Forcing a Property Sale ?

rfsteel · 8 August 2005 at 2:49PM

Recently caught the girlfriend playing around behind my back, which has led to us splitting, we had been together 5 years, 2 of which we jointly owned a property together.

We are in the process of agreeing the next step, as the ex would like to purchase the house from me, though the figures that she are using, in my opinion are unreasonable;

Property purchased Oct 2003 for £171,000, redemtion figure on the mortgage is £149,000 and we have had 3 indepentant valutions of £184,495, £184,995 & £189,995.

I agreed that the highest price is a little optomistic, though feel £185,000 to be a fair price, seeing as similar properties in the area are selling for £186,000 - £187,000.

Though my ex is only offering me a price of £182,000, saying this would be the £185,000 price minus any agency fee, that would have been incurred if we were to sell it.

How do I go around getting this figure increased, as I'm unwilling to cut and run, when they could possibly be over £8K + profit that my ex could make if she decides to sell the property on, once she purchased my share of the equity.

Questions are;

can only the use of a solicitor be used to get the higher price if the ex doesn't agree to go over £182k ?

what is involved in forcing the property on the market, as I feel that the £182,000 price is at the top of her buget, hence why she doesn't want to increase her offer ?

Bossyboots · 8 August 2005 at 4:21PM

If you think £185 k is a fair price, then on saving estate agents fees you appear to be getting the right offer from your ex.

If you want to go down the solicitor route, be prepared to spend at least another couple of grand each fighting it out. That would be with absolutely no guarantee at all that you would get a better price. You might even find her solicitor comes up with a calculation that leaves you getting less.

If you force a market sale, then you instantly loose your estate agent fees. Added to which by the time you have phaffed around getting onto the market it might not be worth what it is now. If you go through Court proceedings to force a sale then you are clocking up more costs. There are all sorts of reasons why potential buyers negotiate prices downwards.

Reading your post over again, you seem more determined to thwart your ex than dealing with this in a sensible fashion. With the figures you have posted, you are getting a good offer. What does it matter if she makes a profit later on? Take what is on the table and move on with your life.

Doozergirl · 8 August 2005 at 6:08PM

Sounds reasonable to me. Selling on the open market is a trouble I would avoid every time if I could. You have no guarantees you will fetch the price you expect and there are SO many things to go wrong.

That 'possible' 8k she could make wouldn't be worth much, even anything, once agents fees, solicitors fees & searches, plus the purchase fees, stamp duty and moving costs on her next house are taken into account.

Take the money and run!

John_M_Business · 8 August 2005 at 6:08PM

I think it is fair as long as your ex splits the £3k 'Agency Fee' in the right way (i.e. although it is valued at £182k, when it comes to what she offers you, she halves the loss).

To get to a fair fee, I think the biggest question is who put the money into the house (i.e. the deposit). If you put all in, then you may have a claim that ALL the profit is yours, likewise if she put the whole deposit in, she could claim similarly.

If you split the deposit, then you should split the return. Meaning that she'd take over ownership of the house and the entire mortgage, and give you (182-149)/2 = £16,500 in return

On the plus side, although she's called you for the EA fees, there would be other expenses that she hasn't taken into account - solicitor fees, moving fees etc.

If you want to play hard-ball, then suggest that the house is sold unless she's willing to compromise, but for the sake of a grand here or there, do you really want to be messing around with the house for months?

Neel_2 · 9 August 2005 at 9:43AM

ok what u could do a little math and see what works out best for you

find out how much the estate agents are charging to sell your house (and remeber the figure given will be + Vat)

then find out what the cost of solicitor fees (mostliekly around the £500 mark)

then find out the mortgage company fees for paying back the mortgage

get the total which could be around the £2900. (as this is when i sold my house a weeks ago.

so as u would pay half of it which is £1450

so it should be 185000-1450=183550

and this should be the price of the house.

now if you where to sell it, as it is a buyers market, if you market it at 185000 it is unlikely u will get that as they always knock the price down (unless is immaculate) and u have no idea how long it is gonna take to sell the house and if she does not want to sell u have to get solcitors involved (which means more money u have to pay out )

so if you can get her to pay 183 your doing good

dunno if i make sense to u

Pal · 9 August 2005 at 11:44AM

I suggest agreeing to £182k for the reasons specified above. If for any reason the money is not forthcoming, see a solicitor immediately.

Going to court to sort out the financials for an unmarried couple who have split up is far more complicated than for a divorce, as the law does not give any rights to anyone. It all comes down to who paid for what, who decorated what, who paid for the paint and so on. Really petty and no fun at all.

In these circumstances it is well worth taking the money and moving on asap. Life is too short.

Rikki · 9 August 2005 at 11:49AM

A point to maybe consider.

Will the mortgage company allow her to take over the full amount outstanding on the mortgage?

tinalives · 9 August 2005 at 11:57AM

I can totally understand you not wanting the ex to profit from what has happened, but I think it would be best for both your sanity and your pocket to just sell it to her for the 182k as long as the bank will let her take over the mortgage.

JanCee · 9 August 2005 at 12:53PM

Just take a look around this site at some of the posts regarding asking prices. Everyone seems to be agreed on the fact that it is a buyers market and FTBers are being advised to offer 10% less than the asking price of properties because they are in the best position to proceed. Take 5 - 10% off the average valuation you have been given and your ex's offer looks pretty good to me - just my opinion, for what it's worth.

rfsteel · 9 August 2005 at 2:12PM

Thanks for you advice guys.

I'm not trying to extended this process, it just that in the last year 'we' had spent over £6,000 on a new kitchen and bathroom, plus a identical property in the area, though in less desired street has just sold for £187,000 almost 2K over the asking price.

I understand that £182,000 is a fair price, I'm just want to make sure I can maximise it, as it 'she' will be getting most of the benefit for this investiment in the property.

Re: mortagage, luckly we has just come out of our redemption penatly period, so 'she' will be taking an interest only mortage with her father a guarantor to purchase me out.

Re: moving on with my life, I sure am, just waiting for my US Work Visa to be approved by the US embassy, then I'm outta here from next month

tinalives · 9 August 2005 at 2:45PM

Best of luck with everything.

x

Forcing a Property Sale ?

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