Free Law Dissertations - Grange House And Rose Cottage Opinion
Grange House and Rose Cottage
OPINION
Counsel’s instructions
1. In January 1995, Andrew and Beatrice bought Grange House at aprice of £100,000.00. Beatrice’s mother- Catherine paid £70,000.00 and the couple paid the balance- £30,000.00. The title was only registered in the names of Andrew and Beatrice. All three agreed however, that in return for her £70,000.00, Catherine would be allowed to live at Grange House when she could no longer look after herself.
Catherine was the sole registered proprietor of Rose Cottage. In 2000, her grandson Ian aged 18, moved in with her after his parents died. Catherine always assured Ian that he would always have a home at Rose Cottage. Ian became a general builder and carried out day to day repairs to the house. He paid his share of the bills but never paid any rent.
In 2004, Catherine had an accident and was hospitalised. When she came out of hospital, she moved into Grange House with Andrew and Beatrice. Catherine expected to live out her days at Grange House and so told Ian that she considered Rose Cottage to be his.
Ian then spent a great deal of money converting Rose Cottage into a modern house suitable for his lifestyle. He also changed the décor so that it is now very modern.
Andrew and Beatrice have now told Catherine that they want to sell Grange House and go travelling around the world. They have suggested that Catherine move back to Rose Cottage. There was no mention of Catherine’s £70,000.00 contribution to Grange House. The house is now worth £250,000.00.
Ian says that Rose Cottage is now not suitable for an old lady and says that Catherine should be in a home as she can no longer look after herself.
Counsel is asked to advise Catherine on her equitable entitlement (if any) to Grange House and whether Ian has acquired any equitable interest in Rose Cottage.
CONCLUSION
Catherine has acquired an equitable interest in Grange House as an implied trust has arisen in her favour. Catherine needs to decide the practical implications of each of her potential remedies outlined below.
9.Ian has acquired an equitable interest in Rose Cottage arising by way of the doctrine of proprietary estoppel. The courts will decide how much of Rose Cottage he is entitled to. In extreme cases, the courts have awarded the fee simple.
GRANGE HOUSE
Catherine paid 70% of the purchase price of Grange House. It is established principle that where one party contributes to the purchase price of a property a resulting trust arises when the property is not registered in their name. The courts have established that the presumption of a resulting trust holds that beneficial ownership results to the paying party. Therefore, taking a strictly arithmetical approach which the courts often do, Catherine would be entitled to 70% of Grange House.
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