In the spring of 2018, Claudia Spenner inherited $400,000 following the death of her mother. Prior to the inheritance, Claudia and her partner, Luca Arbore, had been living in rental accommodation in Ballarat. The inheritance provided them with an opportunity to purchase a property together. Claudia had recently begun work as a graduate lawyer at a local Ballarat firm and was enjoying the bustle of her new working environment. She was working long hours and was not keen to move out of town. Meanwhile, Luca had been working casually as a horse-riding instructor at Three Barns horse riding school, close to Mount Helen. Luca was nostalgic about his own childhood on a rural property and was eager to use the inherited money to purchase a place where they could raise a family and he could eventually begin a trail riding business. Luca eventually persuaded Claudia and on 3 March 2019 they were registered as joint tenants of the fee simple in 14 Bell Avenue, Mount Helen, and moved in. It was a large rural property with a ramshackle house but breathtaking views. They bought the property for $1,200,000. Claudia contributed $400,000 to the purchase price, being the amount of her inheritance. Claudia and Luca then borrowed the remaining $800,000 of the purchase price and assumed joint liability for repayment of the loan. Claudia commuted to Ballarat for work, and often worked long hours and on weekends. Meanwhile, Luca made enquiries about the costs of a home renovation, which was quoted at $150,000 (excluding materials). Given the price, Luca decided to stop working as a horseriding instructor and renovate the home himself. He paid for building materials from his own savings, amounting to $50,000, and spent the next six months working on the house. As the months passed by and Claudia was increasingly absent from home, Luca began a friendship with Annabelle Merry, who he met while visiting the hardware store. Annabelle was a fellow riding enthusiast and was looking for accommodation near to the Three Barns horse-riding school. Luca offered Annabelle use of a converted shed on the southern slope of 14 Bell Avenue. In making this offer, Luca noted he would still use the shed to store and access his riding equipment on a regular basis and would be coming and going. Fearing Claudia's disapproval, he decided not to tell her about the arrangement and assumed she would not notice Annabelle's presence, given her frequent absences. As they spent more time together, the friendship between Luca and Annabelle blossomed and Luca said to Annabelle, 'It's wonderful having you at Bell Avenue; you can occupy the shed on the southern slope as long as you like.' The next week, Annabelle paid for new carpeting and heating for the shed, to make the space more comfortable in the approaching winter. In December 2020, Claudia discovered Annabelle had been occupying the shed on the southern slope. Suspecting infidelity, she threw Luca's belongings out of the house and refused to allow him back into the house. While Annabelle was out, Claudia padlocked the shed. Claudia now denies that either Luca or Annabelle has any interest in 14 Bell Avenue.

Does Annabelle have an interest in the shed that is enforceable against Claudia and/or Luca? (10 marks) Please help answer this question using Victorian Legal principles.