A couple lived in a property with their aunt. The property was officially in the husband’s name but the aunt had contributed a partial sum towards the purchase price, while the rest was paid by mortgage. The couple subsequently went bankrupt and the aunt claimed to be entitled to a proprietary interest of the property by means of a resulting trust presumed from her contribution to the purchase price.
Held: The money was paid by way of a loan with the intention that it be repaid. She was, therefore, not entitled to any share of the equitable interest of the property. Monies advanced by way of loan are not, on this basis alone, to be treated as contributions to the purchase price of property so that the lender acquires a beneficial interest in that property as a result.