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Co-ownership and estoppel.

The editor of this section of the site is Samantha Jackson of 1 Chancery Lane, London.


Trustee in Bankruptcy

Equitable accounting

Davis (As trustee in bankruptcy of Jackson) v Jackson
[2017] EWHC 698 (Ch)

Summary

The Court considered the basis on which the proceeds of sale of a property held in joint names should be split between the trustee in bankruptcy of one joint owner, and the other joint owner. The Court held that sections 12 to 15 of the Trusts of Land and Appointment of Trustees Act 1996 had not replaced the doctrine of equitable accounting.

Facts

A husband (H) and wife (W) became estranged and lived apart. W re-mortgaged the property which she then owned, and in which she lived with her four children. This released a sum of money which she put towards the purchase of a second property (the Property). The remainder of the purchase price was borrowed on an interest-only mortgage. She then moved to the Property with her children. H had never lived at the Property.

W then executed a trust deed concerning the Property. This declared, among other things, that W held the Property on trust for herself and H in equal shares. W then paid all of the interest payments under the mortgage and all of the household costs alone. H never made any interest payments under the mortgage or any contribution towards the Property or its maintenance. After a relatively short period of time, W started to experience cash flow problems. The mortgagee obtained an order for possession of the Property. The Property was re-mortgaged with a new mortgage lender which required the title to the Property to be transferred into H and W’s joint names and for both of them to be liable for repayment of the new mortgage loan. The Land Registry TR1 form used to transfer the title to their joint names contained a box in which an “X” was inserted signifying that they held the Property on trust for themselves as joint tenants. After the re-mortgage, W continued to make all of the payments under the new mortgage and in respect of the running and up-keep of the Property. H paid nothing and never occupied the Pro ... THIS IS AN EXTRACT OF THE FULL TEXT. TO GET THE FULL TEXT, SEE BELOW

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