Question 1
In 2010, Jash purchased Lavender Cottage, together with a barn on a large plot of land in Wiltshire, with the help of a mortgage from the Bristol Bank plc. Five years later, Jash married Lola who moved into the Cottage with him and began paying half of the mortgage payments and utility bills.
In 2017, Jash sold some of his land to Jane and Freddy to build a new home. Jash agreed to the sale, subject to the inclusion of a right of access (for cars and pedestrians only) for Jash and Lola to access the Cottage from the road, and a promise that only 1 dwelling house would be built on the plot of land. These terms were included in an agreement prepared by Jash’s solicitor, which they all signed.
Last week in the village pub, the Drunken Duck, Jash agreed to rent the barn to a neighbour, Pete, to store farm machinery for 2 years at market rent of £1,000 per month. Pete was delighted and moved the machinery in at the weekend.
Advise Jash, Lola, Bristol Bank plc, Jane and Freddy (together), and Pete of their estates or interests, how they should be created and whether they need to be protected by registration.
Question 2
Ash and his wife Mattie purchased a large run-down house in 2016 which they refurbished and separated into 4 flats to generate income. They purchased the property in joint names and currently live in the basement flat.
The attic flat is currently rented to Alex, a friend of Ash. He has lived in the attic flat since 2017, when he separated from his partner and pays full market rent of £300 per month.
Dev lives in Flat 2 and pays full market rent of £500 per month. He has lived in Flat 2 since 2 January 2018, having agreed a term of 6 years. Ash and Mattie’s solicitor prepared the documentation which was appropriately executed.
Bill and Ben live in Flat 1 and pay market rent of £550 per month. They have a written Licence Agreement with Ash and Mattie to rent the flat for 4 years but are not allowed visitors after 10pm, as they live immediately above Ash and Mattie. Mattie also provides a weekly cleaning service for Bill and Ben, including provision of clean sheets and towels and taking out rubbish.
Ash and Mattie retain the keys to all of the flats, for use in an emergency.
Advise Ash and Mattie (together), Alex, Dev, and Bill and Ben (together) as to their legal position in relation to any estates or interests they hold.
Question 3
Karim and Asia purchased their dream home in Battersea in 2010, with the help of a 25-year legal mortgage from Floyds bank plc. They have been experiencing severe financial difficulties as both lost their jobs during the spring Covid-19 lockdown and are struggling to keep up with their mortgage payments.
They are currently 8 months in arrears and Floyds Bank have just sent them a letter advising Karim and Asia that they now have ‘no choice but to take serious measures’.
Karim and Asia have just started a new small online business, from their home and would like to be able to stay in their home.
Advise Karim and Asia (together) as to what steps the bank can take to repossess and sell the property; what steps Karim and Asia can take to prevent repossession and sale by the bank; and any other steps the bank should be taking in relation to their debt management.
