Northern Ireland Mortgages - Ask Financially

How are the laws of repossession different in Northern Ireland?

If there is no reasonable prospect of any mortgage arrears being repaid within a reasonable time period. The Council of Mortgage lenders insist that possession of the property is sought only as a last resort should any alternative arrangements with the borrower be unsuccessful.

The legal process in Northern Ireland governing repossession is similar to that in England and Wales, but possession cases are heard in the high court in Northern Ireland rather than the county court. In the high court, the cases can be heard before a High Court judge or a Master of the Chancery Division. The other difference is an administrative one, as once an order is processed in the high court, subsequent dealings will be with the Enforcement of Judgements Office (EJO) which is a separate agency aimed at dealing with enforcement, that doesn't exist in England and Wales.

An initial action entered in court in Northern Ireland is known as an originating summons. This is a notice to the borrower than they have had an issue for action made against them. There is 14 days to respond.

Should not response be made the lender applies to the court by a notice of appointment for a hearing in front of the Master. The borrower will receive an affidavit filed by the lender's solicitor, and a notice setting out what he can do should he want to arrange to pay. When the Master of the Chancery Division receives the case, he can dismiss the case, make an outright possession order, a suspended possession order or a sale and possession order. This last type of order is not available in England & Wales. It is specific to Northern Ireland and gives the agent the chance to place the sale.

50% of summonses in Northern Ireland result in a possession order, and 50% of these are suspended. An outright possession order gives the borrower 28 days to make the delayed mortgage payments or deliver the property to the lender. Should it be a suspended sentence, and the borrower defaults again, the case has to go back to the high court, where evidence should be presented that the terms of the suspended order have not been adhered to. The Master can then make another order as he considers just. In England and Wales, no subsequent order is necessary should a suspended order be defaulted upon.

Once the 28 day period is over, the lender has to apply to the EJO for leave to enforce the order. The borrower has 10 days before eviction. The borrower can appeal against the orders and the Master at the EJO, should he agree with the appeal can ask the High Court to reassess the situation.

How are the laws of repossession different in Northern Ireland?

© AskFinancially.com 2008

Mortgage Advice

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How are the laws of repossession different in Northern Ireland?

© AskFinancially.com 2008

Mortgage Advice

Insurance & Loans

Copyright