Property and Trusts question help please!

Question:

Anna and Joe Kennet met in 1999 and started living together in 2002. In September 2004, Anna gave up her job as a teacher and shortly after gave birth to their first child. In December 2004 Joe bought a house for £50,000. It was a leasehold property, the lease having 70 years left to run. Anna used £5,000 she had inherited from an aunt to pay the deposit. Joe took out a mortgage for the balance. Joe, Anna and the baby moved into the house just before Christmas.

Anna did not return to work at the end of her maternity leave but looked after the house, brought up their first child and, in 2006, gave birth to their second child.

During this period, Joe worked as a fireman and paid the mortgage instalments and all their outgoings. In 2010, the owner of the freehold of the house offered to sell the freehold to Joe for £30,000. Joe took advice and was told that the value of the leasehold interest was £75,000 but that if he purchased the freehold, he could then sell the property for £200,000. Joe arranged a further mortgage with his lender and purchased the freehold.

Unfortunately, Anna and Joe have separated and Anna has gone to live with her widowed mother. Joe has told Anna that she is only entitled to £5,000, the amount of the deposit she paid in 2004, and he has offered to pay her that sum.

Fully explain the relevant law and advise Anna whether she should accept Joe’s offer of £5,000 or if she is entitled to a share in the leasehold and/or freehold interests in the house.

I'm confused as to why I've been given this question to do, as we have only looked at non-married couples, but these are married so its an entirely different area of law that I haven't done?

Reply 1

hardcore1

I've also got the same scenario. This scenario IS about non-married couples as it is not mentioned anywhere that they are married.

Issues to look at are: - making of constructive trusts, trust of land and co-ownership and equitable interest in land. Go through your lecture slides on Trusts of the Family Home.

Reply 2

jacketpotato

20

The question doesn't say they are married?

(edited 12 years ago)

Reply 3

insignificant

OP

16

Original post by hardcore1

I've also got the same scenario. This scenario IS about non-married couples as it is not mentioned anywhere that they are married.

Issues to look at are: - making of constructive trusts, trust of land and co-ownership and equitable interest in land. Go through your lecture slides on Trusts of the Family Home.

The reason why I thought they were married is because it says ''Anna and Joe kennet''??

Original post by jacketpotato

The question doesn't say they are married?

Reply 4

Duncette

I think it's the separation issue, Insignificant. She's gone and lived with her mum, so they're no longer together. I would treat it as though they were separated, not married.

There are potential issues regarding Anna's consent to the second mortgage that you might like to touch on, as she should have been consulted (if you can establish a trust with Anna as beneficiary).

Property and Trusts question help please!

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