Squatter ruling is bad news for borrowers says National Homebuyers

There are fears that many more UK homeowners face the prospect of trying to avoid repossession after a man won squatters' rights in a court case.

[ClickPress, Tue Feb 19 2008] Djabar Babai last made a £40 payment on a mortgage he borrowed from NatWest in 1993 but has remained living in the property for 15 years.

The bank was said to have taken too long to try to claim the money back and Mr Babai was able to claim squatters' rights after 12 years.

It comes despite the man having been bankrupt since March 1993 and angered bosses at NatWest who warned that many other borrowers may now face the prospect of fighting to avoid repossession.

Justin Fenwick QC, who argued the bank's case, said that lenders would now be "forced to issue possession proceedings, where they would not otherwise have done so".

It is a major blow to anyone struggling with financial difficulties and unable to keep up with mortgage repayments. Julian King of the country's leading fast property purchase firm National Homebuyers adds, "Homeowners looking to avoid repossession or other threats should act fast.

"Options exists to help the homeowner in distress, but we urge homeowners in a dire financial situation to not bury their head inthe sand and act quickly".

Mr King is a director of National Homebuyers, the UK's leading quick property sale firm that completes at a timescale to suit the vendor. The company is also the leading provider of mortgage rescue solutions such as Sell and Rent Back.

The Council of Mortgage Lenders recently revealed that repossession figures are at an eight-year high.

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