Facts
- A mortgagee took possession of land which had recently acquired planning permission for 100 flats and 35 houses
- The mortgagee sold the land, with reference to the planning permission for the 35 houses, but not the 100 flats
Issue
- Was the mortgagee liable to the mortgagor?
Decision
- Yes
Reasoning
- A mortgagee is under a duty to take reasonable care to obtain the true market value of land
- This duty was breach where the mortgagee failed to make reference to the (very valuable) planning permission for 100 flats
