Transactions at an Undervalue – Beneficial Interests and Declarations of Trust: Lyle v Bedborough  EWHC 220 (Ch)
A Property was purchased in the joint names of Mr and Mrs Bedborough in 1994. In 2008 the Respondents’ evidence is that they entered into an oral agreement by which Mr Bedborough would transfer his interest to Mrs Bedborough (the “2008 Agreement”). In December 2012, the Respondents entered into a declaration of trust by which they declared that they held their interests in the Property as tenants in common for Mr Bedborough as to a 5% share and Mrs Bedborough as to a 95% share (the “2012 Declaration”).
Mr Bedborough relied upon the 2008 Agreement, being beyond the 5-year relevant period under S.339 on the Insolvency Act 1986, whilst the Applicant Trustees denied the 2008 Agreement had any effect with the only transfer being made pursuant to the 2012 Declaration, within the relevant period and at an undervalue.
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