What is proprietary estoppel?
Proprietary estoppel is a legal claim that can be brought when a landowner has made a promise to transfer its land to someone else and later retracts that promise.
Example of proprietary estoppel
This can occur when, for example, a parent has made a promise to their child that they will inherit some land / property when they die, but their will states something different.
Most commonly, these claims are brought where farmland has been promised in return for low paid work until the death of the landowner, but this promise is not honoured in the landowner’s will. However, another example may be where someone has remained living in a property to act as a carer, relying on the promise that they would inherit the property if they did so.
What are the three rules of proprietary estoppel?
The three main elements of a proprietary estoppel claim:
- An assurance
- Reliance on the assurance
- Detriment
Proprietary estoppel is based on principles of fairness and justness. This means that the claimant must also show that it would be unfair for the defendant to go back on the assurance.
Proprietary estoppel cases in the UK
A recent High Court case, Spencer v Spencer [2023] EWHC 2050, saw the court considering a proprietary estoppel claim in relation to farmland. In this case, a father had made a promise to his son that, on his death, the son would inherit the family farm on the condition that the son worked on the farm with his father. The son, relying on this promise from his father, worked on the family farm for 40 years with his father. However, not long before his death, the father changed his will leaving the family farm to a discretionary trust with other beneficiaries.
The court held that the remedy would be to transfer the farmland to the son, with the exception of part of the farm known as ‘New Quarry.’ This New Quarry had been granted planning permission for mineral extraction after the father’s death and was excluded as it did not fall within what the son would have expected to inherit when his father made him the promise some 40 years earlier. However, it was noted that the son would be entitled to the agricultural value of the New Quarry so he could replace it with new fields if he wished to do so.
Proprietary estoppel and beneficial interest in relation to breakdown of relationships
Proprietary estoppel does not always relate to farmland. When relationships breakdown, disputes can often arise between former cohabitees about their interests in a property. Being either: property they occupy or have occupied as their home, or an investment property acquired jointly or solely by one of them.
The Talbots team have extensive experience of dealing with proprietary estoppel claims. If someone has made a promise to you in relation to property and you have relied on that promise, get in touch with our expert team for a no obligation fixed fee initial consultation.
Call 0800 118 1500 or email info@talbotslaw.co.uk to discuss your situation with our specialist team of Contentious Probate solicitors.