BAILII is celebrating 24 years of free online access to the law! Would you consider making a contribution?
No donation is too small. If every visitor before 31 December gives just £1, it will have a significant impact on BAILII's ability to continue providing free access to the law.
Thank you very much for your support!
[Home] [Databases] [World Law] [Multidatabase Search] [Help] [Feedback] | ||
England and Wales High Court (Chancery Division) Decisions |
||
You are here: BAILII >> Databases >> England and Wales High Court (Chancery Division) Decisions >> Fantini v Scrutton & Ors [2020] EWHC 1552 (Ch) (19 May 2020) URL: http://www.bailii.org/ew/cases/EWHC/Ch/2020/1552.html Cite as: [2020] EWHC 1552 (Ch) |
[New search] [Printable PDF version] [Help]
IN THE BUSINESS AND PROPERTY COURTS
PROPERTY, TRUSTS AND PROBATE LIST
Rolls Building 7 Fetter Lane London EC4A 1NL |
||
B e f o r e :
____________________
ANTHONY ROBERT FANTINI | ||
(as Executor of the Estate of Iris Mary Fantini deceased) | Claimant | |
-and- | ||
(1) ANGELA MARY SCRUTTON | ||
(2) ROBERT MARK ANDREW NESBITT | ||
(as Personal Representatives of the Estate of Gloria Natalie Fantini Deceased) | ||
(3) THE ROYAL COLLEGE OF MUSIC | ||
(4) THE FOUNDATION AND FRIENDS OF THE ROYAL | ||
BOTANIC GARDENS, KEW | ||
(5) EILEEN WHEELER | ||
(6) SHIRLEY BRAILEY | ||
(7) IAN MAYES | ||
(8) VALERIE CANNON | Defendants |
____________________
Lower Ground, 18-22 Furnival Street, London, EC4A 1JS
Tel No: 020 7404 1400
Web: www.epiqglobal.com/en-gb/ Email: [email protected]
(Official Shorthand Writers to the Court)
THE DEFENDANTS did not appear and were not represented
____________________
Crown Copyright ©
THE MASTER:
The Parties.
The Factual Matrix.
"I, Gloria Natalie Fantini of 31 Sailmakers Court, William Morris Way, Fulham, London SW6 2UX, your fellow joint tenant at law and in equity of the property known as7 Merlin Way, Christchurch, Dorset, BH23 4BL and registered under title number HP26213 give you notice pursuant to the Law of Property Act 1925 Section 36(2) that I desire to sever our joint tenancy in equity, so that as from the date of the this Notice you and I shall hold the property on trust for sale for ourselves as tenants in common in equal shares as if there had been an actual severance."
"We enclose herewith Notice of Severance of the Joint Tenancy in respect of which if you have any queries, please do not hesitate to contact us."
The Law.
"No severance of a joint tenancy of a legal estate, so as to create a tenancy in common in land, shall be permissible whether by operation of law or otherwise, but this subsection does not affect the right of a joint tenant to release his interest in the other joint tenants, or the right to sever a joint tenancy in an equitable interest whether or not the legal estate is vested in the joint tenants:
Provided that, where a legal estate (not being settled land) is vested in joint tenants beneficially, and any tenant desires to sever the joint tenancy in equity, he shall give to the other joint tenants a notice in writing of such desire or do such other acts or things as would, in the case of personal estate have been effectual to sever the tenancy in equity, and thereupon the land shall be held in trust on terms which would have been requisite for giving effect to the beneficial interests if there had been an actual severance."
Any notice required or authorised by this Act to be served shall be sufficiently served if it is left at the last-known place of abode or business in the United Kingdom of the lessee, lessor, mortgagee, mortgagor, or other person to be served, or, in case of a notice required or authorised to be served on a lessee or mortgagor, is affixed or left for him on the land or any house or building comprised in the lease or mortgage, or, in case of a mining lease, is left for the lessee at the office or counting-house of the mine.
"Any notice required or authorised by this Act to be served shall also be sufficiently served, if it is sent by post in a registered letter addressed to the lessee, lessor, mortgagee, mortgagor or other person to be served, by name, at the aforesaid place of abode or business, office or counting-house, and if that letter is not returned by the postal operator (within the meaning of Part 3 of the Postal Services Act 2011) concerned undelivered; and that service shall be deemed to be made at the time at which the registered letter would in the ordinary course be delivered."
The Claim
(1) Severance of the Joint Tenancy
"It has been suggested that a mere declaration to sever by one joint tenant will affect a severance under this head. However, the better view is that such an act is insufficient and this method of severance is successful only where a joint tenant alienates his interest or in some other way acts so that there is a change in his equitable interest in the property."
