Laskar v Laskar [2008]

Laskar v Laskar [2008] EWCA Civ 347 addressed the application of the Stack v Dowden presumption in situations where co-owned land was acquired as an investment, even by family members. The judgment, with Neuberger LJ delivering the principal judgment, clarified that in the context of investment properties, the Stack v Dowden presumption may not apply or can be readily departed from based on the circumstances.

A mother desired to purchase the property she was occupying as a tenant. Financial constraints led her to seek assistance from one of her daughters, who agreed to contribute to the purchase price. The property was legally held by them as joint tenants, and there were no explicit discussions regarding beneficial ownership. Both parties accepted joint responsibility under the mortgage.

The Court of Appeal, in its judgment, determined that the parties were equitable tenants in common. Despite the familial relationship, the property had been acquired as an investment, and either the Stack v Dowden presumption did not apply or it was effectively rebutted by the facts.

The resulting trust approach was adopted, and the daughter was deemed entitled to one-third of the equity, while the mother was entitled to two-thirds. The court considered the joint liability under the mortgage, treating each party as having contributed half of the mortgage advance. Additionally, the property had been purchased at a discount, to which the mother was entitled as the former tenant of the local authority. This discount was factored into the resulting trust calculation, treated as a contribution by the mother.

The case highlights the flexibility of the courts in departing from the Stack presumption when dealing with co-owned land acquired for investment purposes, even within family relationships. The resulting trust approach allows for a more nuanced assessment of the parties' intentions and contributions, considering factors such as joint mortgage liability and any discounts applied during the property acquisition. Laskar v Laskar serves as a precedent for recognising the distinct considerations in investment property scenarios, departing from the presumptions applied to family homes under the Stack v Dowden principles.
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