The house was owned in joint names. The husband became bankrupt, and the wife continued to pay the mortgage as to interest and capital. The trustee sought a declaration as to the ownership of the interests in the house. After the husband died, the trustee claimed an occupation rent.
Held: The wife’s interest should be calculated to allow for an occupation rent. The court should look to do justice according to the situation. The trustee had no opportuinty to occupy the property for the financial benefit of the creditors, and so fell within the class of joint owners excluded from the property. The absence of an ouster order was not conclusive against him.
Judges:
Mr Justice Lawrence Collins
Citations:
[2003] EWHC 1267 (Ch), Times 13-Jun-2003, Gazette 19-Jun-2003, Gazette 14-Aug-2003, [2004] 1 FLR 56, [2004] Fam Law 14, [2003] BPIR 1089, [2004] 2 FCR 454, [2004] 1 P and CR 12
Links:
Jurisdiction:
England and Wales
Citing:
Cited – Re Gorman ChD 1990
The matrimonial home was in the joint names of husband and wife. After the marriage broke down, the husband left the home, and the wife discharged all mortgage payments (both capital and interest). The husband was adjudicated bankrupt. The wife . .
Cited – in Re Pavlou (A Bankrupt) ChD 17-Mar-1993
Mr and Mrs Pavlou bought a house for andpound;12,500 with a mortgage of andpound;9,500. After the husband left, the wife remained in sole occupation, and paid the mortgage instalments as they fell due. Thirteen years after the marriage Mrs Pavlou . .
Cited – Leigh v Dickeson 1884
The principles of equitable accounting apply equally to beneficial tenancies in common and beneficial joint tenancies. The guiding principle is that neither party can take the benefit of an increase in the value of the property without making an . .
Cited – Leake (formerly Bruzzi) v Bruzzi CA 1974
The house was purchased in the husband’s sole name with a declaration of trust in favour of the husband and wife, holding the property as joint tenants. The wife had left the matrimonial home, and the husband had paid all the mortgage instalments . .
Cited – Suttill v Graham CA 1977
The husband remained in the home after the divorce and paid all mortgage instalments.
Held: An occupation rent was payable.
Stamp LJ said: ‘a beneficiary entitled to an equal share in equity of property of which he is a trustee, and which . .
Cited – M’Mahon v Burchell CA 1846
Terence M’Mahon had left his house in St Christopher to his seven children as tenants in common. One of them (William) frequently occupied the house, three others occupied it occasionally, and three not at all. The executors of one of the children . .
Cited – Dennis v McDonald CA 1982
The plaintiff and defendant had lived together in a house held in their joint names. The woman left the home as a result of the man’s violence, and he kept up the mortgage payments.
Held: If in order to do equity between the parties an . .
Cited by:
Cited – Murphy v Gooch CA 27-Jun-2007
The unmarried parties had sought an order from the court as to their respective interests in their former family home.
Held:The judge had been incorrect to make his decsion based on the principles of equitable accounting. He should have used . .
Cited – Stonham v Ramrattan and Another CA 16-Feb-2011
The bankrupt, while solvent had acquired a property which was first put in his own sole name, but then transferred to his wife outwardly ‘in consideration of love and affection’. Several years later, on the bankruptcy, the trustee sought to have the . .
Lists of cited by and citing cases may be incomplete.
Land, Insolvency
Updated: 05 October 2022; Ref: scu.183710