Jane Steels v Darren Steels & Anor
[2023] EWHC 2985 (Ch)
Duncan McNiven v Isla Jane McNiven & Ors
19 July 2024
[2024] EWHC 1840 (Ch)
High Court
Brothers and sisters fought over their mom's house after she died. The judge decided the brother who'd helped pay the mortgage for years got the house, but had to give some money to the sisters because their mom also helped pay the mortgage later on.
Key Facts
- •Dispute between siblings over their late mother's property (138 Queen's Road, Tewksbury).
- •Mother died intestate.
- •Property purchased in 1982 jointly by mother, father, and claimant (Duncan).
- •In 1993, legal title transferred to mother's sole name due to Duncan's Finnish tax concerns; an agreement was made regarding Duncan's continued mortgage payments and eventual ownership.
- •Dispute over who paid the mortgages and the extent of Duncan's beneficial interest in the property.
- •Claimant argued proprietary estoppel.
Legal Principles
Severance of joint tenancy
Megarry & Wade, the Law of Real Property, 10th ed., §12-036
Proprietary estoppel
Thorner v Major [2009] UKHL 18; Winter v Winter [2024] EWCA Civ 699; Gillett v Holt [2001] Ch 210; Guest v Guest [2022] UKSC 27
Outcomes
Joint tenancy severed in 1993 due to agreement between Duncan and his mother.
The agreement constituted a course of conduct inconsistent with the continuing mutual intention to hold the property as joint tenants. Duncan's obligation to repay mortgages was conditional, indicating a change in the nature of the ownership.
Duncan retained a 50% beneficial interest in the property.
The 1993 transfer was solely for tax reasons, and Duncan continued to make mortgage payments, inconsistent with intending to gift his share.
Duncan's proprietary estoppel claim succeeded.
Mrs. McNiven made assurances that the property would be Duncan's, on which he relied to his detriment by paying the mortgage for many years. While Mrs. McNiven made some payments, Duncan's substantial contributions and the unconscionability of reneging on the promise justified the outcome.
Duncan entitled to the net proceeds of sale of No.138, less £13,310.
This deduction reflects the payments made by Mrs. McNiven towards the mortgages, balancing the equities between the parties.