One of my clients is trying to buy a repossessed property. The estate agents told him that the lenders did not have to accept the highest offer. Is this correct? I am asking this to help people whose properties have been repossessed rather than my client. My own home was repossessed seven years ago.

-- Stuart Jones (stuart@3ca3ca.fsnet.co.uk), November 09, 2000

Answers

Hi Stuart,

The following is an extract from the Council of Mortgage Lenders Mortgage Code Statement of Practice.

"Sale of Properties in Possession

18. When selling properties which have been taken into possession lenders are under a duty to obtain the best price reasonably obtainable."

Following the Skipton Building Society -v- Stott case in the Court of Appeal, lenders should now be aware that they must ensure that when an Estate Agent markets a repossessed property, it is marketed in the same way that they market the other properties they handle.

It would be interesting to find out which lender/estate agents are involved. Please feel free to email me privately if you would prefer.

Regards,

-- Tony Hayter (Tony@Hayter.com), November 09, 2000.

May I ask if the Skipton case was after 1992 and if so, is there a copy anywhere on the Net I might read? The estate agents who sold my property from under me told me that they were instructed to take anything they could get, as quickly as possible. Thanks.

-- Too scared to say (iwasduped@yahoo.com), November 09, 2000.

The case was heard in the Court of Appeal on the 10th December 1999

Here's the link to the Guardian newpaper's coverage of the case:

www.guardianunlimited.co.uk/jobs_and_money/story/0,3605,335706,00.html

and here's the link to an analysis of the case from a barrister that was involved with it:

www.farleys.com/online/news_lenders.html

Regards, Tony.

-- Tony Hayter (Tony@Hayter.com), November 09, 2000.

Thank you. Interesting reading which wholly supports my case against the MC.

-- Too scared to say (iwasduped@yahoo.com), November 09, 2000.

If you go about a third of way down the Q&A board, you'll find a previous thread on this (Skipton v Stott) called 'Mortgage shortfall and the Appeal Court', which may be of interest. Best of luck.

-- Eleanor Scott (eleanor.scott@btinternet.com), November 10, 2000.