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Imaginary intentions?

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15 July 2010 / Michael Walsh
Issue: 7426 / Categories: Features , Family
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Finding common intention after Kernott v Jones.
Michael Walsh reports

“This is a cautionary tale, which all unmarried couples who are contemplating the purchase of residential property as their home, and all solicitors who advise them, should study…” That was the opening warning given by Wall LJ in the recent case of Kernott v Jones [2010] EWCA Civ 578, [2010] All ER (D) 244 (May) a case that considers the division of the beneficial interest of the home of cohabitants after a long period of separation.

Facts

In 1981 Ms Jones purchased a caravan for £3,750, which was funded by a loan from her bank. In 1983 or 1984, Mr Kernott moved in with Ms Jones and they had a child. In 1985 Ms Jones sold the caravan for £8,000 and the couple bought the freehold of the property in question for £30,000. Ms Jones contributed £6,000 from the sale of the caravan and the rest of the purchase was financed by an endowment mortgage.

During their relationship Mr Kernott would give Ms Jones £100

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