Re: Equity release
- From: <me@xxxxxxxxxxx>
- Date: Sat, 19 May 2007 18:03:14 GMT
On 26 Apr 2007 14:34:09 -0700, peterwn <peterwn@xxxxxxxxxxxxxxx>
wrote:
On Apr 26, 6:11 am, <m...@xxxxxxxxxxx> wrote:
HiThis gets into areas of trust and equity.
I'm writing a book and in the plot a slightly dishonest equity release
firm has over valued a property so that it now has advanced more that
half the true value. Therefore it owns more than a 50% interest in the
property. Is there any way that a jealous neighbour could buy the
property on the cheap.?
It doesn't have to be water tight, only plausible.
For starters, it is worth noting that the 'registered' owner(s) of a
house (or oher property) are not always the 'beneficial' owners. Where
this occurs, a 'trust' situation exists whether intended or
otherwise. A wife could be a part 'beneficial' owner of a house
registered solely in a husband's name. Could even apply to a de-facto
relationship where one partner has contributed in some ways.
If a vendor in such situations makes reasonable and genuine endeavours
to sell the house for the best price there would not be a problem
(apart from the vendor having to account or any portion of proceeds to
'beneficial' owners. If a jealous neighbour happens to be the
successful purchaser then so be it.
The problem arises where a vendor (with the intention to deprive
beneficiaries of what is rightfully theirs) recklessly markets a house
at well below market value, or sells the house to a friend at a low
price. The Chancery Court (or Crown Courts etc sitting in Chancery
mode) will in such cases do what it can to compensate beneficiaries
for the breach of trust that has occurred. If the purchaser is
involved with the unconscionable conduct, the purchaser will have to
pay up. A purchaser would be protected in such cases if the purchaser
was a 'bona fide purchaser for value (ie not at a 'knock down' price)
without notice (ie unaware or cannot be expected to be aware of what
is gong on). Hence a purchaser is not necessarily a 'villan' in such
cases despite being obnoxious. In your case the jealous neighbour
for example could be the mistress of the managing director of the
equity release firm and hence could be wide open to legal action if
she bought the house at a knock down price.
The law of equity being what it is, there is great scope for an author
in this regard. If you have some understanding of this area of the
law (as Charles Dickens did - read 'Bleak House') your plot would be
quite plausable, even to lawyers.
Also try and work your way through 'Royal Bank of Scotland v Etridge'
at
http://www.publications.parliament.uk/pa/ld200102/ldjudgmt/jd011011/etridg-1.htm
it is not quite 'on target' but should give various clues (it is
effectively eight cases wrapped up into one).
Some cases can be quite hilarious when you dig under the dry
language. My favourite is Attorney-General for Hong Kong v Reid in
1994 (Privy Council) - this is an extreme example of 'trust', the Law
Lords really dished it out in this case. Sorry, I do not have a
citation, but it will be in the 'Appeal Cases' series which law and
major libraries will have.
Many thanks for this thought provoking reply. I pressed ahead anyway
because I didn't really expect a reply, but now I shall revisit the
issue.
I went ahead on the common sense basis that it was doomed as a scam
but might have some use as a device to influence some character in a
book of fiction. I thought that it was plausible enough to have a
really worried 82 year old lady who has a good friend come to stay in
her bungalow due to a fire in her own home. While staying there she
secretly makes representations to buy the bungalow out from under the
feet of her benefactor. The scheme is uncovered and there follows the
most awful row ending with the benefactor fling her guest's newly
ironed clothes through the kitchen door.
Isn't fiction wonderful!
Best wishes
.
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