"I am writing as a Member of the Council of the RCM [Royal College of Music] but I am also a practising solicitor and partner at Farrer & Co."
He goes on to say at the fourth paragraph:
"In your letter of 20th June addressed to the RCM you have set out your understanding of the facts relating to the intended severance of the joint tenancy of 7 Merlin Way, Mudeford. I do not believe that the RCM is in possession of any other information or evidence relating to those events. Nevertheless, whilst I note your view on whether the events concerned constituted notice of the joint tenancy being severed, the Royal College of Music does not accept that the events concerned necessarily preclude the effectiveness of what was clearly an intended severance on the part of Gloria. In particular, whilst it appears that the notice of severance which was sent to Iris Fantini by Morrisons on behalf of Gloria on 5 December 2013 by "Registered Post" was returned "undelivered" to Morrisons on 3 January 2014, nevertheless, it appears probable that the Land Registry's notice to Iris Fantini, dated 11 December was received prior to Gloria's death and was sufficient evidence of Gloria's intention to effect a severance. It is also apparent from the case law on the severance of joint tenancies, most recently Chadda v HMRC [2014] UKFTT 1061 the courts have interpreted LPA 1925 s.196 increasingly liberally in order to give effect to a severance where one was clearly intended."
"I concur with the views expressed in the letter from RCM and, so far as I am aware, we cannot assist in shedding any more light on the severance of the joint tenancy by Gloria Fantini."
39. In Chadda v HMRC [2014] UKFTT 1061 the husband and wife were both terminally ill and decided to make new wills to ensure that after H's death there would be as much money as possible available to provide care for W and their disabled daughter. The accountancy firm who had acted for them for many years gave advice on the tax advantages of using both of their inheritance tax nil rate bands by severing the joint tenancy of their home. C was a partner in the accountancy firm and an executor under their wills. H died first. On W's death HMRC treated the full value of the property as falling into her estate, the signed notice of severance having been lost. C's evidence was that the notice of severance was signed after the will had been executed because his firm were checking with the bank, who held the deeds, to see if the joint tenancy had already been served. C had attended the parties' home and going between separate rooms had handed the notice to H and then W to sign. The notice was supposed to be sent by a member of staff to the bank, however the bank suggested that it remain at the accountancy firm. Reviewing the evidence it was accepted that the original document had been signed by H and W but lost when in the hands of the accountancy form. A draft document, extracted from the firm's records, was in the same form as the signed notice. It was accepted that there had been severance by H or W giving the signed notice to the other through C.
"I am the applicant's conveyancer and I certify that I hold the original notice of severance, and that it was served on the other registered proprietors in accordance with sections 36(2) and 196 of the Law of Property Act 1925."
"I am writing to inform you that we have received an application by Gloria Natalie Fantini to 'sever the joint tenancy', being one of the joint proprietors of the property referred to above."
"As a result of the application we have made the following entry in the register of the above title:
RESTRICTION No disposition by a sole proprietor of the registered estate (except a trust corporation) under which capital money arises is to be registered unless authorised by an order of the court."
"You and Gloria Natalie Fantini remain the registered proprietors of the property referred to above and together you may still sell or otherwise deal with it in the usual way. However, as a result of the entry of the above restriction on the register, the position will now be different if one or more of the proprietors dies, so that only one proprietor is left.
Please read the explanatory notes which form part of this notice."
"Where proprietors hold the property as tenants in common, they own it together, but each is treated as having a separate share in the value of the property. Typically, each tenant in common will share in the value of the property equally according to their number; a half share if there are two and a one-third share if there are three and so forth."
"Where two or more proprietors hold property as joint tenants it is possible for them to alter the way in which they hold the property so that they become tenants in common. This will happen, for example, if one of the proprietor(s) sells or otherwise deals with his/her interest in the property, or notifies the other proprietor(s) that he/she wants the property to be held by them as tenants in common. This is called severing the joint tenancy."
"The purpose of the restriction is to safeguard the rights of the people who may have an interest in the property but who are not themselves proprietors (such as those to whom property has been left by a proprietor who has died)."
"With the restriction on the register, you and the other proprietors of the property acting together will still be able to deal with the property in any way you could before the entry was made. However, if one or more of the proprietors dies, so that only one of them remains, the restriction will mean that we will not be able to register any transfer or other dealing with the property for money. In practice it means that the remaining proprietor would not be able on his or her own to sell, mortgage or otherwise deal with the property for money, because the restriction would stop registration. The remaining proprietor would then need to arrange for at least one other person to become joint proprietor(s) of the property and to act with him or her as a trustee. Then, for example, a purchaser could safely complete a purchase because a transfer would be by two or more proprietors, so the restriction would not prevent registration."
(2) Should the claimant's costs of the claim be met from the remaining proceeds of sale of the property?