Mortgage Possession Proceedings under English Law. Legal Protections for Homeowners

Seminar paper from the year 2024 in the subject Law - Comparative Legal Systems, Comparative Law, grade: A, Free University of Berlin (Business Administration and Management), course: Business Law, language: English, abstract: This paper explores the legal framework surrounding mortgage possession proceedings, with a focus on Zara, a sole homeowner facing significant arrears after leaving her job to care for her ill brother. Zara's lender, Oak Bank, is initiating possession proceedings, raising concerns about the potential sale of her house below market value to an employee. The paper examines Oak Bank's grounds for possession under the Law of Property Act 1925 and the Administration of Justice Act 1970. It highlights possible defenses Zara can employ, including demonstrating her ability to pay arrears and invoking her right to relief under the Administration of Justice Acts. Additionally, it addresses the mortgagee's duty to act in good faith, achieve the best sale price, and avoid conflicts of interest. The paper concludes by outlining the steps Zara can take to ensure a fair and transparent sale process, safeguarding her interests.