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.
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
The recent case of Aodhcon LLP v Bridgeco Ltd  All ER (D) 50 (Mar) considered the mortgage's duty to take reasonable care to sell a mortgaged property for the best price reasonably obtainable.
What happened in the case?
The claimant company, Aodhcon, was a special purpose vehicle created for the acquisition and development of a property. In March 2008, it purchased the property for £640,000. Part of the money used for the purchase came from a loan from the Bank of Scotland, secured by a first legal charge over the property. The development did not proceed quickly and, because the loan was about to expire, Aodhcon took out a bridging loan from the defendant company, Bridgeco. The bridging loan was originally to be repaid by April 2010, but that was extended to the 7 November 2010. In late November 2010, when the bridging loan had run out, the question of selling the property was raised. The property was sold in March 2011 for £852,000. Aodhcon issued proceedings against Bridgeco.
Aodhcon submitted that, first, Bridgeco had been in breach of duty as a mortgagee to sell the property for the best price reasonably obtainable, since it had obtained a substantially lower price than the one that it ought to have obtained on sale. It contended that, had Bridgeco not breached its duties, the property would have sold for £1.25m instead of £852,000. Secondly, it submitted that Bridgeco had not credited a deposit to the loan as soon as the deposit had been received by its conveyancing solicitors, so that interest had been charged on an outstanding sum, which had been more than it ought to have been. Thirdly, it submitted that, by using the expression 'monthly anniversary', the facility fee was uncertain or ought to be construed so as to refer to the 6 May in every year, rather than the 7 May. Fourthly, it submitted that the facility fee was a penalty.
What did the court decide?
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