Litigation involving shared appreciation mortgages, mortgages which were offered for a period in 1997 and 1998 by certain lenders (Bank of Scotland (‘BoS’) and Barclays Bank) which are unconventional in relation to their interest payments and redemption terms. For present purposes they can be grouped into two categories which share a common feature. The common feature is that the loans are not repayable at any fixed time. They are repayable in the event of a sale, or the death of the mortgagor. On redemption the mortgagor pays the principal outstanding and a specified percentage of any increase in value of the property over the purchase costs. That percentage is a multiple of the loan to value ratio. The multiple varies depending on the category into which the mortgage falls. One category has no interest charge. In those cases the multiple is usually 3 times loan to value ratio. The other category has a fixed interest charge, and in this case the multiple is 1.
Judges:
Mann J
Citations:
[2010] EWHC 203 (Ch)
Links:
Jurisdiction:
England and Wales
Banking
Updated: 14 August 2022; Ref: scu.396743