In the summer of 2018 Adele purchased the registered freehold house called La Plage, in Bournemouth for £450,000. Adele’s mother, Beverley, lived in Italy but provided the deposit of £45,000 for La Plage, with Adele becoming the sole proprietor. Adele raised the remainder of the purchase price with a mortgage, which was arranged through Cantander Bank.
Adele gave Beverley a receipt to evidence her contribution to the purchase price and she always allowed Beverley to use the annexe at the back when her mother was visiting the UK.
A neighbour, Deepak, has been given permission to use the shed at the rear of La Plage until the restoration of his garage, as he has nowhere dry to store his Harley Davidson.
Adele’s brother, Chris, really loves La Plage. One night the siblings had a night in and enjoyed a few glasses of wine. In that moment Adele promised that, were she ever to sell the house, she would give Chris a ‘good price’. They jokingly wrote this on the back of the supermarket receipt for the wine.
Adele now wishes to sell La Plage, as she finds it too sandy as a residence. A number of interested parties have offered her more than the market value of £530,000.
Advise Adele what her legal position is in relation to the rights of the other parties (Cantander Bank, Beverley, Deepak, Chris), 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 La Plage.
Aleem and Barrie bought their dream house, Sunbeam Cottage in 2010, with the creation of a mortgage to Bonclays bank. In 2015 Barrie wanted to try opening an Art School. She had a conversation with Aleem, where she said she needed his support in the endeavour and that otherwise she would be eternally unhappy and unfulfilled. Aleem, feeling somewhat pressured, said that he would agree to a second mortgage on the house but that someone had advised him to get some financial advice first.
Barrie sent her cousin, Caz, who is a mortgage advisor, to advise Aleem that it was not that bad an idea and he signed for the second mortgage with Southern Stone bank.
Unfortunately, Aleem and Barrie have been experiencing financial difficulties and they are struggling to keep up with both mortgage repayments as Sunbeam Cottage was in too remote an area for students to regularly attend. As a result, they have missed 3 months’ worth of mortgage payments.
Their second bank, Southern Stone, have sent them a letter, telling them that there will be ‘no choice but to take serious measures’ in the event of continued non-payment.
Aleem and Barrie are concerned and come to you for advice.
Please advise them as to:
i. what steps the bank can take against them in relation to the repossession and sale of the property to satisfy the debt,
ii. what they can do if they would like to remain in the property and pay off their arrears, and
iii. whether any defences are available to either of them in such an action.