Valuation of property

[theironinglady123]

Hoping someone can reassure me.

Long story, ex is living in our jointly owned property, refusing to agree to sell as we have Shared Residency and he claimed he would be homeless if forced to sell. I've taken him to Court to try and obtain an Order of Sale.

Long drawn out process, first hearing was over 6 months ago. The Judge asked us to agree the basics and she made it into an order along with directions that he would attempt to get a mortgage in his name alone to buy me out and we would both file and serve evidence and statements. The Order states:

"The property was purchased as Joint Tenants" and
"The current market value of the property is £300k"

Since then we have been waiting for the final hearing which is next month, over 7 months since the last. I have had the local estates agents revalue the property and they all agree it has increased in value considerably. It is now worth around £350k and the agents said it may go for more as it is a desirable property for the area.

Ex's sister has now decided she will buy the property and allow him to live in it. Great, or so I thought. Ex has sent me paperwork via a solicitor to agree to a sale at £295k - which is £55k less than current market value. He says he has had legal advice and has been advised because we agreed it's value was "£300k" a Judge is likely to agree that he should sell to his sister at that value less Estate Agent's fees.

I just need to know - he is being unreasonable isn't he? His sister and him get a great deal and I would be getting totally shafted - why would I want to sell my property at £55k under market value.

Also, does anyone now how strong his argument of "you can't sell as me and the children will be homeless" will be at Court next month given that he has instructed solicitors to sell to his sister, albeit at a ridiculous price?

[whattodoforthebest2]

Yes he's pulling a fast one. I can't imagine for a moment that a judge would order you to sell at under market value, just as he wouldn't accept less than market value if it was anyone other than his sister buying it.

I'd get two or three written valuations, take an average figure from them and say that's what you'll sell at if the sale completes by x date ie end of August, for example, otherwise you'll get new valuations done as the value will probably have increased by then.

In terms of estate agent's fees, that cost should be split between you too, you shouldn't have to bear that cost on your own. Incidentally, you won't need an estate agent if his sister is buying, so that would save on fees.

Re his future housing, if you each end up with half the proceeds, that'll be say £170,000 each after costs. You would then each pay off half the mortgage and use the remainder for a deposit or put it in the bank and find somewhere to rent.

I hope that helps.

[whattodoforthebest2]

Correction - of course the mortgage will be paid off, together with any redemption fees before the remainder is split between you.

[theironinglady123]

Thank you. I'm worried the Judge will say that as it's me wanting to sell (hence applying to Court for an order of sale) that I should accept the low offer from his sister- I just hope they realise that it would mean me getting screwed and ex laughing!

I know he will try and obstruct sale. Refuse to allow viewings, say awful things to potential buyers, leave the place a state etc as if it goes on the market with no interest his sister can buy it cheap. Any ideas of how I can overcome this? I'd like it written into the order to stop him being able to play games- such as he must not be present for viewings, must keep the place in reasonable state etc. would that be seen as reasonable?

[theironinglady123]

Yes mortgage would be cleared first then we'd split the equity 50/50. However since he's lived there alone I've been trying to sell it and he's been not paying the mortgage in full. I'm hoping the mortgage arrears accrued since he lived there alone (he took an undertaking at the last hearing to pay the mortgage in full each month)should come out of his share of the profit rather than mine..

[theironinglady123]

Good idea baby barrister. So I say his sister can give me half the equity based on current market value - what we would have paid in Estate Agents fees.

His latest email to me says because he has found a private buyer he refuses to contribute to Estate Agents fees. But we'd both be thousands of pounds better off even after fees if it went on the open market rather than sell to his sister.

[whattodoforthebest2]

I doubt if you can prevent him being in the house during viewings as he's a joint owner. However, you can be there (if you're prepared to do that) or you can instruct the estate agent to be present for every viewing to explain that it's a forced sale so one party might be being obstructive. Most potential buyers wouldn't be put off by someone behaving like an arse if you and/or the agent can point out that there's a court order so that the sale will proceed regardless of his behaviour.

Do you have a solicitor to advise you?

Also, I would take all your mortgage statements, bank statements, bills etc to prove he's been underpaying contrary to the court order, keep it all neat and tidy so its clear for the judge. The judge is there to find a reasonable solution to the situation - he certainly won't be looking to penalise you financially - after all it's in both your interests to get as high a price as possible - surely your ex appreciates that?

[theironinglady123]

Thank you. I've got two up to date valuations to take to Court. They have only been able to be done as both those Estate Agent companies have previously been into it and valued it so all details are on their computers about the property and they've just increased the valuations in line with the market. I can't get any more valuations from a 3rd or 4th company as he refuses to allow Estate Agents in, he's changed the locks and refuses me access so it's impossible.

[theironinglady123]

What to do. Yes it is in both out interests, except if he sells it cheap to his sister she may well be giving him a lump sum cash whilst depriving me of a large amount of my share of the profit or she might buy it cheap, put it back on the market and they share the profit which should have been me and my ex sharing it. Yep, got the mortgage statements and arrears demands, lots of charges been added on since last Court eating as he keeps missing the payments or underpaying the payments :(

[whattodoforthebest2]

If your name is on the title at the land registry, then he can't sell without your signature to the transfer. That would show the selling price etc so you can refuse to sell at that price. You will need a solicitor to do the legal work on your behalf and they will make sure that the charges are paid off before any proceeds are distributed. New charges should come out of his share of course.

