Land Law

In the summer of 2014 Alison purchased the registered freehold to Sleepy Hollow for £280,000. Alison’s mother, Barbara, lived in France but provided the deposit of £28,000 for Sleepy Hollow, with Alison becoming the sole proprietor. Alison raised the remainder of the purchase price with a mortgage, which was arranged through Cantander Bank.

 

Alison gave Barbara a receipt to evidence her contribution to the purchase price and she always allowed Barbara to use the annexe at the back when she was in the UK.

 

A neighbour, Dev, has been given permission to use the shed at the rear of Sleepy Hollow during the winter, as he has nowhere dry to store his Harley Davidson.

 

Alison’s sister, Enid, really loves Sleepy Hollow. One night the girls had a night in and enjoyed a few glasses of wine. In that moment Alison promised that, were she ever to sell the house, she would give Enid a ‘good price’. They jokingly wrote this on the back of the Freshco receipt for the wine.

 

Alison now wishes to sell Sleepy Hollow, as she finds it too sinister and scary as a residence. A number of interested parties have offered her more than the market value of £320,000.

 

Advise Alison what her legal position is in relation to the rights of the other parties, and how those rights could/should have been protected. Additionally, consider to what extent a new buyer may be bound by those rights were she to sell Sleepy Hollow.

 

 

 

 

PART B

 

 

 

Question 1

 

In 2015 Andy inherited the registered freehold of 24 Kitty Corner, a four-storey townhouse, but the property felt too large for him to live in alone.

 

He decided to live on the ground floor and generate some income from the other floors. He made the following agreements:

  • Berni (Andy’s best friend) occupied the 1st floor in return for £200 per month for ‘1 year in the first instance’.
  • Carey occupied the top floor in return for payment of £800 per month for a term of 6 years. This was written on a piece of paper, which they both signed, and entitled ‘licence agreement’.
  • Denny lives on the 2nd floor and works as a chef in Andy’s restaurant nearby. Denny moved in to the house when he split from his partner and pays Andy £100 per week.

 

Andy has a key to the entire property but has ensured that he also has a copy of the keys for each floor’s separate entryway. He is a keen animal lover and has encouraged the others to have pets if they so wish. He occasionally uses his key to put out water and food for the pets and to take Berni’s dog for a walk.

 

Earlier this year he met Evan and they fell in love. He is now considering selling number 24 in order to move into a smaller property with him. Advise Andy as to whether he can sell the property free of the other parties’ interests or whether a future purchaser would be bound by any of the agreements he made.

 

 

 

 

 

 

 

 

 

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