Equity and Trust

Order Description Problem Question Isabella and Harry jointly own Ivy House, which they purchased in 2014 for £500,000 of which £100,000 was contributed by Harry and £150,000 by Isabella. £200,000 was also provided by Harry’s mother, Imogen, from the sale of her own house. The balance purchase monies were provided from a mortgage in Harry’s sole name. The mortgage payments were paid jointly by Isabella and Harry. They have two children aged 2 and 5. Having sold her home Imogen moved in with Isabella and Harry and started to work part time so that she could help care for the children. Imogen paid £100,000 for a new conservatory and kitchen which as a successful interior designer she designed, and project managed. Imogen, also completely renovated the interior of the house which included some new furniture and soft furnishings amounting to £70,000. In 2015 Imogen obtained a loan to extend the house providing an additional wing which substantially increased the market value of the house. Imogen made generous contributions to the utility bills and food. All the renovations were completed by early 2016. The property is now worth £1.8m Isabella and Harry recently separated and have agreed to sell the house. Isabella has asked Imogen to leave which she has refused to do. Advise the parties in relation to their interests in Ivy House. In your advice include reference to relevant authorities throughout.