4 ms·

Was this meant as a reply to this thread? I'm not quite seeing the connection.

• tialaramex 4y ago
  Even if your "bare promise" could work, which I'm dubious about, the larger problem is that the lender's lawyers probably aren't sure it would work, which means that they won't lend on homes bought this way, which makes the "bare promise" idea useless in practice. Maybe what wasn't clear is why homes come into it? The most common Peppercorn considerations are in Long Leases. A Long Lease might go like this, I own a plot of land somewhere, "Freehold" is the English term for this ownership. I obtain permission and I build a residential tower, with say forty dwellings inside it. That's one building, on one plot of land, but I need to sell it to forty separate buyers. Today there's a legal mechanism to do this, called Commonhold, but it's rarely used, however historically Commonhold didn't exist, so, if I own the plot of land, and the building, I would write leases for the dwellings inside the building with a long duration. Periods like 99 years, 125 years or even 999 years are often used. Then I sell those leases. As consideration the owner pays me one peppercorn per year, for the period, and I agree to let them live in my tower in exchange. This is called Leasehold ownership, for example somebody might pay £200 000 for a Long Lease on a modest two bedroom apartment in a nice area. These leases don't really (normally) "run out" because the law requires that they can be extended for a reasonable fee, so in practice they're usually permanent.
  • gnicholas 4y ago
    I mean, if it’s for real estate, you have to have a written document because of the statute of frauds. If you need a writing then there’s no reason not to put in some nominal consideration. I think of section 90 as the last resort, for situations that were likely not papered correctly, or at all.