We were customers with BOS and as we were in arrears we were handed over to START Mortgages - my queries are many but the first one is this - in light of the Laffoy judgement were the BOS legally entitled, as they had ceased being a bank in Ireland, to hand over our mortgage to START in October 2015?
Friday 27 March 2015 20.00
A Supreme Court judgement may make it more difficult for Bank of Scotland Ireland to take possession of family homes which are in mortgage arrears, it has emerged.
In her judgement, issued last week, Ms Justice Laffoy said it had "the potential to be of significant importance" for people with mortgages taken out with the bank.
At the end of 2010 Bank of Scotland Ireland was merged with its British parent Bank of Scotland using a European Law Merger procedure.
The Irish company ceased to exist as it pulled out of the Irish banking market.
Ms Justice Laffoy found that while the bank's assets were transferred the securities, or mortgages, remained registered to the old Irish company which has now ceased to exist.
The development means that a huge part of the portfolio of mortgages could be defective, according to barrister Vincent P Martin.
In order for the Bank of Scotland to have the power to repossess a property the mortgage will have to be registered to Bank of Scotland.
However, as the law stands only the registered owner of the mortgage can transfer the mortgage, and the registered owner no longer exists.
Bank of Scotland recently sold 4,000 of its mortgages to US private equity company Loan Star which may further complicate matters.
It is understood that Ross Maguire SC of New Beginning led the case.
However one market source the judgement would only have narrow implication for the bank.
The source said the judgement would only create difficulties in cases where the bank would have to rely on its statutory powers.
The source said the bank would be able to resolve the difficulties by re-registering its security over the properties.
http://www.askaboutmoney.com/
Friday 27 March 2015 20.00
A Supreme Court judgement may make it more difficult for Bank of Scotland Ireland to take possession of family homes which are in mortgage arrears, it has emerged.
In her judgement, issued last week, Ms Justice Laffoy said it had "the potential to be of significant importance" for people with mortgages taken out with the bank.
At the end of 2010 Bank of Scotland Ireland was merged with its British parent Bank of Scotland using a European Law Merger procedure.
The Irish company ceased to exist as it pulled out of the Irish banking market.
Ms Justice Laffoy found that while the bank's assets were transferred the securities, or mortgages, remained registered to the old Irish company which has now ceased to exist.
The development means that a huge part of the portfolio of mortgages could be defective, according to barrister Vincent P Martin.
In order for the Bank of Scotland to have the power to repossess a property the mortgage will have to be registered to Bank of Scotland.
However, as the law stands only the registered owner of the mortgage can transfer the mortgage, and the registered owner no longer exists.
Bank of Scotland recently sold 4,000 of its mortgages to US private equity company Loan Star which may further complicate matters.
It is understood that Ross Maguire SC of New Beginning led the case.
However one market source the judgement would only have narrow implication for the bank.
The source said the judgement would only create difficulties in cases where the bank would have to rely on its statutory powers.
The source said the bank would be able to resolve the difficulties by re-registering its security over the properties.
http://www.askaboutmoney.com/