TSB Bank v Camfield [1995]

Facts

  • A wife guaranteed her husband’s business debts by way of mortgage over their jointly owned home
  • The husband stated to his wife that the guarantee was limited to £15,000, when it was unlimited
  • £15,000 liability was upheld at first instance

Issue

  • Was the guarantee void, or could TSB claim possession of the house and obtain £15,000 from the wife?

Decision

  • Void

Reasoning

  • Unlike misrepresentation, there is no law that suggests a mortgagee can enforce only part of a security
RELATED CASE  Sainsbury’s Supermarkets v Olympia Homes [2006]

Posted in Land Law Revision Notes.

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