Demands for rent on unrentable property

[Guest]

Hi all,

I'll keep this simple:

An estate in Ipswich with two executors is going through court to be sold. Executor 1 is maintaining property and is being accused of living in/using the property by Executor 2. Executor 2 is demanding rent for the last 2 years. The estate in question is totally unrentable (following advice from professionals): no hot water, heating, and the property is basically dilapidated/falling down. It's definitely not a property anyone would want to live in its current state!

Executor 2 wants to genuinely claim occupational rent from Executor 1. Does Executor 2 have a genuine claim? Can anyone point me in the direction of more info/Acts relating to this?

Thanks,
Benjamin

[luxardo]

It's possible yes. Look at it this way. If 2 people were left some money in a bank account and one of them took all the interest from the account before the money was divided up, the other one would want a share of it wouldn't they ? Same thing really here. If one of them is getting a benefit that the other is not then the second one is entitled to compensation. The fact that the place is unrentable is irrelevant, they are still getting a benefit, free accomodation. It would have to go court to decide this if the parties could not agree and the legal fees will mount up.

[des8]

Is executor 1 actually living there, or just visiting to maintain the property?
Has executor 2 been denied access to the property?

Are executor 1's costs of maintenance being met by the estate?

[ChickenRun]

Thank you both for your speedy responses - much appreciated.

To provide some extra info: Executor 1 is*not*living at the property. It's worth saying that Executor 2 is particularly money hungry and will pursue any excuse to obtain additional funds for themselves, even routes that are simply not true. It will come down to one word against the other's.*

Luxado - is this a personal view or a genuine legal position? Executor 2 is not losing out. The house has not sold naturally because the market is poor. The house is unrentable so Executor 2 has not lost the opportunity to rent out the property for those three years either. To say Executor 1 is benefiting from the occasional use of a dilapidated, unsafe, uncomfortable property is a little confusing to be honest, especially when they themselves own a comfortable, well-equipped house with full amenities. To be absolutely clear, the property in question is*not Executor 1's residence.*

Des8 - thank you for your questions. Here are the other answers:
Executor 2 has not been denied access to the property. They have full access, and are able to visit the property as often as they wish. There's nothing to stop them from maintaining the property in the same way, they just don't want to have the trouble nor the discomfort.*
No funds are being drawn from the estate for this maintenance.

Given all of the above, are you able to further advise? In particular, what legislation exists on this matter?

Thanks,
Benjamin*



*

[des8]

So executor 2 can jog on.*
The right to occupation rent arises when one owner is**actually or constructively excluded from his or her property, so in this case there can be no claim.

On the other hand executor 1 might have a claim for a proportion of his outlay in maintaining or improving the property!

This is all under the heading of "equitable accounting" which revolves round*the use of the proceeds of sale of a jointly owned property (whether owned as joint tenants or tenants in common) to meet personal obligations that have arisen between the owners. (cf**Lord Justice Griffiths in*Bernard v Josephs*[1982] 1 Ch 391 at 405)

[luxardo]

Yep, totally agree with Des8. He's not living there so is receiving no benefit and*there is no loss incurred. I'd keep a close*record of what maintenance is actually being carried out and it's cost though.

[ChickenRun]

Thank you both - your replies are very much appreciated.

If I can tap further into your expertise and ask two more questions:
1) I can only find occupation rent cases and legislation in relation to couples and property. Does this still apply for Executors (who are blood relatives)?
2) Is there further protection for Executor 1 in any legislation relating to basic rental standards (just intrigued as to how occupation rent, in theory, can bypass poor housing standards)

Thank you,

Benjamin

[des8]

Good point
As trustees they are not entitled to the equity ie no beneficial interest in the property and so have no right to occupation rent anyway