Mortgage Repossessions

Costs claimed by a mortgage company in mortgage repossession proceedings are payable on the indemnity basis.  There is usually a contractual term allowing them to recover the costs included within the mortgage contract.  If it is not included the term is generally implied into the contract anyway.

The Courts rarely assess the amount payable as this is contractual and not under the usual jurisdiction of the Court.  This can often mean that the poor homeowner is looking at a hefty bill being added to the amount owed whether or not they lose possession of their home.

However, the Court has the power to Order a Detailed Assessment of the costs or to disallow them.  The power can only be exercised where the costs have been unreasonably incurred.

If you attend a hearing that was unnecessary as a result of how the mortgage company conducted themselves then you should ask the Judge to Order that they not recover the costs of the hearing.  Where you believe the whole or a major part of the proceedings were defective, whether because you did not owe the amount claimed or had sought to resolve matters without going to Court and been ignored, you should ask the Judge to consider whether to disallow all or part of the costs (as well as possibly having yours paid) or alternatively to Order the costs be subject to detailed assessment.  If the Judge asks you on what authority he can do this then refer him/her to CPR rule 25.1(1)(n) and Section 50.3 and 50.4 of the Costs Practice Direction.

Beware, detailed assessment can be expensive.  You should not be seeking detailed assessment over a few hundred pounds as any saving may rapidly be eaten up by the costs of the proceedings.  If you are heading to detailed assessment it is important that you put an offer to the other side to protect your position and once they serve the bill you MUST provide points of dispute within 21 days or you will automatically lose. We strongly recommend you contact us to discuss the matter immediately a bill is served on you, if not before.