Help - Ex trying to force me out or pay more for her share

notrippedoff

Hi, In a situation I will give the facts so it's not a massive read.

Ex left in Feb 2012, stated she wanted to sell house. I invested 44k and she invested 41k against mortgage. I paid the majority of bills along the way, I earned mine, she inherited....

I stated don't want to sell will buy her out at current market value.

She gets RICS valuation which down values property by 20k. I estimate selling costs to be 8k

I figure she is owed 41k less 10k less 4k a max of 27k.

She states she wants 37k to sell. Letter from solicitor threatening court action to force a sale etc. I offer 20k as a starting block, she is refusing to budge and her rich family have offered me 35k to sell up.

I don't want to move and I have money to buy her out at current market value as proven by RICS. I up my offer to 24k. She still refuses to budge from 37k.

It's her that wants to sell and not me, why should I be forced into selling my stake? I think it's fair that the max I pay is 27k in line with the RICS valuation and selling costs.

If this went to court what do you think would happen? I'm fearful of having to pay her costs if she won but don't want to be intimidated into paying more than market share for her stake or having to move myself.

Please Help!

mrginge

Take the 35k, maybe try bid them up to 40k?

notrippedoff

Don't see why I should as I have never expressed an interest in selling. If I sell at 35k I lose 9k and I paid the majority of bills when there. If they offered me 44k then I would have to consider but in reality I like my home and feel if she wants to sell then surely it should be at current market value ???

paddedjohn

If you do agree a price to buy her share can you get a mortgage in your name alone for the mortgaged amount?

thelem

I'd forget about the bills, unless there was some pre-arranged agreement that you got more equity because of paying them.

Were you married? Are you now divorced? If not, was there any written agreement?

Morally, she has invested £41k and has the right to get as much of that money back as possible. You need to treat it as a business transaction and convince her that £24k is the best offer she's going to get from anywhere - but you've said above you'd expect her to pocket about £27k on the open market, so you're asking her to take a £3k hit so you don't have to to move house. Remember the valuation is only ever rough too - so the figure you've come up with shouldn't be the maximum you're willing to pay, it should be a target you hope to get somewhere close to.

Where has she got the figure of £37k from? Does your £8k of selling costs include solicitor's fees which she will need to pay anyway?

mrginge

If you are doing a TOE there wont be 8k of costs.
I would offer her around 31-33 final offer. Under those circumstances
I would question whether a judge would then award costs against you. What does your solicitor say?

notrippedoff

Paddedjohn - Yes easily, have a decision in principle from my bank ready to go once agreement on the figure is reached and I have made the transfer.

Thelem - No not married. No written agreement, tenants in common. That is exactly what I am trying to do, she has a RICS valuation, I am constantly sending her comp arables in the local area which support the RICS valuation. I'm willing to pay up to 27k but I wasn't going to offer her that straight away, I have increased my offer she is standing firm at 37k. I have no idea where she has got 37k from, I have asked her and her solicitor to justify this for months to no avail.

MrGinge - Yes I appreciate that but if I don't do a TOE then her only option is to sell on the open market where she will pay selling costs. My solicitor advised me around 3%.

mrginge

But you are doing a TOE.
What did your solicitor say about the likelihood of costs being awarded against you went to court having offered 27k
and how much would they expect those costs to be?

mrginge

I would guess that unless you were attempting to block any disposal/sale/transfer then you would each pay your own costs?

This may be utter rubbish.

notrippedoff

Yes I am doing a TOE I appreciate that but if I wasn't in the position to do a TOE we would have to sell on the open market and incur selling costs. So my offer to her is based on the reduced equity and half selling costs being removed from her initial investment. Why should she get more money from me than she would on the open market??

My solicitor hasn't commented as yet as court action is only a threat, if it looks likely then we are going to analyse and make a final offer which makes me look good in court. I just wanted to garner some independent opinions on the matter.

I'm not trying to block anything, I'm just acting in my best interest to keep a roof over my head and buy her share at current market value.

Appreciate the opinions and advice here guys, thanks

andy.m_2

has the breakdown of offer been explained to her.
Regardless of the downturn in the market, havs it been explained that you have made further reduction based on projected costs and the like?

She may be expecting 50% of the equity against the RICS valuation and assume that as you are staying there are no associated costs.
I'd be tempted to up your own offer to 32k full and final, or start negotiating her offer up to £44k as you want.