The House of Lords has held that a bankrupt property owner who transferred a house to his wife in recognition of her “love and affection” did not set a sufficiently high price.
Lord Steyn, Lord Hoffmann and Lord Walker have refused to allow Barbara Oakes permission to challenge earlier rulings rejecting her husband’s claims that her “love and affection” was all the payment he wanted for the property.
Arthur Oakes transferred the house at 1 St Wilfrid’s Road, Bessacarr, Doncaster, to his wife in March 1988. Following his subsequent bankruptcy, from which he has since been discharged, the trustee in bankruptcy challenged the transfer.
In 1997, in the High Court, Rattee J held that a property transfer for such a consideration constituted “a transaction at an undervalue”. In those circumstances, he said, the house could never have legally belonged to Mrs Oakes.
The decision was backed by the Court of Appeal in January 2002, and has now been upheld by the House of Lords.
Simms v Oakes House of Lords (Lord Steyn, Lord Hoffman and Lord Walker) 15 July 2003.
References: PLS News 15/7/03
