English Property Law (UK)

Question 1

Amber and Greg purchased the freehold of a large 5 bedroomed house in Stevenage in 2019 for £750,000. The purchase was financed by Amber and Greg who paid the deposit of £100,00 and a mortgage from Island Mortgages for the balance of £650,00.

Six months ago, Greg was forced to give up his career as a professional rugby player after he broke his leg very badly in a car accident. Amber has only been working part-time as a beauty therapist for the last few months as she is trying to pursue her dream of becoming an actor and is currently studying on a performing arts course. As a result, their income has reduced substantially, and they have not paid their mortgage repayments for the last three months. Greg is hopeful of becoming a full- time rugby coach and has been on a coaching course to enable him to get a position. He has an interview with a rugby club next month. Amber has been invited to audition for a part in a new musical in a West End theatre starting in September 2020.

Island Mortgages have recently written to Amber and Greg, informing them that as they are in arrears with their mortgage repayments Island Mortgages are going to start court action to repossess the house in the next seven days.

Due to the uncertainty surrounding Brexit, property prices have fallen, and the house is now only worth £550,000. Greg’s former team mate, Ovie, has offered to buy the property for £500, 000 but Island Mortgages say this is insufficient and will not agree to the sale.

Advise Amber and Greg of any remedies Island Mortgages have to realise their security and any remedies Amber and Greg might have.

Question 2

In June 2000 Tariq the freehold owner of a house at no 10 Victoria Street granted a lease by deed to Melanie of the ground floor flat in the house, for 99 years at a rent of £100 per month. The lease contained a covenant by Tariq to keep the exterior of the house in good repair. It also included a covenant that prohibited the tenant using premises for business purposes and a further covenant that the lease could only be assigned or sub-let with the landlord’s consent. The lease contains a forfeiture clause.

In January 2010, Melanie assigned the lease to Lorcan, with Tariq’s consent and in January 2014 Tariq sold the freehold of no 10 Victoria Street to Seamus.

Lorcan is a personal trainer in a gym and supplements his income by providing private personal training in a makeshift gym in his flat. The occupants of the other flats have complained to Seamus about the number of visitors to the flat in the evenings and weekends and the parking problems this causes for the occupants.

Lorcan has also not paid any rent since January 2019. When Seamus chased him for the rent Lorcan refused to pay until Seamus replaces the PVC windows which have become mouldy with condensation. Lorcan says this has aggravated his asthma.

Advise the parties. How would your answer differ if the lease had been granted in June 1995?

The word count has to be about 2800-3000 words