Question Three months ago, Rana and Paul bought a large Edwardian detached property in Prestown with a view to it being their future family home. The seller was Sally Smith, who was recorded at the Land Registry as the sole registered proprietor of the property. Rana, a successful business woman in the fashion industry, contributed half the purchase price, thinking that Paul would be contributing the other half from his own resources. Due to pressure of work, Rana left legal matters to Paul. She did agree that the legal title to the property should be in the sole name of Paul, as Rana was involved in divorce proceedings and did not want it known that she was buying a house with Paul. Rana borrowed a key from Sally and her removal-firm moved her belongings into the property the day before legal completion of the purchase. The property was subsequently registered in the name of Paul at the Land Registry. Rana has now consulted you for legal advice about the following issues. First, Paul has now revealed to her that he funded his half of the purchase price with a loan from the Crabby National Bank PLC to which he gave a legal mortgage on the property at the time of the purchase. Paul has also admitted that last month, because he needed funds for his legal business, he agreed a further mortgage on the property to secure a loan from Prestown Bank PLC, while Rana was away in Milan at a fashion event. Rana is now concerned what her position will be if Paul is ever unable to meet the mortgage loan payments to the two Banks. Second, when Rana moved into the property on the day of completion, she was disappointed to find that since her initial viewing of the property, two items have been removed from the property. One item was an ornate chandelier that hung above the spacious hallway to the property. The other was a small stained-glass window above the front entrance to the property. Both these items were still present when she visited the property to measure for carpets, the day after she and Paul exchanged contracts with Sally Smith. By the date of legal completion, the stained-glass window had been replaced by a plain piece of glass and there were simply bare electrical wires in the spot where the chandelier had been bolted to the ceiling in the hallway. Third, a contractor hired by Rana and Paul to install a swimming pool in the large back garden of the property, has informed them that his workers dug up what appeared to be a metal bowl and jug. The contractor took these to the local authority archaeologist who said they appeared to be bronze Roman objects and probably very valuable. Rana has contacted the local authority who has confirmed that they have the objects and that the contractor may be due to a reward, but that Rana and Paul have no claim to the items. Rana wishes to know whether she has an interest in the property and, if so, whether it is binding on the mortgagees; whether she has a claim in respect of the items removed by the seller and whether she has a claim to the items now held by the local authority. Advise Rana.
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