is this do-able? sell house without solicitor to a friend

nicaly1

ok I have a long term empty derelict property that I cannot afford to renovate.
I will not be able to get the money together to renovate for a couple years
here’s the main facts:
– the outstanding mortgage was paid off in Sept 2014.
– I have received all deed/paperwork from bank after settling mortgage
– there are no charging orders on the property
– there are no local land charges on property – I have written confirmation of this dated last week from local land charges officer
– I own freehold all the land. bought and paid for a few years back and I have all associated paperwork/deeds
– I do not owe any money anywhere else – no loans/credit cards, no debt & no CCJ’s
– it is structurally sound – I have a report from a structural engineer dated last year
I have only just started this week to research selling myself privately so was just looking for advice, is it do-able for me to sell house myself to a friend for a nominal fee (whatever the lowest legal amount is) without either of us having solicitors/conveyancer.
My friend is fully aware of condition of property and does not wish to have any searches (unless they legally need to be done) as he has seen ALL paperwork.
I’ve just had enough of the property and my financial circumstances have changed so I cannot afford to renovate and am now paying 50% extra council tax for long term empty property which I can’t afford any longer.
this is what I would like to do (all my decision it is a plan I proposed to this friend)
– I sell property to him for nominal fee
– he will do property up over whatever time period he chooses (realistically will done over next 6 – 12 months)
– when house is then put on market / auction and sale completed, he will pay me first £40,000 and then the remainder balance will be split between us 50/50
I fully understand what I would be doing (and can hear cries now of its his money once I sell it, he will do a runner with money/ even friends can let you down etc/etc) and therefore I would like to add in a Deed of trust /legal document that’s states the last bit about money split (which I have looked into briefly). Although I would just like to say I trust him 110% he is one of life’s good guys and has done a lot for me in the past without asking for anything ever
my question – is it do-able for me ? (I know I can legally sell it myself without a solicitor or him ) but how easy/hard would it be given the above facts
also any resources/websites anyone could point me in the direction of to get me going on this would be very much appreciated so I can do some more research
I have spoken to over 20 different solicitors/conveyancers about selling through normal procedures for a nominal fee, but I have just been thinking its going to cost e another £700/£800 to do this I do traditional way
thank you in advance

Pixie5740

Rather than sell him the whole property for a nominal fee have you considered owning it as tenants in common with a 50:50 split or whatever split you think reflects ownership? You could probably do that without solicitors fairly easily but I'm not sure if you could get a proper, legally binding trust drawn up without a solicitor.

Mallotum_X

use a solicitor . For the sums involved a few hundred will be money well spent.

penguine

Use a solicitor to protect both your interests and his - and to ensure that everything is clear and above board and that there are no misunderstandings later that could threaten your friendship.

searchlight123

if he trusts you as much as you trust him why do you need to sell it to him now. can't he just assume the ongoing costs by re-imbursing you from now, fund the renovations then when completed you sell the property and pay him out the agreed percentage. will save you on legal fees. as long as you both trust each other to this extent.
i'm sure it's doable in the right circumstances.

terryw

Yes, it is possible to DIY the actual transfer to have the ownership changed at the Land Registry .

But any Deed of Trust will have to be prepared by a solicitor and it would make sense for them to do the whole job.

The whole thing is beset by potential problems like capital gains liability for you and subsequently for your friend , possibility of falling out of friendship and the death of either of you.

Why not just sell on the open market at arms length? There are many investors out there after property to renovate.

AdrianC

How good a friend is he? Can that friendship stand up to things that might easily have been resolved if a solicitor had been through the paperwork?

Out,_Vile_Jelly

This is a business transaction, and it's generally best not to involve friends or family in these. This is based on personal experience of lending money to a friend (with a gambling problem, thought I was being helpful), and of many threads on here detailing soured personal relationships that involve property.

ETA: this is an asset you say is worth nearly a million quid. Surely you can spare a few hundred to get a solicitor to sort this out, whoever you sell it to?

nicaly1

thank you all for your replies, I appreciate you taking time to reply very much

ok my original question was the short version/simple version (I know lol) as essentially that is what I am trying to do

just to clarify - the house is currently valued at £40,000 because of its condition - if in same condition as neighbours value would be approx £110,000 so not huge amounts (it is def not worth a million quid to the above poster lol) there isn't a house in the area that's worth a million.

the house is currently just walls and a roof and all boarded up, there is a bathroom suite in but no kitchen cupboards/appliances its just empty as I completely gutted everything when I did have money and then was made redundant so no money meant work stopped on house

and no I cannot even afford a few hundred at the moment

what I didn't say was that the other reason I need to sell house is not only because I cant afford council tax anymore but because of the relationship I now have with the council.

over the last 10 years I have had an enormous number of meetings with some of the top people in the council over my property and I am just cant take any more stress with this property, its making me ill, it is a constant fight with council over the slightest little thing

I understand that they don't want empty derelict properties & they have to be seen to be doing something if someone complains.

I cannot afford to renovate in the timescales they are asking, I have done over the years some of the outside stuff where money allowed

BUT

if I keep property in my name , I am at risk of being served with Improvement Notices AGAIN (and believe me last time 2 years ago there were many) and I just cannot go to court again over this property, they don't seem to get the fact that when I spend money doing the stupid little stuff like making sure lawn is grassed and not just dirt / painting the walls so they look ok / going to court paying fines means I am using the money that I could use to do it up properly

whereas if I sell/transfer title, my friend can afford to do it up and he wont have council on his back as they will give him some time with him being essentially a new owner

I just need to do this as I cant keep fighting them any longer it is just too stressful, also I will be having surgery later this year so that delay things longer too because I wont be earning money while off work

sorry for long essay and too anyone who has read this far thankyou, I know you all have busy lives and possibly your own problems too

Out,_Vile_Jelly

nicaly1 wrote: »

t
just to clarify - the house is currently valued at £40,000 because of its condition - if in same condition as neighbours value would be approx £110,000 so not huge amounts (it is def not worth a million quid to the above poster lol)

Sorry- I think I was confusing your post with another I read this morning. I too am not a millionaire!

Have you investigated the cost of putting it up for auction? What about advertising it to local property developers- they might cover the legal costs and be familiar with this situation?

Land_Registry

terryw wrote: »

Yes, it is possible to DIY the actual transfer to have the ownership changed at the Land Registry.

Our online guidance on transferring ownership may be of interest.

Like others we would also recommend seeking legal advice - the completion of the forms and submission of the application are relatively straightforward but it is the wider matters which need to be considered with regards how both interests are then protected.

Adding clauses around 'future value' after development for example are often referred to as 'overage' so some research on that might be helpful