Tom Poole examines the wide-ranging implications of Horsham Properties
The number of properties repossessed by mortgagees in the UK rose by 48% in 2008. According to statistics issued by the Ministry of Justice (MoJ), there were 28,658 mortgage possession orders made in the second quarter of 2008, 24% higher than in the second quarter of 2007. Against this stark backdrop came the decision in October 2008 in Horsham Properties Group Ltd v Clark & Others [2008] EWHC 2327 (Ch) [2008] All ER (D) 58 (Oct).
Horsham Properties
The facts of the case are straightforward. Paul Clark and Carol Beech (the defendants) owned a house in Chatham, Kent (the property). In 2004, they entered into a mortgage with GMAC (the mortgage). Th e defendants fell into arrears with their mortgage payments and in April 2006 GMAC appointed receivers over the property. In September 2006, the receivers sold the property at auction. Th e purchaser was Coastal Estates Ltd (Coastal). The property was transferred by the receivers as agents for GMAC and on the same day Coastal transferred the property to Horsham Properties Group Ltd (Horsham) who then
