PART A
Question 1:
In 2010, Jash purchased Lavender Cottage, together with a barn on a large plot of land in Wiltshire, with the help of a mortgage from the Bristol Bank plc. Five years later, Jash married Lola who moved into the Cottage with him and began paying half of the mortgage payments and utility bills.
In 2017, Jash sold some of his land to Jane and Freddy to build a new home. Jash agreed to the sale, subject to the inclusion of a right of access (for cars and pedestrians only) for Jash and Lola to access the Cottage from the road, and a promise that only 1 dwelling house would be built on the plot of land. These terms were included in an agreement prepared by Jash’s solicitor, which they all signed.
Last week in the village pub, the Drunken Duck, Jash agreed to rent the barn to a neighbour, Pete, to store farm machinery for 2 years at market rent of £1,000 per month. Pete was delighted and moved the machinery in at the weekend.
Advise Jash, Lola, Bristol Bank plc, Jane and Freddy (together), and Pete of their estates or interests, how they should be created and whether they need to be protected by registration.
Question 2 :
Karim and Asia purchased their dream home in Battersea in 2010, with the help of a 25-year legal mortgage from Floyds bank plc. They have been experiencing severe financial difficulties as both lost their jobs during the spring Covid-19 lockdown and are struggling to keep up with their mortgage payments.
They are currently 8 months in arrears and Floyds Bank have just sent them a letter advising Karim and Asia that they now have ‘no choice but to take serious measures’.
Karim and Asia have just started a new small online business, from their home and would like to be able to stay in their home.
Advise Karim and Asia (together) as to what steps the bank can take to repossess and sell the property; what steps Karim and Asia can take to prevent repossession and sale by the bank; and any other steps the bank should be taking in relation to their debt management.