TOLATA Claim Settled At Mediation

Shilpa Mathuradas

Complex TOLATA claim settled after an extensive mediation

We recently settled at mediation, a complex TOLATA case involving a dispute between a mother and daughter over the beneficial ownership of two properties – Property A and Property B. The dispute related to what each party’s respective financial interest was in each property having regard to each of their capital contributions, mortgage payments and receipt of rental income.

Property A

Property A was inherited by our client’s mother following the death of her partner and our client’s father. Our client’s mother was living in Property A and found herself in financial difficulty. She needed to release equity in Property A but was unable to obtain a mortgage in her own name. Our client agreed to joint liability on a mortgage of Property A. In return, she was given some of the equity raised to invest in a second property. There was a Declaration of Trust in place which indicated that Property A was held on trust as to our client 99% and her mother 1%. Our client’s mother disputed this and argued Property A was only put into their joint names to avoid claims by her late partner’s brothers.

Property B

Our client and her family were residing in Property B. Our client paid the deposit using her share of the monies raised on Property A. The parties agreed that it was purchased as an investment property in their joint names. Our client had also paid half of the joint mortgage and therefore claimed 61.5% beneficial interest and any surplus notional rent over and above he running costs. Our client’s mother argued that Property B was purchased for her alone for her pension and that she had paid the deposit and that all rental income over and above the mortgage payments belonged to her. She further maintained that our client’s only return would be 50% of the uplift in Property B’s value in 2023 when Property A’s mortgage was discharged.

Osbornes is instructed

Osbornes were instructed by the daughter in the midst of the case when our client’s instructing solicitor, a sole practitioner, fell ill and could no longer continue with the case. We considered it important to push for a stay of proceedings to allow the parties to pursue alternative dispute resolution as proceedings had been issued but mediation had not yet been arranged by either party.

Mediation and agreement

After a lengthy day and a mediation that extended late into the evening, with extensive negotiations, the parties reached an agreement for a clean break. Under the terms of the settlement, our client’s mother retained sole ownership of Property A, while our client assumed sole ownership of Property B, agreeing also to pay her mother a lump sum. Each party is now responsible for the payments and obligations relating to their respective properties.

How we can help

Osbornes can assist parties to successfully navigate litigation as well as consider alternative methods to achieve a settlement. Contact our experienced property litigation solicitors by:

• Filling in our online enquiry form; or
• Calling us on 020 7485 8811