Response to The Mortgage Corporation Sold Property To Itself

Actually I think your solicitor may wish to think again about his advice. A sale of a property by the mortgagee in possession has to be an "arms length" transaction, if the security against the mortgage is to be subsequently enforced. What you describe is not an "arms length" sale and TMC are probably in breach of their duty of care to obtain the best possible sale price. Surely even Evershafts can see the red flags flying on this one? With regard to the legality of the sale to Cavendish, a corporate group can have a number of compnaies within it and sales between them are legitimate sales. For group accounts purposes, the balance sheets are consolidated, but you can break them down. The title to your property would have transferred to Cavendish upon the sale by TMC in possession. Yes, it's disgusting, but they are able to do what they did, if the Court agrees that that the price realised for the property was "reasonable".

[ Previous | Next ]