Hundreds of sale-and-rent-back disputes have been decided by a test case in the Supreme Court.

The Supreme Court has unanimously dismissed the appeal from Scott in Southern Pacific Mortgage Limited v Scott. The news will be welcomed by lenders who have been waiting for the court's ruling.

The case involved North East Property Buyers (NEPB), a group of individuals who targeted a sale-and-rent-back scheme at home owners facing difficulties with their mortgage repayments.

In 2005, the appellant, Mrs Scott, sold her home to an investor, Ms Wilkinson, who was linked with the NEPB scheme, at a considerable undervalue. In return, Scott gave up a significant portion of the sale proceeds in return for a promise that sh...

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