The Supreme Court judgment in Scott v Southern Pacific Mortgages Ltd & Ors  UKSC 52 relates to a residential property sale and lease back (equity release) scheme that went badly wrong for the owners of various properties in the North East. The finding of the Supreme Court confirms how badly wrong the scheme went. However, the reasoning given by the Court raises issues for transactions beyond those in this case.
The case of Hunt & Ors v Optima (Cambridge) Ltd & Ors  EWCA Civ 714 involves claims by eight purchasers against Optima, the developer of a block of flats, and Strutt & Parker (S&P) who were engaged by the developer to issue architects’ certificates to purchasers of flats in relation to the construction work.
Since the Court of Appeal’s decision in K/S Victoria Street v House of Fraser (Stores Management) Ltd  EWCA Civ 904, concerns have existed over those post-1995 Act leases (and there are many) in respect of which a group assignment clause had been included to provide an element of freedom to assign the lease within the original tenant’s group of companies, provided the parent body guarantor of the original tenant committed to a repeated parent body guarantee in respect of all assignees within the group.