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1. Abi and Brid decide to purchase a house together, which they intend to let out.
They each contribute £120,000 towards the purchase price of £240,000. Because Brid is out of the country at the time, they agree that Abi will be the sole registered proprietor, as she is available to do all the necessary paperwork. The sale completes on 4th January 2022, and Abi is registered as owner of the freehold interest on 11th January 2022.
On 1st February 2022, Abi and Brid agree to give Chris a one-year ‘licence’ to occupy the house for £800 per month. Although Chris will be the only one living in the property, there are clauses in the agreement which reserve the right of Abi and Brid to introduce a second ‘licensee,’ and for Abi and Brid to arrange for basic cleaning of the house once per month. Abi and Brid tell Chris that theyare only including those terms to ‘ensure the Rent Acts do not apply.’ Chris is happy with the agreement and signs; Abi and Brid also sign. Chris moves in a week later, on 8th February 2022. No second licensee is introduced to the home, and no cleaning is ever carried out.
Without telling either Brid or Chris, Abi decides to use her ownership of the house to raise a loan by way of a legal mortgage. She grants the bank a mortgage interest in the house on 1st March 2022, which is registered on 5th March 2022. Abi uses the money for a business venture, which unfortunately is unsuccessful. The mortgage goes unpaid in April and May 2022, and now the bank is looking to take possession of the property with a view to sale. Brid and Chris are heartbroken to hear about this, and are seeking your advice on whether and when the bank might lawfully take vacant possession of the property and sell it.
Advise Brid and Chris.
2. Drew Park is a large estate comprising the main house, a cottage, and a wooded area used for recreational mountain biking. Engelbert is the registered owner of the freehold interest. In June 2019, he decides to let out the cottage on short-term holiday lets, with the cottage appealing to those with a mountain biking interest. Guests staying at the cottage have full use of the wooded area for biking. Next to the cottage is a parking area, which has two spaces. Since there is no vehicle access to the main house, Engelbert parks his car in one of the spaces next to the cottage, with the other space being used by guests at the cottage.
In February 2021, Fahim stays in the cottage and enjoys his stay so much – particularly the opportunity to go mountain biking in the wooded area – that he offers to buy the freehold interest in the cottage for £300,000. Engelbert agrees, and in March 2021, Fahim becomes the registered freeholder of the land at the cottage. Nothing is said in the conveyance about the right to access the wooded area (which remains part of the main estate), or Engelbert’s right to park his car at the parking area (which is clearly marked on the title plan as part of the cottage ownership).
A year later, Engelbert sells his freehold interest in the estate (comprising the main house and wooded area) to Geraldine, for £1,000,000, who is now registered as proprietor. Geraldine objects to Fahim using the wooded area for biking. Fahim objects to Geraldine parking her car on his land
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