Virtual assignments: breach of covenant against parting with or sharing of possession

Comments on the Chancery Division decision in Clarence House Ltd v National Westminster Bank Plc on whether the alienation covenant in a lease of commercial premises had been breached by the tenant effecting a virtual assignment of it, under which all the economic benefits and burdens of the lease were transferred to a third party without there being any actually assignment of the leasehold interest or change in occupancy.

Giving credit where it's due

Discusses the entitlement to occupation rent where one party to a relationship no longer lives in the matrimonial or family home in which he/she has an interest and a right of occupation. Describes the case law illustrating that forceful exclusion of the non-occupying party is not a prerequisite to entitlement to an occupation rent. Considers the calculation of the parties' respective credits where the occupying party has made mortgage repayments since the separation and the other is entitled to an occupation rent.

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.

A just claim?

Discusses the law relating to the payment of occupation rent to a co-owner by the party remaining in the property after a relationship breakdown both under the Trusts of Land and Appointment of Trustees Act 1996 and where the Act is not applicable. Considers, with reference to the Chancery Division decision in Re Barcham, whether a trustee in bankruptcy acting on behalf of the non-occupying person can claim an occupation rent under the court's equitable jurisdiction.

Rights for cohabitants

Reviews the guidance given by the House of Lords in Stack v Dowden on quantifying the beneficial interests of cohabiting parties in their former family home when one party seeks to rebut the presumption of joint beneficial ownership. Comments on the subsequent application of the principles by the county court in Adekunle v Ritchie and by the Privy Council in Abbott v Abbott, highlighting the approaches used to establish an equitable interest and to quantify the parties' shares in the properties. Considers whether statutory intervention is now needed to resolve the difficulties. [From Legal Journals Index]