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Mortgages.

The editor of this section of the site is Nigel Clayton of Kings Chambers, Leeds and Manchester. Nigel also maintains the specialist website dealing with mortgages at www.legalmortgage.co.uk





Mortgage lending

Regulated activities - consent order



Fortwell Finance Ltd v Halstead
[2018] EWCA Civ 676

Summary
  • A consent order in mortgage possession proceedings compromised any issue that the mortgage was unenforceable as having been entered into in contravention of the general prohibition in Section 19 FSMA 2000.
  • Neither was the consent order itself a regulated activity which had been entered into in breach of the general prohibition.

Facts

On 19 Aug 2013 FF granted H a 12-month loan of £2.36M secured by a first legal charge on residential property which comprised three flats in the course of conversion to a single residence. On the loan application form, H gave an overseas address. FF was not an ‘authorised person’ and regarded this as an unregulated loan for the purposes of the FSMA 2000 (Regulated Activities) Order 2001. A special condition of the loan was that the borrower shall not occupy the property as a dwelling.

Following default in repayment after 12 months, FF appointed receivers, and subsequently issued proceedings for possession which were initially compromised by a consent order for possession in 28 days. Following further default, FF obtained a warrant for possession. H applied to set aside the consent order and to suspend the warrant. A deputy district judge initially refused the stay, and an appeal against his decision was refused by a circuit judge. FF contracted to sell the property.

The court subsequently listed the applicatio ... THIS IS AN EXTRACT OF THE FULL TEXT. TO GET THE FULL TEXT, SEE BELOW

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