Ismael and Jovina are a married couple. They have two teenage sons.
Three years ago, Ismael and Jovina agreed with Ismael’s parents, Kaleb and Lukka, to
purchase a large house (‘the House’) in which they could all live. The purchase was funded by
Ismael and Kaleb. The House was conveyed to Ismael, Jovina, Kaleb and Lukka ‘to hold on
trust for themselves as equitable joint tenants.’
Two years ago, Kaleb encountered serious financial difficulties. Ismael wanted to help Kaleb,
so he agreed to purchase Kaleb’s interest in the House for £100,000. The agreement was made
in writing and signed by Kaleb and Ismael. Ismael paid Kaleb £100,000, but no further action
was taken in relation to the sale.
Ismael had borrowed £50,000 of the £100,000 he paid to Kaleb from his friend, Ymir. He
secured the loan by granting Ymir a mortgage of his interest in the House by deed.
Last year, Lukka died. By her will, she left all her property to Kaleb.
Ismael has not paid Ymir the last six loan instalments. Ymir intends to enforce his security.
The value of the House is £500,000, and the amount still owed to Ymir is £25,000.
Ismael and Jovina’s sons are due to take their GCSE exams in four months’ time.
Advise the parties:
(i) as to the legal and equitable ownership of the House when it was acquired;
[25 marks]
(ii) whether the events occurring after acquisition altered the legal and equitable
ownership of the House; and [45 marks]
(iii) whether Ymir is likely to obtain a court order for an immediate sale of the
House. [30 marks]
Three years ago, Ismael and Jovina agreed with Ismael’s parents, Kaleb and Lukka, to
purchase a large house (‘the House’) in which they could all live. The purchase was funded by
Ismael and Kaleb. The House was conveyed to Ismael, Jovina, Kaleb and Lukka ‘to hold on
trust for themselves as equitable joint tenants.’
Two years ago, Kaleb encountered serious financial difficulties. Ismael wanted to help Kaleb,
so he agreed to purchase Kaleb’s interest in the House for £100,000. The agreement was made
in writing and signed by Kaleb and Ismael. Ismael paid Kaleb £100,000, but no further action
was taken in relation to the sale.
Ismael had borrowed £50,000 of the £100,000 he paid to Kaleb from his friend, Ymir. He
secured the loan by granting Ymir a mortgage of his interest in the House by deed.
Last year, Lukka died. By her will, she left all her property to Kaleb.
Ismael has not paid Ymir the last six loan instalments. Ymir intends to enforce his security.
The value of the House is £500,000, and the amount still owed to Ymir is £25,000.
Ismael and Jovina’s sons are due to take their GCSE exams in four months’ time.
Advise the parties:
(i) as to the legal and equitable ownership of the House when it was acquired;
[25 marks]
(ii) whether the events occurring after acquisition altered the legal and equitable
ownership of the House; and [45 marks]
(iii) whether Ymir is likely to obtain a court order for an immediate sale of the
House. [30 marks]
