In 2015, after dating for several years, Lennie and Ruby decided to set up home together. After looking for several months, they eventually found a property to buy: Holly Cottage. The property was somewhat dilapidated and needed a considerable amount of renovation work, but they were both excited about making the property their home and were hopeful that they might significantly increase its value. They negotiated a price of £250,000 to purchase the property. Lennie's mother contributed £20,000 towards the deposit and Lennie provided £5,000 of his own money. The balance was funded by way of a loan from West Country Building Society, secured by way of a legal mortgage. The mortgage was and still is in Lennie's sole name and the property is registered at HM Land Registry in his sole name. Ruby was a little concerned about not being on the legal title to the property, but understood why Lennie wanted it to be in his sole name, given she did not have any savings or access to parental help, to contribute to the deposit. She was reassured when Lennie said "I will always look after you as long as we live here". Shortly after they purchased the property, Lennie encouraged Ruby to leave her job and follow her passion to study interior design, which she did shortly after they moved into the property, enrolling on a course at a local college. This arrangement worked well because it enabled Ruby to oversee a lot of the work being undertaken at the property by builders and other contractors. She also took on a number of home improvement projects herself. She knocked down a non-supporting wall between the bathroom and toilet and fitted a new bathroom, she replastered the downstairs walls and redecorated throughout the property. As a result of the renovations, the value of the house increased to £400,000 by 4 the end of 2016. In 2017, Ruby had a child, Ela. Due to her experience renovating Holly Cottage, Ruby set up her own interior design business. She used the income she received from her first projects to pay for the property utility bills each month. Her business was successful and by 2019 she was contributing each month to the mortgage repayments and paying for childcare for Ela. Towards the end of 2019 Lennie discovered that Ruby had been having an affair with the builder who worked on the renovation of Holly Cottage. In December 2019, Lennie moved out of Holly Cottage after he became convinced that Ela was not his biological daughter. Ruby did not know where Lennie was and she continued to provide for Ela and pay the mortgage and household utilities and other outgoings on her own. Last week Ruby received a letter from Lennie informing her that he is intending to sell the house, which is now worth £600,000 and that he will give his mother what she is due and that he will then give Ruby £20,000 from the sale, but "not a penny more". Advise Ruby as regards her and Lennie's mother's respective entitlements. Explain how your answer would differ as regards Ruby's entitlement if the house had been registered in the joint names of Lennie and Ruby.

i need to know which type of trust i have to advise Ruby and Lennie's Mother. For Lennie's Mother, a Promissory note will be advisable or not. Please suggest 

Answer rating: 100% (QA)

Based on the provided information it appears that Ruby and Lennies mother may have a beneficial interest in the property through a resulting trust spe... View the full answer