Scottish Law re Shortfall debts

In Scotland a lender must start action to recover any mortgage shortfall within a period of 5 years.

The 5 years starts to run as per the specified date on the contract (mortgage deed) or the relevant default date.

As long as the 5 years has passed without a relevant claim having been made the obligation is extinguished, providing that the debtor has not acknowledged the alleged debt.

The term "relevant claim" means that:

an action has been raised in a Scottish Court or

a petition for sequestration has been lodged or

any form of dilignce has been carried out in enforcement of the obligation.

A letter from a Lender to a Debtor advising a shortfall would not count as a "relevant claim"

This area of Scottish Law is covered by the Prescription and Limitation (Scotland) Act 1973

I hope this helps someone!

Moira

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