Can the other party on a deed of trust deny me access to property (land)

[morgand]

Hi,

Hoping for some advice please. Some years ago I purchased a share in some land. My percentage is held on a deed of trust, but my name is not on the land registry. The other owner (ex partner), who's name is on the land registry, wants me to sell back my percentage, but they will only pay back the original payment sum, not allowing for inflation and improvements done to the land. So I am still considering this. I don't actually want to sell my share and instead just be given the percentage share I have paid for.

However I have received a letter from their solicitor, saying I am denied any access to the land and must remove any possessions from there in 28 days, or they will be removed and disposed of by their client and I will be charged for this. Already they have removed some of these items / used some of them. I am now allowed to access the land but only to remove my belongings.

A previous letter said I was completely denied any access to the land. I was only to be allowed on the land to remove my possessions, if I agreed to their financial proposal, otherwise they would be removed and I would have to pay for the removal.

Can you be denied access to land you partially own on a deed of trust ? Can the other party remove possessions from land I hold on a deed of trust ?

Is this legal, can they do this please ? I am trying to avoid confrontation and pointless aggravation on this.

Many Thanks

[atticus]

You refer to a deed of trust. Please confirm that there is a written agreement under which the owner holds a part of the interest in the land on trust for you.

What percentage is held on trust for you?

Do you have any idea of the market value of this land?


It may be that you only have an interest in the proceeds of sale of the land. In that event, you may not have rights to enter or use the land.

I would want to have an idea of the value of your interest in this land before suggesting ways forward, the idea being to be cost-effective.

[morgand]

Hi Atticus,
Thank you for replying. It was a declaration of trust. I hold 15% and the other person 85%. Its hard to accurately value it but my 15% is about 3.5 acres of land and 15% of a derelict house.
I have enclosed a copy of the declaration of trust.
This legal process of them approaching me to buy my share only started about 8 weeks ago, its not part of a long battle or anything. They have just been adversarial from the beginning. The very first letter I received stated that unless I sold my share in the property in 28 days, the sale would be forced through by the solicitors. I replied for clarification but they didnt answer back for over two weeks, leaving only a week for me to make up my mind. They havent yet forced the sale and just seem to be bullying me now.
Many Thanks

[atticus]

No. You own 15% of an interest in the whole 20-odd acres plus building, not any specified bit. If you have no idea of the value, you have no idea whether it's worth the fight.

Do you know when this land was bought, and the price at that time?

Is there a mortgage on it?

Looking at that document, you should be registered as a joint owner, and I would want to understand why you are not. Also, has a restriction been entered as per paragraph 3. Is there anything on any other pages?

Can you post the full land registry title entries, redacting title no, names, and the address of the property?

What would you like to achieve out of this?

[morgand]

Thank you Atticus, Appreciate your time on this. The land was bought in 2004 for £140,000. I would imagine that 15% of the total value would be about £45,000 now.
Its been a while but I remember signing a form in about 2007 or 2008 that may have removed me from the land registry. But I am not certain on this. I was self employed at the time and had got into some trouble with the HMRC for not deducting sub contractor payments at source and was in danger of going bankrupt. But I am not certain about this, as why wasn't I removed from the declaration of trust too.
There is no mortgage on it.
What I would like to achieve is,

1. To find out what my rights are and if I am able continue to be able to access and use the land in the immeadiate short term.
2. Am I still a tenant in common, even if I'm not on the land registry. And if I am what rights do I have.
3. Can I apply to be added to the land registry.
3. Find out, if the sale was forced by the other partner, if the court woud award me my percentage in actual land - best outcome for me would be for the other party to give me land equivalent to my share, which was always the unwritten deal, I have done considerable work there on that understanding.
4. If the sale is forced, do I or the other partner have to pay the court fees.

I'm realistic and dont want to start a huge legal battle, but that bit of land is very important to me and I would hate to loose it.

Best Regards Morgan

[atticus]

There appears to be a mortgage registered: Entries C2 and C3 are a charge to a building society. These entries are dated 2005.

The Title appears to have been registered in 2004. Entry B1, the proprietor's details, is dated 2005, so something happened then.

Entry B2 is interesting, and appears to prevent a sale by a sole owner without an order of the Court. Maybe someone else with greater knowledge can explain why that kind of restriction gets to be entered.

Assuming that the trust deed is still extant - and assumptions should be verified - then you would be entitled to 15% of net proceeds on sale.

Were you ever made bankrupt?

[morgand]

Thank you Atticus,
That is very informative and helpful, I have been trying to figure this out. Thank you again for your help. I very much appreciate it.

Do you think there are other pages to the declaration of trust, that have not been provided to me ?

That single page, was what I was sent by their solicitors, when I asked for clarification of what I was signing away. They were very reluctant to show it me.

Initially there was a small mortgage on the property. Which was later paid off by the other trustee, when I paid my lump sum to them.

I offered to transfer my 15% share to our son, and pay her an additional quite large sum of money, on the basis that I am allowed to continue using the land until my death. But she wouldn't accept that, so she clearly wants to sell it, I think.

Yes I was made bankrupt, not through defrauding anyone. Even though we were classed as agriculture and forestry, we were getting paid through the CIS scheme and I should have deducted 17.5% at source, so the Hmrc demanded all the tax I had ever paid subcontractors. If I coud have afforded it and got a tax accountant I would have probably have sucessfully contested it, as the person I was working with did. But it was a bit of a desperate time at the time.

Bearing in mind the information you have given me, do you think they are within their rights to deny me access to the land and threaten to remove my assets.

Best Regards

[atticus]

Your bankruptcy complicates things. Date of bankruptcy order, please.

[des8]

I thought that B2 Entry was used to indicate the property was owned as tenants in common, and prevented one owner selling the property without the authority of the other.
It alerts any buyer to the existence of other owners

[atticus]

I agree - I thought that the reference to a court order might make it unusual, but on checking I see that this is the standard Land Registry Form A restriction wording.

But Morgan's bankruptcy could well be a serious problem. A reminder that I have asked the date of the bankruptcy order.

[morgand]

Hi Atticus, Sorry to keep you waiting.
I think I went bankrupt in 2008 and was discharged less than a year later.
Best Regards

[atticus]

As I said, the bankruptcy complicates things.

You were made bankrupt in 2008. Your assets at that time included whatever interest you had at that time in this property.

All your assets at the date of the bankruptcy order vested in your trustee in bankruptcy (possibly the Official Receiver). That will NOT have changed on your being discharged from bankruptcy: discharge does not return those assets to you but leaves you free to start again.

Whether the OR is aware of this is another question. If he is, then he may well be sitting tight and awaiting a sale. The OR can play a long game.

[morgand]

Ha thank you Atticus. Thats worrying. Do the HMRC have an amnesty. Or agree to terms. Unlikely I suspect. Maybe I should just let it go. Gift it to my son and walk away. I didn’t pay for the share until after I went bankrupt, but I don’t suppose that makes any difference.

[atticus]

It may make a difference. If you estimate the 15% to be worth £45k, then it's worth a small investment in some advice.

[morgand]

Thank you Atticus. that is sage advice.
In the immediate term, do you think there is any basis in law for them stopping me accessing the land.
What are the typical costs associated with getting some good advice please ?