Dean represented a private individual mortgagee who had loaned £80,000 to a family friend, the loan having been secured by way of a charge against the mortgagor’s commercial property.
The mortgagor had defaulted on the payments due under the charge and failed to redeem it on expiry of the term. The mortgagor had also been involved in divorce proceedings, the outcome of which being that the court had ordered that the property in question would be transferred to the mortgagor’s ex-wife.
In the first instance the mortgagor’s ex-wife applied to the court to limit the amount due under the charge to the inital loan amount of £80,000, thus avoiding any additional sums due by way of interest, rent and costs over a six year period. This application was opposed and ultimately refused.
Thereafter receivers were appointed as an interim measure to collect the rent for the mortgagee. The parties subsequently attended mediation and reached an agreement whereby the mortgagee would receive payment of the sum loaned together with interest, the collected rent and legal costs.