Kent Solicitors

It happens quite a lot. A Husband and Wife own a property together. H forges signature of W on a mortgage to raise money. W finds out about it much later, often when the money and H have gone. The Lender seeks a sale of the property

Case law has shown that the mortgage is not a nullity, but it binds the forger in relation to any property interest owned by that person i.e. H and his half share. It creates, what we lawyers call, an equitable mortgage of H's beneficial interest

The Lender can apply to the Court for a sale to realise its money. The Court has discretion as to the timing of a sale.

In a case a few years ago, weighing up W"s circumstances, the needs of the 2 children and their ages and the Lender"s interest; an order was made for a sale of the property in 5 years time. W would get half the sale proceeds and the Lender would have to be content to take its money from H"s share, which might or might not be enough at the time

Labels: forgery signature mortgage charge