The High Court has rejected an attempt by Vivier Mortgages Limited to obtain summary possession of property in Co Cork after finding that important disputes over the mortgage required a full hearing.
Michael Lehane had borrowed £21,000 from Wise Mortgage Company Limited in September 1997 and granted a charge over property registered on Folio 67556F Co Cork. Vivier later became successor in title to the mortgagee.
The mortgage ran for 15 years. Its documentation referred to an APR of 29.2%, monthly payments and, in certain circumstances, a reduced payment structure. The last payment was made in August 2011.
Vivier claimed a redemption figure of €90,622.44 as of September 2013 and sought possession after making demand. It later conceded part of its interest claim and proposed limiting recovery from a sale to €40,952.64 plus interest at 18% annually from September 2012. That calculation produced a claimed balance of €155,653.12 by April 2016.
Lehane accepted borrowing the principal, falling into arrears and creating the charge. However, he disputed how interest had been calculated and contended that only about €8,000 was due when demand was made.
Ms Justice Baker found the loan documentation and interest calculations sufficiently unclear that the true amount owed could not be determined on affidavit evidence. Lehane’s calculations were also supported by a chartered accountant rather than resting on assertion alone.
The court rejected a separate argument that an inaccurate demand letter was necessarily invalid.
However, it also found an arguable defence concerning the alleged source of the original lending funds. Lehane claimed the money was connected to assets associated with convicted fraudster Ian Leaf, also known as Ian Andrews. Vivier said any illegality had been cured under English law when confiscated assets were purchased, but no expert evidence of that foreign law was produced.
The High Court therefore dismissed Vivier’s appeal. No summary possession order was granted, leaving the underlying dispute to be resolved through fuller proceedings.