I'm a new poster who has been doing a bit of lurking for a while. Please forgive me if I don’t follow the accepted etiquette but I’m properly out of my depth here, trying to help a friend who lives abroad.
She and her brother each have a 50% share in a house in the UK. There is no mortgage, they own the house outright. The house is in London and its value has risen considerably since its purchase despite no renovation work being done although the house desperately needs it. Both of them entered into the arrangement happily but initial plans for the house have been thwarted by planning regulations (don’t ask!) so that now the two of them are at loggerheads regarding the future of the property. There are no ‘get out’ clauses drawn up.
He wishes to embark upon a very expensive project that will involve an almost total rebuild. She wishes a simple revamp. Both want to then rent the place out to gain income, obviously at different values. He wishes to live in 'his' 50% of the house once completed, thus allowing her to gain rent from 'her' half whilst she is abroad? Kitchen and bathroom are shared at present.
A stalemate has been reached. I have given the advice to engage a UK solicitor to advise her of her rights and responsibilities. They are ‘tenants in common’.
He is now living in the property but will only allow her to rent out her part of the property to tenants whom he approves of.
He wishes her to make a decision regarding the sale of the property. He wishes to buy her interest at a value considerably lower than local estate agents have valued the property at.
An agreement has now been made that the property is to be sold. She is a bit unhappy about this because she does not want to sell but recognises that she may have to do so. Whatever happens, she is determined that if a sale is to occur it is to be on the open market.
He is also demanding a legally binding clause of some sort that says that if the house is not sold within three months of going onto the open market then each party has the right to buy out the other. The value of the house is to be based upon the highest offer made to the estate agent, minus however much commission they would have charged. He suggests that they then bid against each other to buy the house, starting at the price arrived at as mentioned above. She cannot afford to buy him out.
I've tried to offer what little advice I can but really don't know how to best advise.
Is he/ she being reasonable?
Your thoughts?
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Property woes- brother and sister at loggerheads
13 replies
ShannonG · 11/05/2016 20:24
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