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Land Law Essay Problem Question University Of Kent, Second Year Research Paper

1880 words - 8 pages

Apple manor
Whether Teresa can stop yourmoney mortgages from repossessing
Equitable Beneficial Interest
Firstly in relation to Apple manor YouMoney mortgages are pursuing repossession as a result of their overdue payments on their mortgage, if their request will be successful is subject to if Teresa has a beneficial interest binding on YouMoney. In this case we are not informed of any document which meets the formality requirement of section 53 (1)(b) of the LPA 1925 that would have illustrated the parties intentions or a TR1 form and according to section 1 & (1)(3) of the LPA 1925 benedetta having sole registered title means benedetta has sole legal title and her right, a legal property right thus teresa’s interest may only be equitable however it can also be interpreted to mean that benedetta has sole beneficial ownership.
To determine if Teresa has an equitable beneficial interest, it would need to be established that benedetta was holding the property on trust for Teresa and herself. For Teresa to establish her beneficial interest she could claim using a common intention constructive trust[footnoteRef:1]. Benedetta saying to Teresa that she would always have a roof over her head could possibly be argued to constitute an express agreement however this claim is unlikely to be successful as the courts have taken a more restrictive approach in accepting excuses and implied express agreements as evidenced in the case of Curran v Collins[footnoteRef:2] where when the claimant asked about holding an interest in the property, she was told it would be too expensive and the court held this not sufficient as an excuse which indicated agreement, Also it is important to note that benedetta made that statement due to their mother daughter relationship, she may have said this not bearing in mind the implications it could have in possible subsequent proceedings. [1: As we are not told of any express trust, Lloyds bank plc v rosset ] [2: 2015]
To ascertain a beneficial interest for Teresa however could be achieved through the use of an implied agreement trust this is illustrated by teresa’s conduct including her paying for the costly repairs which afforded benedetta the home and continuously paying for the costs as they arise which infers her reliance. Applying the test set out in the case of Lloyds bank plc v Rosset, lord Bridge stated that only direct contributions to the purchase price will suffice for an implied bargain leading to a constructive trust, therefore applying this test, Teresa’s attempt to claim through this manner would not be successful, however applying the principles set out in the case of Stack v Dowden that consider indirect financial contributions to the purchase price, sufficiently acceptable demeanor in order to infer a common intention.
Quantification of interest
In relation to the quantification of Teresa’s interest in Apple Manor it is unlikely Teresa would be given an equal fifty-fifty share between her and benedetta as in the...

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