Rely on the most comprehensive, up-to-date legal content designed and curated by lawyers for lawyers
Work faster and smarter to improve your drafting productivity without increasing risk
Accelerate the creation and use of high quality and trusted legal documents and forms
Streamline how you manage your legal business with proven tools and processes
Manage risk and compliance in your organisation to reduce your risk profile
Stay up to date and informed with insights from our trusted experts, news and information sources
Access the best content in the industry, effortlessly — confident that your news is trustworthy and up to date.
Find up-to-date guidance on points of law and then easily pull up sources to support your advice with Lexis PSL
With over 30 practice areas, we have all bases covered. Find out how we can help
Our trusted tax intelligence solutions, highly-regarded exam training and education materials help guide and tutor Tax professionals
Regulatory, business information and analytics solutions that help professionals make better decisions
A leading provider of software platforms for professional services firms
In-depth analysis, commentary and practical information to help you protect your business
LexisNexis Blogs shed light on topics affecting the legal profession and the issues you're facing
Legal professionals trust us to help navigate change. Find out how we help ensure they exceed expectations
Lex Chat is a LexisNexis current affairs podcast sharing insights on topics for the legal profession
Discuss the latest legal developments, ask questions, and share best practice with other LexisPSL subscribers
Supreme Court could not to come to the aid of victims of sale and rent back schemes in the test case decision of Scott v Southern Pacific Mortgages  UKSC 52.
SRBs involve individuals selling their homes, usually at a discount and obtaining an agreement to remain in the property for a set period. Typically this is pursuant to an assured shorthold tenancy. The idea is to help homeowners clear their mortgage,
or other debts, whilst remaining in their home
In 2009 the Financial Services Authority recommended that consumer detriment occurring in this market warranted a fast regulatory response, and in the same year SRB’s were made regulated ac-tivity under Financial Services and Markets Act 2000
In February 2012 the FSA (now the FCA) reported that most SRB transactions were either unafford-able or unsuitable and should never have been sold. Following a review of all regulated SRB firms, the FSA referred one firm to its enforcement division while
others either stopped taking on new business or cancelled their permissions. Effectively, this meant the entire SRB market was temporar-ily shut
Subsequently, following a comprehensive review of mortgage markets between 2009 and 2012, the Mortgage Market Review (MMR) final rules were published in October 2012. Reforms to SRB schemes came into force on 26 April 2014
On 24 January 2012, the Court of Appeal held, in several conjoined appeals, that the mortgage lenders took priority over the occupiers in the SRB transactions in question. The properties were bought by individuals connected with the SRB organisation.
They obtained buy-to-let mortgages in their own names. The mortgagees were unaware of the SRB arrangements. The individuals default-ed on the mortgages. The court held that no equity arose in the sellers' favour prior to completion and even if it
had the mortgagees did not take subject to it.
In Scott v Southern Pacific Mortgages  UKSC 52 a test case, the appeal by one of the sellers has now been dismissed by the Supreme Court (who expressed its
Access this article and thousands of others like it free by subscribing to our blog.
Read full article
Already a subscriber? Login
0330 161 1234