Insolvency: ordering a sale of the family home

Comments on the Chancery Division ruling in Nicholls v Lan on whether the interests of a bankrupt husband's creditors prevailed over those of the wife, despite her circumstances being exceptional within the meaning of the Insolvency Act 1986 s.335A on account of her suffering from chronic schizophrenia, where the wife was the joint owner of another property which could be realised to buy out the trustee in bankruptcy's half share in the equity of the matrimonial home.

The mortgagee's duties on sale

Discusses the remedies available to mortgage lenders when borrowers default on their mortgage repayments. Examines aspects of the mortgagee's duty of care to the mortgagor when choosing to sell the property in terms of the timing of the sale, the mode of sale, the price obtained, and the sale of a commercial property to a party associated with the mortgagor. [From Legal Journals Index]

Beneficial ownership and detriment

Considers the factors which contribute to a court finding that a cohabitee has a beneficial interest in property, in particular the detriment which is required to establish a constructive trust, with reference to the Chancery Division decision in Levi v Levi and previous case law. Outlines the provisions on express or inferred common intention. Considers whether a loan of money from the non-owning to the owning cohabitant, made at a lower level than commercial loans, towards the purchase the property was sufficient detriment to entitle her to proceeds of sale from the property.

Oral agreements: estoppel, constructive trusts and restitution

Analyses the House of Lords judgment in Cobbe v Yeoman's Row Management Ltd in relation to claims by the prospective purchaser under an oral agreement for sale of a block of flats based on proprietary estoppel, a constructive trust and common law restitution brought against the owner of the property who sought to resile from the agreement after the purchaser had, at considerable expense, obtained planning permission to redevelop the property in reliance on assurances given by the owner that if permission was granted the sale would be honoured.

Returning to deposits...

Examines the Court of Appeal ruling in Midill (97PL) Ltd v Park Lane Estates Ltd on whether the court should exercise its discretion to return a deposit paid under a contract for the sale of a property where, despite the claimant having defaulted on its purchase, the owner obtained a higher price than would have been paid by the claimant when it subsequently sold the property to a third party. Considers the need for special or exceptional circumstances to be present to override the rule that deposits were to be forfeited upon the purchaser's default.

Deal or no deal

Discusses the pre-action protocol for mortgage possession claims which came into effect on November 19, 2008, highlighting the situations in respect of which it is suggested the lender "considers" not starting proceedings and the lenders entitlement to be informed of progress on the sale of the property. Reviews the guidance on mortgages and arrears issued by the Council for Mortgage Lenders, aimed at assisting lenders in complying with the Financial Services Agency's Mortgage Conduct of Business Rules Pt 13. [From Legal Journals Index]

Divorce deals and bankruptcy

Discusses the rights and responsibilities of trustees and beneficiaries of co-owned land under the Trusts of Land and Appointment of Trustees Act 1996, in particular s.14 which allows the court to make an order declaring the extent and nature of a person's interest in the property. Refers to the Court of Appeal decision in Avis v Turner on whether the existence of an earlier court order postponing the sale of matrimonial property following the owners' divorce meant that an application could not be brought by a trustee in bankruptcy under s.14. Considers the "exceptional circumstances" which could allow the court to postpone the sale. [From Legal Journals Index]

Quantifying the beneficial interests of cohabitees

Discusses entitlements to a share of the sale proceeds of the family home where partners are cohabiting but not married and the property is registered in the name of one person only. Explains the obligation to establish that a cohabitee has an equitable interest in the property under the principles of constructive or resulting trusts. Considers how the court is able to quantify the respective shares, both before and after Oxley v Hiscock. [From the Legal Journals Index]

What's exceptional?

Outlines the factors which the court needs to consider when deciding whether to grant an application for the sale of a property where the owner becomes bankrupt. Considers the different priorities to be given to the claims of trustees in bankruptcy and to secure lenders, with reference to the Trusts of Land and Appointment of Trustees Act 1996 ss.14 and 15, the Insolvency Act 1986 s.355A, and the exceptional circumstances in which claims will not be granted. Explores case law, in particular the Court of Appeal ruling in Avis v Turner, and the implications of the Human Rights Act 1998. [From Legal Journals Index]