He's not allowed to change the locks to keep you out if it's your property too. I think your best course of action now is to wait until the next court hearing, tell the judge about his behaviour and ask for an order to allow you entry for estate agents, viewings etc. The CAB can also advise you on what action the court can take to help you. A judge will take a very dim view of his behaviour so make sure you've got proof of everything.

[fortheloveof01]

Would you have accepted less had the value decreased? This has the potential to go on forever and will end up costing you more in solicitor's costs than you'll ever gain financially. Let go of the house and the relationship and get on with your life.

[voiceofgodot]

I think the OP is self-representing so it won't cost her anything in solicitor fees.

I think there's definitely a point at which it's wise to let go, but whilst it's easy for some people to think 20-30k isn't enough incentive, for the OP it clearly is.

[JaneParker]

Why not have a bidding race - the sister and other buyers. If no other buyers come up then it goes to the sister at £300k. If the other buyers bid say £330k the sister and match or exceed that and have all that done by a fixed date so neither side is hanging on waiting for possible offers?

[theironinglady123]

Hane

[MrsFlorrick]

It would be easier to sell the house if it was vacant ie without him in there.

Does your sister really want it as an investment or is she just trying to help?

Be aware that he will mess your sister around on rental payments later on and she will end up losing money.

You could try to get him evicted on the basis he isn't paying the mortgage that he swore to a court he would. So he is in breach of that.

Please get some representation or at least advice to avoid this dragging on.

I'm sorry this is happening to you. It's very stressful. My DM married and divorced 4x before I left home so I've seen all sorts of this kind of thing. And for you.

[theironinglady123]

Not sure what happened there :)

Jane- Yes that's what I've suggested. The property goes on the open market and his sister can bid against other interested parties, that way we realise the best possible price for the property. He obviously doesn't want that as his sister wants to get herself a real bargain! The Agents have told me that properties in that area have been going well in excess of asking price.

Forthelove- I could walk away but I walk away on an amount if money that would make a huge difference to my children's lives. I'm struggling at the moment and the money I would get from the sale of the property at market value is twice my annual salary. If I had money and savings and a high wage if walk away but I need that money , it's my only
Investment and a huge sun of money to me which would pay off my debts too. As voiceofgodot said, I can't afford a solicitor so I am self representing so no legal fees. My final hearing is in a week I'd be silly to drop it all now and lose tens of thousands.

[JaneParker]

I would put it on the open market. The words in the judge's order just says what the parties thought it worth then. It does not say it is assumed to be worth that and they have to work on that basis or fix it at that in any way unless it says so elsewhere in the order.

[fortheloveof01]

I see what you're saying about self representing as you can't afford a solicitor but if you're going to get anywhere with this, you'll need one. These situations are extremely stressful. Perhaps a conversation with the sister and a compromise on what you're prepared to accept would avoid unnecessary court action which will undoubtedly affect your children as you will become so stressed about it. I'd personally cut my losses but that's because I've been through something very similar and definitely wouldn't put myself or my family through it again - no matter what the financial gain.

[whattodoforthebest2]

If the final hearing's only a week away, you have nothing to lose now by waiting to see what the judge says about his behaviour and presenting clear evidence to prove it. Courts must see this sort of thing all the time and have measures in place to deal with it. I represented myself in court for my divorce a few years ago and the judge was very helpful and balanced and made sure I knew the implications of what I was agreeing to.

IMO you definitely shouldn't be walking away - getting a fair share matters for you and your DC and your ex needs to be told he can't get away with playing silly buggers.

[Sneezecakesmum]

The experience of my BIL is this. His ex was living in the property (joint names) and wanted to buy him out at a much reduced value of the property. She talked down the property to the estate agents saying there could be asbestos in the paint (there wasn't) the damp was serious (overflowed bath) the party wall had a 'serious structural crack' (not structural and the responsibility of neighbours ...extension build) plus some other gems!

One estate agent backed down when challenged but the solicitor advised to cut out estate agents (as the ex refused him entry to the house with his own EA on the grounds of non existent DV) and go to a surveyor who would give an unbiased view and valuation and cost £300 up, but the bill had to be shared between BIL and ex. Faced with this she allowed EA entry and a fair price to be agreed.

[notapizzaeater]

I'd sit tight a week and present the new price to the court.

[Ohanarama]

I'm pretty sure that for a valuation to stand up in court it needs to be a report from a surveyor as the prev poster has said. Estate agents aren't as qualified as surveyors and value houses at the amount they would put them on the market for, which usually is a higher amount than they actually sell for. I'm surprised your solicitor hasn't requested a surveyors valuation already. Gpuse prices in most parts of the country have risen since the start of the year so should be worth it.

[voiceofgodot]

From what I've been told by my solicitor, valuations for court purposes require a surveyor really, if they are contested. I am about to sell my house at the peak of the market (in a market which looks to be rapidly waning) - whilst several agents could easily tell me one figure re valuation, I am not sure it will bear much relevance to the actual sum when it comes to sale price.

[Sneezecakesmum]

Estate agents valuations are still valid to a court but only if you both agree with the price. Zoopla gives an idea of recent prices in your area. It's entirely dependent on agreement between the parties.