismissal of a possession claim brought against her client in the Manchester Civil Justice Centre.

Chambers news

Rosalind Burgin and Bethany Currie’s clients acquitted at trial following protest action

Garden Court North’s Rosalind Burgin and Bethany Currie have secured acquittals for three protest defendants.

Chambers news

Ministry of Housing’s draft guidance on Awaab’s Law an “important and long-overdue step towards protecting tenants”

The UK Government’s Ministry of Housing published draft guidance for social landlords on Awaab’s Law, due to come into force in October 2025.

Sign up to our mailing list

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

Sign up