Cheltenham & Gloucester Building Society v Norgan [1995] EWCA Civ 11 (05 December 1995)

Cheltenham & Gloucester Building Society v Norgan [1995] EWCA Civ 11 (05 December 1995)

The correct approach is that the court should take the full remaining term of the mortgage as the starting point for assessing a 'reasonable period' for payment of arrears under s.36 of the Administration of Justice Act 1970, subject to the borrower's ability to pay and the adequacy of the security. The previous practice of routinely limiting the period to two to four years is incorrect.

Citation
[1995] EWCA Civ 11
Parties
Plaintiff/respondent: Cheltenham & Gloucester Building Society; Defendant/appellant: Christina Norgan
Jurisdiction
England and Wales
Judgment Date
05 December 1995
Procedural Posture
Appeal / Court of Appeal Judgment on Appeal From County Court
Outcome
Appeal allowed; case remitted to county court for further determination.
Legal Topics
Mortgage Possession Proceedings, Reasonable Period for Payment of Arrears, Court Discretion Under Administration of Justice Act 1970 S.36, Interpretation of Administration of Justice Act 1973 S.8
Property Law Civil Procedure Mortgage Possession Proceedings Reasonable Period for Payment of Arrears Court Discretion Under Administration of Justice Act 1970 S.36 Interpretation of Administration of Justice Act 1973 S.8

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Parties

Cheltenham & Gloucester Building Society

Plaintiff/respondent

Christina Norgan

Defendant/appellant

Procedural Posture

Appeal / Court of Appeal Judgment on Appeal From County Court

Legal Issues

  1. 1 What constitutes a 'reasonable period' for payment of mortgage arrears under s.36 of the Administration of Justice Act 1970?
  2. 2 Should the full remaining term of the mortgage be the starting point for assessing a reasonable period for payment of arrears?
  3. 3 How should courts exercise discretion under s.36 and s.8 in mortgage possession cases?

Ratio Decidendi

The correct approach is that the court should take the full remaining term of the mortgage as the starting point for assessing a 'reasonable period' for payment of arrears under s.36 of the Administration of Justice Act 1970, subject to the borrower's ability to pay and the adequacy of the security. The previous practice of routinely limiting the period to two to four years is incorrect.

Court Disposition

Appeal allowed; case remitted to county court for further determination.

Orders

  • Case remitted to county court for determination of disputed items and precise arrears.
  • Calculation of instalments required if arrears are paid over the remaining mortgage term.