13 Feb, 2008
has been allowed to keep his home despite making no mortgage
payments for the past 15 years.
Djabar Babai of Heaton Mersey, Stockport has not made a mortgage
payment since 1993, but was declared bankrupt months later, say
national press reports.
Despite bankruptcy, Babai continued to live in his home - now worth
Babai's mortgage lender, NatWest made a formal demand for payment,
but delayed repossession proceedings.
Last year the trustees of bankruptcy - acting on behalf of Babai's
other creditors - won a High Court ruling that NatWest could no
longer repossess the property because 12 years had elapsed so the
deadline for enforcing the mortgage had passed and Babai had
squatter's rights to continue living in his home.
NatWest appealed but last Friday Lord Justice Mummery ruled that
its right to take possession of the property was "barred" under the
1980 Limitation Act.
Justin Fenwick QC representing NatWest said that banks could now be
forced to issue possession proceedings where they might not
otherwise have done so in order to protect their