Target Home Loans v Clothier [1994]

Facts

  • A mortgagor defaulted on payments of a £225,000 loan secured against their land
  • The arrears amounted to £64,579
  • The mortgagee wished to take possession and the mortgagor wished to sell on the basis of a £450,000 offer received

Issue

  • Could the mortgagor have possession postponed for 3 months under section 36 of the Administration of Justice Act 1970 to allow the sale to complete?

Decision

  • Yes

Reasoning

  • Although the was no evidence that the mortgagor would be able to pay the mortgage loan arrears, the prospects of an early sale were best served by postponing possession
RELATED CASE  Swift Investments v Combined English Stores Group [1989]

Posted in Land Law Revision Notes.

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