Questions:
Part 1: Co-ownership
Martin and Gavin, who are both mature students and who have known each other since
childhood, wished to buy a house to live in while at university. The intention is that the
property be bought for them both to live in and that it should be sold once the need for it had
come to an end. In their previous careers, they had each earned good money and were able to
save enough for a joint deposit of £50,000. To pay for the balance of the purchase price, they
each borrowed £100,000 from their respective families. When Martin’s parents, George and
Chris, gave him the money, they said not to worry about paying it back, although Martin is
keen that they should be protected if anything were to happen to him. Gavin’s parents
(Nicholas and Susan), on the other hand, expressly stated that they wanted a share of the
proceeds whenever the house was sold (at the latest, once both Martin and Gavin had finished
University).
Advise on the appropriate structure to reflect in law and in equity the various interests
involved.
Part 2: Family Trust
While in first year at university, both Martin and Gavin formed relationships, Martin with
Oliver and Gavin with Vanessa. Although the house was only a 3-bedroom property, with the
3rd bedroom being used as a study, both Oliver and Vanessa moved in to the property to
share with their respective partners. Oliver was an artist who was waiting for his big break.
He rarely had work and relied on his own parents to bail him out. With this sparing income,
from time to time he bought food and drink for the dinner table and was able to occasionally
pay his share of some of the bills for the household. Oliver also used his talents to help with
the decoration and general upkeep of the house. Vanessa was working and would regularly
pay for expenses incurred by Gavin and her. She also paid their share of the household bills
and would, on occasions when Gavin was without funds, help with his living expenses. She
was also a keen gardener and would regularly work in the garden.
Advise on the ownership issues likely to be faced by the 2 couples considering both legal
and equitable interests in the property should either of the relationships break down.
Part 3: Leases and Licences
At the end of the first year, Gavin and Vanessa decided to move out to have their own space.
They suggested that their room could be occupied by a friend they knew, Amanda, who
needed
accommodation for second year. They agreed that Amanda could move in anytime in
September before the new year began and that she could occupy it until after her exams in
June the following year. Martin and Oliver thought the arrangement was too informal and so,
on the day Amanda moved in, made her sign a document giving her a six-month period of
occupation. Amanda decided she wanted to become an influencer and, owing to her love of
music, began using her bedroom to record TikTok videos. This did not please Martin or
Oliver and they would like to tell her to leave.
, Advise on the nature of Amanda’s occupation and whether she can be made to leave.
Part 4: Covenants
The noise Amanda is making has attracted the attention of the neighbour, Tim, who has made
complaints to both Martin and Oliver, who let Gavin and Vanessa know. Tim’s solicitor has
also written to say that Tim has the benefit of a “no-noise” covenant, which prevents anyone
in the property from making excessive noise at any time. Martin and Gavin consult their own
solicitor who tells them that they have found the paperwork for a covenant made by their
predecessor, Steve, but that there does not seem to be evidence that it was ever registered.
Advise Martin and Gavin whether the covenant is enforceable.
ANSWERS
Part 1: Fixtures and Fittings
In Spring 2022, two couples: Sanjeev and Meera (Couple A) and Kulvinder and Nina
(Couple B) decided to leave London and look for somewhere in Wales. They had an idea that
they would buy a hotel together as a business venture and also as somewhere to live. Couple
A were experienced as hotel managers, while Couple B were restaurateurs. As such, they
looked for an ideal property with enough space for both couples to share as well as having
rooms for paying guests. They arranged to view an old manor house in the Brecon Beacons,
which cost £1,000,000 and appeared to meet their needs. On viewing the hotel prior to
purchase, both couples thought that the ornamental fireplaces, glass chandeliers and stained
glass windows it contained all combined to give character to the building. There was also an
ornate garden with many statues and giant palms in plant pots in it, which both couples
thought would make a nice place to relax in the evenings. There was also a large annexe in
which there was gym equipment and a jacuzzi. As both couples were impressed by the
property, they agreed to buy the hotel and instructed solicitors to carry out the conveyancing.
When they obtained the keys and prepared to move in, they discovered that all the items they
had viewed (fireplaces, chandeliers, stained glass windows, statues and plant pots, gym
equipment and jacuzzi) had been taken away (presumably by the seller) and were missing.
Advise on the status of the items noted and whether the seller was entitled to take them
away.
(532 words)
The seller should have given both couples a TA10 Fixtures and Fittings Form which states
which items are being kept due to being fixtures and which are not due to being fittings. This
contract would then be signed by the parties to avoid confusion like this.
