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Case Reports: General Law Homes under threat Elderly residents who have moved to a Lakeline Estate, a Residential Park on the southern shores of beautiful Lake Illawarra, have been shaken from their peace by the actions of the owner of the park where they live. The residents own their relocateable homes, but rent the site on which they stand. They have been shocked to find that the land owner has mortgaged many of the blocks in the Estate, and that the mortgages may include their homes. Some of the mortgages were already in existence when the residents bought their homes and moved in. Others have been taken out since they took up residence. In all cases the residents were unaware of the existence of these mortgages, and obtained no benefit from them. Wollongong Legal Aid’s Civil Law Centre has been representing one resident in the Supreme Court in a battle to enable him to lodge a caveat on his site. The team now represents over 70 residents. The owner of Lakeline Estate, Mr Bruce Maples, is on record as saying that he does not believe our clients’ mobile homes are included in the mortgages. They are, he says, “101% safe”. Whether this is the case has yet to be seen, and the lending institutions have been approached to see whether they believe the mobile homes are included in the security offered for the mortgage. It is clear, however, from the mortgage documents that the value of the mortgage exceeds the value of the land, and in some documents there is specific reference to the mobile homes being security for the loan. Most of the sites occupied by residents are subject to mortgages. Local MP, Colin Markham, arranged a meeting between Legal Aid lawyers and the Minister for Fair Trading, John Watkins. Mr Watkins is responsible for the legislation covering Residential Parks and gave the legal aid team a sympathetic hearing. We are aiming to do two things,” says Michael Sergent. “We need to find an immediate solution to the position our clients find themselves in. We also need to make sure that the law is clarified, and that lending procedures are improved, so that those who own their own mobile home and rent a site in a Residential Park, never find themselves in this position again. By using this case, we can highlight a shortcoming in the law, and lobby to have the law changed. By using our resources in this strategic way, we get more bang for the legal aid buck." Back to full list of case reports |
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