UK Landlord Forum / Life

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A failed businessman who has paid nothing towards a mortgage on his home for more than 15 years, had the debt wiped out by senior judges.

Djabar Babai was told he had effectively acquired "squatter's rights" over his £250,000 detached home, as his dispute with his mortgage lender has dragged on for so long.

But although the judgment may be good news for the 62-year-old, there were warnings that homeowners who fall behind on payments could face swifter repossession action as a result.

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Iranian-born Mr Babai took out a second mortgage with NatWest against his home in Heaton Mersey, near Stockport, in 1989, to cover business debts. By 1992 he and his wife Zinat had fallen behind on payments by almost £62,000.  The bank issued a formal demand - but it did not start repossession proceedings, the Court of Appeal, in London was told.

After negotiations, the father-of-two made a payment of £40 in January 1993. However, later that year he was declared bankrupt, and no further instalments were paid. By 2006, the debt had reached £165,000, and he faced losing the house.

But last year, trustees of bankruptcy, acting for his creditors, won a ruling at the High Court that NatWest's charge on the property had ceased.

A lender has 12 years in which to enforce a mortgage, and that deadline had passed, meaning Mr Babai had effectively acquired "squatter's rights" to stay, the court heard.

Yesterday, a panel of senior judges rejected NatWest's appeal against the ruling, even though its barrister argued it would affect many other borrowers.

Full Article here


Excuse me, WHAT? It's not quite clear why, but why the fuck didn't the lender act quicker? 15 years...what a joke.

In this case, both the lender and the squatter annoyed me.

 
lol

that's insane. I'm sure mr. babai is a happy man

I hope someone at the bank got their arse kicked for this! You couldnt make it up could you?

To be honest who wouls admit to owning it in the first place let alone admit to lending on it, stone cladding, please.
There we go, people are great aint they.

ha, good call.

I didn't even notice the stone cladding.