In November 2019, Annie and Troy jointly purchased a home for £400,000. They paid half each towards the purchase of the property, but only Annie was registered as a proprietor.

In March 2022, Troy’s parents moved to New Zealand. Annie encouraged Troy to fly out with them and spend a few months with them to help them get settled. In that time, Annie took the opportunity to mortgage the home to Greendale Bank, to raise £300,000 to set up her own business. Before the loan was granted, Greendale Bank sent round a surveyor. Annie made some effort to tidy away Troy’s personal effects but there was an outbuilding in the garden with a sign on it saying “Annie and Troy’s gym”. The surveyor made no enquiries about this and the loan was subsequently granted.

On his return, Troy was upset with Annie’s decision to mortgage the home but he supported her business and, through payment to their joint account, he contributed half to the repayments of the loan. Unfortunately, in July 2024 Annie’s business started to struggle, and they began failing to make repayments to Greendale Bank in September 2024.

The property is now worth £500,000. The balance on the loan from Greendale Bank is £270,000.

Which of the following identifies the most likely configuration of the beneficial interest in land?

Question

In November 2019, Annie and Troy jointly purchased a home for £400,000. They paid half each towards the purchase of the property, but only Annie was registered as a proprietor. 
 
 In March 2022, Troy’s parents moved to New Zealand. Annie encouraged Troy to fly out with them and spend a few months with them to help them get settled. In that time, Annie took the opportunity to mortgage the home to Greendale Bank, to raise £300,000 to set up her own business. Before the loan was granted, Greendale Bank sent round a surveyor. Annie made some effort to tidy away Troy’s personal effects but there was an outbuilding in the garden with a sign on it saying “Annie and Troy’s gym”. The surveyor made no enquiries about this and the loan was subsequently granted. 
 
 On his return, Troy was upset with Annie’s decision to mortgage the home but he supported her business and, through payment to their joint account, he contributed half to the repayments of the loan. Unfortunately, in July 2024 Annie’s business started to struggle, and they began failing to make repayments to Greendale Bank in September 2024.  
 
 The property is now worth £500,000. The balance on the loan from Greendale Bank is £270,000. 
 
 Which of the following identifies the most likely configuration of the beneficial interest in land?

Answer

Troy contributed half of the mortgage repayments, so could be entitled to half of what has been repaid so far

Answer

Troy could be entitled to an interest in the property, but it would be minimal as he was not registered as a proprietor

Answer

Annie would be entitled to 100% of the beneficial interest as she is the sole proprietor

Answer

Troy could be entitled as a beneficial joint tenant, given the joint finances, and shared contributions to the purchase price

Crowdly

In November 2019, Annie and Troy jointly purchased a home for £400,000. They pai...

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