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Response to 12 years limitation

from M Amos (idgroms@hotmail.com)
Lynsey,

You probably haven't heard any more due to the Appeal Court case last July 'Bristol & West v Bartlett'. See info below:

The headline news is that the Court of Appeal has decided that s.20 of the Limitation Act 1980 is intended to provide a complete code for mortgages.

Issues as regards the application of ether s.5 or s.8 do not arise. The dicta of Auld LJ in Hopkinson v Tupper are dead and buried.

Therefore, in respect of capital, the bank has 12 years to commence proceedings after the cause of action accrued, usually when the entire mortgage debt became due on the monthly instalment payment being missed for the second or third month s.20(1) applies.

In respect of interest, it appears that the bank has 6 years from that date to recover interest s.20(5) applies.

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It looks, in my opinion, that the alleged shortfall is now statute barred, but please check this out with a solicitor, (preferably one with no vested interest, ie. doesn't carry out conveyancing) as the terms & conditions of the mortgage, I believe can also have an influence. The good thing is you haven't acknowledged the debt as you haven't been in contact with the lender, this could restart the limitation period. So not having contacted the lender may not have been as silly as you think. Well done and Good Luck.

Mark.

(posted 7740 days ago)

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