Aldermore Bank Plc v Rana

Aldermore Bank Plc v Rana

Completion of the mortgage transaction required actual redemption of the prior Clydesdale charges. Since the mortgage advance was not used for this purpose and the charges remained undischarged, there was no completion, and Mr Rana was not contractually liable for the mortgage advance except for the sum paid to him.

Parties
Claimant/appellant: Aldermore Bank PLC; Defendant/respondent: Nassir Rana
Jurisdiction
England and Wales
Judgment Date
26 November 2015
Procedural Posture
Civil Appeal / Appeal From High Court Judgment
Outcome
appeal dismissed
Legal Topics
Mortgage Completion, Solicitor Undertakings, Trusts in Conveyancing, Remortgage Transactions
Banking Law Property Law Conveyancing Mortgage Completion Solicitor Undertakings Trusts in Conveyancing Remortgage Transactions

Case Brief

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Parties

Aldermore Bank PLC

Claimant/appellant

Nassir Rana

Defendant/respondent

Procedural Posture

Civil Appeal / Appeal From High Court Judgment

Legal Issues

  1. 1 Whether the mortgage transaction was completed so as to make Mr Rana liable for the mortgage loan and interest claimed
  2. 2 Whether the receipt of completion monies by the borrower's solicitors constituted completion of the mortgage transaction
  3. 3 Whether the mortgage advance ceased to be trust money before redemption of prior charges

Ratio Decidendi

Completion of the mortgage transaction required actual redemption of the prior Clydesdale charges. Since the mortgage advance was not used for this purpose and the charges remained undischarged, there was no completion, and Mr Rana was not contractually liable for the mortgage advance except for the sum paid to him.

Court Disposition

appeal dismissed

Orders

  • Mr Rana is liable only for the sum of £78,193.64 paid to him; the Bank's claim for the balance of the mortgage advance is dismissed.