A lot of people applied for interest only mortgages in the early 2000s. A lot of those mortgages are now coming to an end and if an owner isn’t able to refinance the debt then a building society or bank might choose possession proceedings as a way of recovering their outlay.

It may be possible to apply for equity release depending on the age of the owner, the state of the property and the ratio of equity to the amount already owned to the bank.

There are strict rules that govern possession claims. They are set out in Part 55 of the Civil Procedure Rules.

The claim for possession is usually brought in the County Court who has jurisdiction over where the property is although occasionally if there is a question of law that is complex then it may be heard in the High Court.

Anyone that receives a claim for possession should act quickly. Usually a defence is needed within 14 days and it has to be in the appropriate Court Form.

Even if there is no actual Defence to the Claim you can ask the Court to give you time to refinance or sell the property or ask for time to allow for a repayment scheme paying the debt by instalments.

A lender has to notify the person at the property, the local housing department and any other party that has a charge over that property. The lender has to show the notices to the Court at the hearing.

The first hearing will either be a hearing with an outcome that finalises the dispute or the Court may use the hearing as a Directions hearing.

The Court has several options available to it. It can make the Order for possession or suspend possession on terms agreed eg that the owner makes regular additional payments. The Court can simply make an Order on agreed terms between the parties.

Don’t think that a possession claim is undefendable. Provided you act quickly the claim can be managed to enable you to keep your home.