<-- Twitter Summary card images-->Ignoring legal advice proves costly in mortgage loan | Ignoring legal advice proves costly in mortgage loan | Articles | Knowledge Hub | B P Collins LLP Solicitors
Knowledge Hub | Articles

24 March 2016

Ignoring legal advice proves costly in mortgage loan

When a woman ignored legal advice and lent over £600,000 to her uncle without taking proper steps to protect herself, the outcome was always likely to be regrettable.

While the transaction seemed straightforward – the advancing of a mortgage on his property through a company she had set up, to replace his existing mortgage – the outcome was not as predicted. The reason was that the property was subject to a Crown Court restraint order, issued under the Proceeds of Crime Act 2002. The order prevented the registration of the charge without the consent of the Director of the Serious Fraud Office or a further court order.

The mortgage could not therefore be registered, with the result that the company's loan was unsecured.

The company accused the solicitor involved of negligence, but there was copious evidence that the woman had ignored specific advice not to go ahead with the transaction.

Incredibly, she had also failed to have a valuation done on the property against which the loan was made.

Blood may be thicker than water, but failing to take basic precautions that would minimise risk is never sensible. It can often be difficult for family members to resist persuasion in circumstances like these. We can help you ensure that where pressure is being put on you to advance loans to family or friends, your interests are properly protected.

For advice, contact rhe property team. Call 01753 278692 or email resproperty@bpcollins.co.uk.

Stay in touch

Phone: +44 (0) 1753 889995

Email: enquiries@bpcollins.co.uk

About cookies on our website

Our Site uses cookies to improve your experience of certain areas of the Site and to allow the use of specific functionality, such as social media page sharing. You may delete and block all cookies from this Site, but as a result, parts of the Site may not work as intended.

To find out more about our cookies policy, please visit here.

Click on the button below to accept the use of cookies on this Site (this will prevent the dialogue box from appearing on future visits).