Inwards v Baker [1965]

Son built bungalow on father’s land at father’s
suggestion.
Son built it mainly through his own labour and
expense.
Lived there continuously until 12 years after father’s
death, at which point proceedings began.
Father had left land in will (made before bungalow
built) to trustees on trust for sale in favour of others.
Trustees sought possession.
Court of Appeal held that an equity arose out of
expenditure of money.
Lord Denning MR – ‘All that is necessary is that the
licensee should, at the request or with the encouragement of the landlord, have
spent the money in the expectation of being allowed to stay there’.
Court will not then allow expectation to be defeated
where inequitable to do so.
Son ‘can remain there as long as he desires to use it as
his home’.