Tyne & Wear

Default-victim tenant faces eviction from Tyneside home

A tenant from Tyneside facing eviction after a landlord went bust has lost her court battle to be allowed to stay.

Rosemary Scott was one of a number of people who sold their homes to the now-defunct North East Property Buyers for knockdown prices, under a deal whereby they could rent them back indefinitely.

However, it defaulted on mortgages and the lender repossessed the homes.

Southern Pacific Mortgages was unaware of the separate deal with tenants and the Supreme Court ruled in its favour.

In a test case, Mrs Scott argued the original agreement she made with the landlord should stand, and she should be able to remain in her home in Longbenton.

The judgement, allowing the lender the right to take the property back, could affect hundreds of other people in a similar position.

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