Owen and Elizabeth decide to live together, but not marry. They want to run a business and live on the premises. In 2000, Owen and Elizabeth buy a building, which has a shop and an apartment, for £200,000. Owen will run the business, and insists that the legal estate is registered in his name.
Owen has no savings, but Elizabeth provides £25,000 towards the purchase. Her father, James wants a stake in the business and provides £100,000. Owen provides the remaining £75,000 on a mortgage, which is in his name. Elizabeth and James ask Owen to declare a trust of land, in writing, so that their “shares” are protected. Owen refuses and says that it is not necessary to have anything in writing as he accepts that they all have a share in the building. They never discuss what the size of those shares are.
Elizabeth works hard in the business and does not object when Owen borrows money to help run the business, using their home as security. She and Owen have two children. She looks after them without any help from him. She carries out all the housework tasks, without Owen's help.
In 2017, Owen and Elizabeth separate. The mortgage has been paid and the building is now worth £400,000. Owen claims that, as only he holds the legal estate, the building belongs to him. Elizabeth and James think that they have a claim to shares in the equitable interest of the building.
Advise Elizabeth and James upon whether they have any claim to the family home and upon how the court might calculate the size of the shares.
Equity and Trusts law problem question answer/guideline Watch
- Thread Starter
Last edited by gmaster111; 3 weeks ago at 01:43.
did you get help for this..?