Couple in row with 'devious' nephew over claims he stole their £4million home

21 September 2023 , 12:52

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The house was bought in the name of the "very close" nephew, Cheng-Jen Ku

A wealthy couple are locked in a court row with their "devious little sod" of a nephew over claims he "stole" their £4m house in a swanky millionaires' row which has celebrity neighbours.

Michael Lee and wife King-Su Huang became neighbours to Chariots of Fire producer Sir David Puttnam after snapping up a three-bed home in Queen's Gate Place Mews, Kensington, in 2004. The exclusive cobbled mews, close to the Royal Albert Hall, was once the epicentre of the world's classic car trade and the site from which motor racing legend Alain De Cadenet ran his Le Mans team.

But because the house was bought in the name of their "very close" nephew, Cheng-Jen Ku, 40, who also has a room there, the family is now fighting a bitter court battle over who is the true owner. Mrs King, 73, is suing her nephew - backed by her husband Mr Lee, 79, as a key witness - for a ruling that, despite being in his name, she was always the rightful owner. Mr Cheng however claims the house is his because it was "gifted" to him by his auntie - a claim blasted as "piffle" by Mr Lee as the case kicked off at Central London County Court.

Self-made electronics millionaire Mr Lee told Judge Alan Johns KC that his nephew had gone from being “a cute little kid" nicknamed "Trouble", to become "mean and nasty” in adulthood. "He is trying to steal our house because he has turned out to be a devious little sod and that’s why we’re in court,” he said from the witness box. Businessman Mr Lee, who made his fortune through an Essex-based electronics company, met his wife while working in Taiwan and later channelled his cash into a property portfolio, told the court it had always been his "dream" to own a mews house.

King-Su Huang outside Central London County Court

Michael Lee is suing his nephew

When he and his wife found the property in Queen's Gate Place Mews, just a short walk from the Royal Albert Hall and Natural History Museum, they decided to snap it up. The Victorian mews was built between 1866 and 1869 to provide stables for the grand houses on nearby Queen's Gate and is accessed through a Grade-II Listed archway.

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Mr Lee told the judge that his wife handed their nephew £1.57m to buy the house in his name, explaining that, because they already owned a string of properties: “I didn’t want all these properties to be in our names." It is now worth more than twice the price that was paid, with lawyers valuing it at up to £4m. Mr Cheng became its registered owner, coming and going as he pleased and with his own set of keys, with both him and his aunt and uncle having a room there.

Mrs King's barrister Rupert Cohen told the judge that the couple insisted that there had been a clear understanding that, despite being in their nephew's name, she was the true owner, with her nephew holding it on trust for her. “Mrs Huang claims that she and her nephew agreed, prior to the purchase of the property, that the property be registered in his name, but that the beneficial interest would be hers, and she provided the entire purchase price of the property," he said.

However, Mr Cheng's barrister, Scott Redpath, claimed the clear intention was to “give this property to him”. Mr Cheng maintains that the house was a gift from his beloved aunt in line with Taiwanese custom, although conceding she may still have rights to a “minority” stake in the property. Part of the logic in gifting him the mews house was to “preserve the family wealth”, Mr Cheng claims, following a “cultural expectation that, if gifted a property, he will maintain it for the wider family importance”.

But an indignant Mr Lee fired back from the witness box: “Never - if that was the intention I wouldn’t be fighting this case now. He hasn’t put a dime into maintaining that property,” said Mr Lee, branding his nephew “too lazy” to even mow the lawn when he once stayed at their country home as a young man.

The £4m home (Champion News)

Mrs Huang’s lawyers point out that she and her husband paid all the bills owing for the house and claim her nephew only ever used the property “with her consent”. Setting out his defence, his barrister Mr Redpath said: "Mr Cheng contends that his aunt purchased the property as a gift for him in or about September 2004.

"The property was accordingly transferred to Mr Cheng and the legal and beneficial interest in the property vested in him absolutely. The claimant and Mr Cheng were very close at the time when the property was purchased. She paid the entire purchase price of £1,570,000.

"Mr Cheng denies that at the time the property was purchased there was any agreement that his aunt would hold the entire beneficial interest in the property, with Mr Cheng as her nominee." Although he claims the property was gifted to him, Mr Cheng accepts that the court could find that his aunt has a small stake in it, given their shared use of it over the years. The case continues and the judge is expected to reserve his ruling until a later date.

Kelly-Ann Mills