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Lloyds Bank Plc v Rosset From Wikipedia, the free encyclopedia

Lloyds Bank Plc v Rosset is an important case in English property law dealing with the rights of cohabitees. The case establishes that contributing to the cost of running a house does not, in itself, create a beneficial interest. [1]

Contents

1 Facts 2 Law 3 See also 4 References

Facts Mr & Mrs Rosset bought a derelict property with the proceeds of a trust fund set up for Mr Rosset, one of the stipulations of which was that the property must be conveyed into the husband's name alone. Unbeknown to Mrs Rosset, Mr Rosset then took out a loan secured against the property, and when he became unable to repay that loan, Lloyds Bank sought to take possession of the property. At this point Mrs Rosset asserted that she had an overriding interest in the property and that the bank had to take account of this beneficial interest which arose as a result of her contributions to the property.

Law Lord Bridge of Harwich sought to define the two distinct ways in which the courts would recognise a beneficial interest in property as a result of common intention, but where one partner did not have legal title to the property. He said the interest can be based on "express agreement, arrangement or understanding", or it can be, "where there is no evidence to support a finding of an agreement or an arrangement to share... the court must rely entirely on the conduct of the parties both as the basis from which to infer a common intention to share the property beneficially... in this situation, direct contributions to the purchase price by the partner who is not the legal owner... will readily justify the inference necessary" [2]

Therefore there were two methods for demonstrating common intention for the property to be held jointly - the first being express intention, and the other being through conduct - which would be found in the direct contribution of money to the purchase price or to the repayment of a mortgage concerning the property.

See also Stack v Dowden Common intention (Property law)

acquisition of beneficial interests in land.