Advice needed please - restriction on land reg

Joshua_J

Hello,

I was wondering if I could get some free advice from someone that knows or may have been in this position before...

My partner and I split up. We bought a house for 250k, she put down the 25k deposit and 5k in stamp duty and fees etc.

We have a restriction on the land registry that says she is entitled to the first 30k then any gain after this would be split 50/50.

We put in 10k each on the property and my step dad and I built an extension on the property. Its now just been valued at 300k.

My ex partner is the legal owner and I am classed as a beneficial owner.

We are entitled to 25k each from the gain.

we made the mortgage payments 50/50 and overpayments 50/50 and anything we done to the house 50/50.

We are about 1 week away from her buying me out but today she has changed her offer to 18k because she is saying without her deposit we would never have got the house (which I understand).

Some may think this harsh but I'm not prepared to accept less than the 25k I am owed. I would not have went into it in the first place or spent so much heartache and stress on building the extension. I feel she is also gaining by me doing the extension but she doesnt see my point.

So my main questions are

1. can I do anything to force the sale of the house?
2. If I cant and she doesnt sell, she is paying the mortgage every month and the house is going up in value... if in 5 years she decides to sell could I potentially gain even more?

Thank you

Land_Registry

I can probably only comment on Q1 in so far as if she is the sole legal owner (registered proprietor on the title register) then forcing a sale through would probably be a legal matter and one which a court is likely to have to order.

The picture painted re the beneficial ownership and the shares involved will not be reflected on the registered title in the detail mentioned. I assume that such detail is contained within some formal deed between the two of you and that some form of restriction is registered to indicate it's existence perhaps - can you clarify that position perhaps?

Joshua_J

Thank you for your reply, Im looking at the document now and it is called a "declaration of trust" she is listed as the "legal owner" we are both listed as "beneficial owners".

There is then a section called "distribution of beneficial interest"
It states "the beneficial owners declare that their respective interest in the NET proceeds of the state of the property shall be as follows... To (partner) the first 30k thereafter the NET proceeds of sale are to be divided equally between the owners.

I hope that helps?

Thank you

Land_Registry

Joshua J - thanks for that

Such declaration of trusts, as you already appreciate, affect the beneficial ownership/interests involved.

The registered title, which we deal with, covers the legal ownership and sometimes such 'trusts' or beneficial interests are reflected by entry of a restriction on the title although reference to the specific details or the Declaration of Trust is very rare.

They key points to consider I suspect will be the terms of the Declaration and how and when you might be able to enforce a sale - as we are not directly involved in the beneficial title as mentioned and we cannot give legal advice we had best hang on for others to post.

The wider implications and legal aspects of the Declaration of Trust would normally be explained when it was drawn up and put in place. If not or no record of what could or could not happen in the future now exists I would strongly advise getting legal advice to understand your legal position and the likelihood of your being able to force a sale on the back of either it or any other circumstance

PasturesNew

Tell her that's fine, you'll pop round at the weekend and take the extension back. She can keep the materials, which you'll stack neatly in the garden.

Joshua_J

Im definitely going to need to get a solicitor. When we initially put the restriction on it was just to safeguard her 30k which obviously i understand. We didnt really look into or think about what might happen in these circumstances.

I feel like taking down the extension lol... Thats the point im trying to make, we spent very little on the extension compared to what it should have cost, she put in 10k and is making 15k, most of that through the extension but she doesnt see my point, she only sees that we wouldnt have even been able to get the house without her deposit....