This case concerns an appeal and cross‑appeal arising from a decision regarding the property at 9 Southcote Road, jointly owned by the bankrupt and his former wife, Ms Lin. The trustees in bankruptcy sought possession and sale of the property, while Ms Lin contended that she already owned the full beneficial interest, relying on a 2018 WhatsApp and email exchange in which she claimed the bankrupt had transferred his share to her before his bankruptcy in 2019.
The Appeal Court dismissed Ms Lin’s cross‑appeal, finding that no transfer of the beneficial interest had occurred prior to bankruptcy. The Appeal Court concluded that the 2018 communications did not amount to an immediate and unequivocal transfer of the beneficial interest. The language suggested negotiation toward a future settlement within divorce proceedings, not an instant disposition. In addition, the court held that the WhatsApp header identifying the sender did not constitute a legally valid “signature” in writing for the purposes of s.53(1) Law of Property Act 1925.
The lower court had found “exceptional circumstances” to justify delaying the sale under s.335A Insolvency Act 1986 for over eight years, until 2032. The Appeal Court accepted exceptional circumstances existed, particularly the impact of delayed family court proceedings (which, had judgment been handed down earlier, would have transferred the property to Ms Lin before the bankruptcy) and the mental‑health conditions affecting Ms Lin and the children. However, the Appeal Court held the eight‑year postponement was an error of discretion, as insufficient consideration had been given to creditor interests, bankruptcy costs, and realistic alternative housing options available to Ms Lin.
The court therefore reduced the deferment period, ordering vacant possession and sale by 31 July 2027 instead of 2032.
Reid-Roberts and another v Lin and another [2026] EWHC 49 (Ch)
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