Bill could help more on homes.

THE practice of repossessing a property after the homeowner has defaulted on just one mortgage repayment could soon be curtailed.

Leamington lawyer Rachael Allsop, an assistant solicitor specialising in property at Rugby Road firm Blythe Liggins, said a private members bill now going through the House of Commons could soon make it more difficult for lenders to repossess a home.

Council of Mortgage Lenders figures suggest that 75,000 homes are expected to have been repossessed by the end of the year.

Under the Law of Property Act 1925, a lender is able to sell a defaulting homeowner's property without the need for a court order, even in situations where the borrower has only defaulted on one mortgage payment.

The introduction of the Home Repossession (Protection) Bill seeks to force lenders to first obtain the court's permission, through a court order for possession, before selling a homeowner's property.

The Bill also proposes to give courts the power in specific circumstances to delay the lender's power to sell and give the homeowner the opportunity to repay the arrears when their situation changes.

"The Bill would mean that lenders would have to be more supportive of defaulting owners and use their powers only in the most extreme circumstances, when everything else has failed," said Miss Allsop.