Putting The Brakes On The Start Mortgages Decision

In a welcome move, the Irish Government recently published draft legislation which provides that certain previously repealed statutory provisions relating to banks' powers of enforcement over secured property will continue to apply to all mortgages which were created prior to 1 December 2009.

Background

The Bill has been introduced to address the uncertainty in the law which was created by the decision reached in the controversial Start Mortgages case.  In that case, the judge ruled that the owner of a charge over registered land which was created before 1 December 2009 could only apply for an order for possession of that land in circumstances where repayment of the principal monies became due before 1 December 2009, and a demand for repayment had been made before 1 December 2009.