Statute of limitations jurisdiction conflict?

AlexMason

I had a mortgage with a main UK Bank that defaulted 13 years ago at beginning of 2007, the property was disposed of by 2009 and there remained a significant capital debt circa 30k after disposal. The buy-to-let property was in Scotland and both I and the bank were located in England at date of contract and continued to be subsequently.

The bank's terms and conditions state that disputes are to be resolved 'non-exclusively' by the English Courts. I have not heard from the bank since 2012. I had believed that the statutue of limitations is12 years since default according to English law and that has now expired. However, it occured to me that the bank may at some future date decide to try to call in this debt for the capital shortfall by claiming that the Scottish 20 year statute of limitations applies for mortgage related capital.

I would like to thoroughly research this now so that if the bank of an assignee do get in touch in the next 7 years I can engage with it tactically forewarned and armed. Has anyone experienced a similar situation and help me to discover if there is any precedent? 

sourcrates

Hi,

Most people who have been through repossession don`t tend to have access to large sums of cash, lenders do recognise this, and that`s why mortgage shortfall debts don`t tend to be chased that enthuziastically.

If your bank was based in England, then English law applies, its where the agreement was signed that matters, not the location of the collatoral for that debt, also the house has been sold, so plays no further part in this story.