Property

Breach of Property Contracts and Conveyancing Disputes

Samuel Okoronkwo Jr

CLIENT ADVISED ON BENEFICIAL INTEREST CLAIM UNDER TOLATA 1996

Facts

The client has resided at a property in the Lower Belvedere area since 1994. Initially a tenant, the client contributed £10,000 in cash toward the property’s purchase in 2002 alongside a mutual acquaintance. However, only the acquaintance was registered as the legal owner. The client continued to make monthly payments toward the mortgage and bills, and has lived at the property with his family since 2010. Over time, the legal owner increased the payments and later demanded a substantial rent increase, which the client refused.

Issues

The client seeks recognition of a beneficial interest in the property based on his financial contributions and long-term occupation. The legal owner disputes this and has demanded increased rent, asserting that the client has been living in the property without proper compensation.

Advice and Solution

Counsel, Mr. Samuel Okoronkwo Jr, advised that a claim under the Trusts of Land and Appointment of Trustees Act 1996 (TOLATA) may be viable, contingent on proving the initial £10,000 contribution. If successful, the client could assert ownership of more than 50% of the beneficial interest. Counsel recommended drafting two letters: an open letter asserting the client’s beneficial interest, and a without prejudice letter offering to buy out the other party’s share based on a fair valuation. The client indicated readiness to pursue the matter and confirmed availability of £150,000 to support a settlement. Counsel advised against unnecessary legal expenditure and emphasised the importance of resolving the dispute amicably.

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