On 29 January 2016, the Court of Appeal handed down judgment in Urban Ventures Limited v Thomas & Others  EWCA Civ 30, a decision on the priority of mortgages and the principles concerning “tacking”. The Court of Appeal has affirmed the earlier decision of the Companies Court that where a lender with first-ranking security re-documents its existing loan, that does not constitute a “further advance” engaging the rule against tacking, and the lender’s security therefore retains its priority position as against other subsequent lenders.
The decision is likely to be of interest to secured lenders and their advisers.
Ben Valentin, instructed by Neil Golding, Nick Stern and Sarah Robinson of Freshfields Bruckhaus Deringer, acted for Dunbar Assets PLC, the successful first-ranking chargeholder.
To view the judgment in full, please click here.