TICs buying:selling a shared flat- what to think about

[Richenda]

DD is looking into buying a flat as tenants in common with a friend. The idea is that they will share until they’re in a position to afford their own places and then they’ll sell the flat to get two deposits from the equity.

Any pitfalls they should be aware of? Do you think they should both have to agree to sell or should one be able to compel the other to sell? Trying to think about everything that could go wrong so that they can work out in advance what’s fair. (They’re best mates so hopefully nothing will go wrong!)

I’ve known friends do it successfully and others do it less successfully. In terms of things “going wrong” it’s less about them being best friends and that therefore insulating them from a fallout and more the practicalities: what happens if one of them wants or needs to sell at a really bad time for the other? What happens if one of them wants to move out and let their room to a lodger? What happens if one of them begins a serious relationship and wants to move the partner in? What happens if one of them loses their job and can’t contribute to the mortgage? When buying as a couple in a relationship these are less likely to arise than with friends.

One tenant can always compel the other to sell, but they would need to do it with a court order if the other wasn’t in agreement. No solicitor would advise either party to attempt any different contractual arrangement between themselves.

And regarding all the practicalities, if they go ahead they would need to have these in a very clear agreement ahead, no “oh, we’re best friends, we’d sort it out amicably if the time came.” Even then, enforcing them could be costly and involve legal action.