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Stockport man's 15-year mortgage debt written off

14/02/2008

A man in south Manchester who did not make mortgage payments on his house for 15 years has been told by judges that he does not have to pay the debt.

Djabar Babai, who lives in Stockport, was also told by judges that he can keep his home despite a £165,000 debt.

The householder who was declared bankrupt in 1993 - the year he made his last payment - now legally owns the £200,000 house.

It was ruled that because NatWest Bank took more than 12 years to take action, Mr Babai now has squatters' rights.

Commenting on the ruling, William O'Neill, of Manchester-based law firm Rowlands, told BBC News: "As things stand lenders have ample time within which to take action to recover their money.

"What was unusual about this case was that NatWest took in excess of 12 years to take steps to recover money due to them. I think the case is highly unusual."

The bank, which is considering taking the case to the House of Lords, said that mortgage lenders could now issue possession proceedings in cases where they may not otherwise have done so.