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Will I Be Compensated if I Am Excluded From a Shared Home?

on Monday, 06 December 2021.

A recent Court of Appeal case shows compensation may be awarded to a joint owner of a holiday home for loss of opportunity if they are prevented from accessing the property by their co-owner.

Background

Dr Rowland and Ms Blades began a relationship in 2006. In 2008, the couple bought a property to be used for weekends and holidays for £1.5 million. Despite Dr Rowland paying the entire purchase price, the parties bought the property in joint names and had no declaration of trust put in place.

In 2009, the parties' relationship broke down and Ms Blades requested that Dr Rowland not attend the holiday home with his new partner.

In 2020, Dr Rowland brought a claim against Ms Blades for:

  • A declaration that he owned 100% of the equity in the holiday home.
  • £288,000 compensation for the period where Ms Blades enjoyed sole use of the property to Dr Rowland's exclusion

However, the court held that the parties each owned 50% of the equity, and ordered the property to be sold with the proceeds divided equally. With regards to Dr Rowland's compensation for his exclusion of the property, the court awarded him £60,000.

Recently, Dr Rowland has appealed this decision, requesting that the compensatory sum is increased to £216,000. Jarman HHJ ruled that Dr Rowland had not suffered a financial loss, but had instead lost the opportunity to enjoy the use of the holiday home and therefore, increased the award from £60,000 to £120,000.

 

Why Is This Case Important?

This case demonstrates that if a relationship breaks down and one partner is excluded from the property, they may be entitled to compensation.

Furthermore, this case should be taken as a reminder of the importance to enter into a declaration of trust when purchasing a property as an unmarried couple, particularly if you are contributing unequal amounts. A declaration of trust records the share of the property each party owns and states what should happen in various circumstances.


If you have any questions on this complex area or would like help drafting a declaration of trust, please a member of our Private Client team on 0117 314 5298, or please complete the form below.

 

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