Selling when one party doesn't want to.

Neily23

Hi all
I bought a 2 bed upper flat 50/50 with a friend 13 years ago. It was meant to get our foot on the ladder and maybe be an investment but was never neant to be a permanent thing. I moved out 10 years ago and got married, had kids and moved in with my wife in her house, while my friend stayed in the flat with me covering my half of the mortgage.
I've wanted to sell the flat for years but my friend doesnt want to and i need to move on with my family. He refuses to buy my share even with me offering to give it away and just sign it over to him.
Im now in the position of my wife losing her job due to illness so im the only earner and cant afford the mortgage on the flat.
Is there any way out of my situation with the flat?

TonyMMM

How much equity is there in the flat ? If you have been paying a mortgage for 10 years on a flat someone else lives in you would be crazy to walk away with nothing.

You could get a court to order a sale, but may be expensive and it would be better to come to an arrangement if possible.

What was agreed at the time you bought the flat - did you get anything drawn up to cover how you would deal with any sale (or wish to sell by either party) ?

Has he been paying you rent for your 50% of the flat that he has occupied for the past 10 years ?

Browntoa

Similar thread , same answers

https://forums.moneysavingexpert.com/discussion/comment/74335810#Comment_74335810

G_M

Well, firstly, stop paying half the mortgage and secondly start charging a market rent rate for the 50% of your property that he is occupying.

But seriously

* this should all have been agreed in advance when you bought the property, via a Deed of Trust

* some serious discussion to reach an agreement is by far the best option (certainly on financing the flat going forward if you don't sell)

* ultimately, court action to force a sale - which will take time and be costly

Thrugelmir

Consult a solicitor. A letter from them on your behalf may focus their attention as to how serious you are. If the matter did go to court. They'd most certainly lose. Which would incur them with considerable cost. Something which also rethink their position.

ThePants999

The only actual ways out are to somehow make him see sense, or to get a court to order a sale (slow and expensive).

To help with the first option, here's the leverage you have:
- You can tell him you're going to stop paying the mortgage. If he takes over fully paying the mortgage, problem solved. If he doesn't, that's both your credit files massively damaged, but he's the one homeless.
- You can move in. It's your property too, so there's nothing he can do to stop you. A few weeks of making his life a misery from inside "his" flat would probably fix things.
- You can threaten to sue him for 10 years' worth of half the market rent. Tricky to actually achieve, but logically speaking, he's had full use of a property that he only owns 50% of and has only paid for 50% of. You could tell a court that you'd been treating it as an interest-free loan until the flat was sold, but he's not selling the flat so now you want him to repay it

Neily23

Theres negative equity. Paid just under 70 got 40 left and the guide price is 30-35.
We agreed a 50/50 for any sale but there was nothing drawn up on how we'd deal with it.
I didnt think he had to pay me anything for rent as its a mortgage we share. I did a google search a couple years back which suggested i wouldnt have a leg to stand on.

Carrot007

Neily23 wrote: »

Theres negative equity. Paid just under 70 got 40 left and the guide price is 30-35.
We agreed a 50/50 for any sale but there was nothing drawn up on how we'd deal with it.
I didnt think he had to pay me anything for rent as its a mortgage we share. I did a google search a couple years back which suggested i wouldnt have a leg to stand on.

Why not, he'd have been paying to stop you moving a lodger in.


Anyway too late now.


Tell him you can no longer afford it, but as there will be a debt to you both if you sell you are happy if he wants to pay all the mortgage. And then stop paying the mortgage.


Best option unless you have money to burn to force a sale in which you then still owe more!

moneyistooshorttomention

I am surprised to see him being described as a "friend" by you. Surely "former friend" is more accurate in the circumstances - ie he's trying to rip you off?

NB; Don't forget you are entitled to put a lodger in your room in your joint flat (ie the one you were occupying till you moved out).

This lodger would get half-share of the use in ALL facilities in the flat (the same way as you did) obviously.

Neily23

Thanks all for the replies, I think a solicitor threat is best for now to see where it goes. I don't mind losing out on the sale really. IO can get a loan for the balance of my half no problem which at least gives me an end date whereas at the moment i'm just paying indefintely. If it's sold, it's him who stands to lose as he can't get a loan and also loses a property which is my argument.

BrassicWoman

move in and take your noisiest child with you.