A recent case before the Court of Appeal shows compensation may be awarded to a joint owner of a holiday home for loss of opportunity if they are prevented from accessing the property by their co-owner.

In 2008, Dr Rowland and Ms Blades bought a property to be used for weekends and holidays for £1.5 million. Despite Dr Rowland paying the entire purchase price, the parties bought the property in joint names and had no declaration of trust put in place.

In 2009, their relationship broke down and Ms Blades requested that Dr Rowland not attend the holiday home with his new partner.

In 2020, Dr Rowland brought a claim against Ms Blades for:

  • a declaration that he owned 100 per cent of the equity in the holiday home
  • £288,000 compensation for the period where Ms Blades enjoyed sole use of the property and he was excluded

However, the court held that the parties each owned 50 per cent of the equity, and ordered the property to be sold with the proceeds divided equally. It was also ruled that Dr Rowland had lost the opportunity to enjoy the use of the holiday home and was awarded £120,000 in compensation.

This case should be taken as a reminder to Watford residents of the importance to enter into a declaration of trust when purchasing a property as an unmarried couple, particularly if you are contributing unequal shares. A declaration of trust records the share of the property each party owns and states what should happen in each circumstance.