Any Ideas?
In 1975, unmarried couple David and Amanda bought a freehold house called Drayton Mansion together. The legal title was placed in their joint names. The purchase was financed by a mortgage loan, and the mortgage bills were regarded as a joint responsibility by the couple. They both contributed in proportion to their income, and by the time the mortgage was discharged Amanda had paid 60% of the total purchase costs, and David 40%.
In 2008 their relationship broke down when David began seeing another woman, Melanie. Having just inherited a large sum of money from a distant relative, he was able to buy a new house, Bellville Bungalow, without the assistance of a mortgage. David and Melanie moved in after the purchase, but the legal title was put in the name of Melanie alone. At the time, David said to her ‘I would have put it in our joint names, but I don’t want Amanda to find out about this’. Melanie gave up her council flat to move in, and spent a summer refurbishing the property.
Subsequently, Amanda also started a new relationship with a man named Nigel. He moved out of the freehold property he owned and moved into Drayton Mansion with Amanda. He did not pay any rent, but after seeing to a number of repairs around the house, Amanda told him he could “stay for good”. Nigel then sold his freehold property and invested the proceeds in the stock market.
In late 2010 David wrote to Amanda saying “I want Drayton Mansion sold so I can get the money for my interest in the property”. However, the house was not sold and a month later they both decided suddenly to end their new relationships and get back together. David moved back to Drayton Mansion whilst Melanie continued to live in Bellville Bungalow alone. Melanie suggested that she buy out David’s interest in Bellville Bungalow, and David readily agreed. A price was decided, but before the sale went through David died unexpectedly. In his will he left all of his property to Beatrice, his sister. Beatrice is short of money and wants to realise the cash value of any land assets she has gained. Nigel continues to live in Drayton Mansion, and Amanda now wants him to leave. He has refused, saying he was promised he could stay and he has nowhere else to go.
Explain the property rights of the surviving parties, addressing the following points specifically:
i) The extent of Beatrice’s interests in Drayton Mansion and Bellville Bungalow, if any.
ii) How Beatrice might seek a sale of Drayton Mansion and Bellville Bungalow, if she were found to have an interest in either property.
iii) Whether Nigel has any claim to be able to stay at Drayton Mansion.