Business & Finance1 min ago
Shared ownership of a house
13 Answers
I bought a house with my friend nearly two years ago. We have a mortgage in joint names and no seperate agreement with a solicitor. We haven't been getting on and I have decided that I want to leave and buy a house on my own. The person who I live with will not move out and sell their half of the house. I have given him the choice of buying my half but he doesn't want to do that either. Is there anything I can do? How do I get him to move out? Worst case scenario can I sell just my half to someone else? Can I rent my half out? I need some answers please.
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If you are in a joint tenancy simply issue a unilateral notice cancelling the joint tenancy and stating that henceforth you are tenants in common. Phone your local District Land Registry Office who will guide you through the process of changing the registration to tenants in common. As a tenant in common you can sell or rent out your half. You cannot force him to move out, only the mortgage lender can do that if the mortgage is not paid.
If you are still there Golden Shred .. how would that work between a husband and wife .. could he in effect go along and do the same, in which case in the event of a divorce and say she would have been awarded a larger share, would she then only be able to get 50%. Or would it be different if the parties are married. Just wondered out of interest !
A joint tenancy of two people is a 50/50 split. Either party in a joint tenancy can issue a unilateral notice without warning to the other ending the joint tenancy and substituting a tenancy in common. The notice can be oral or in writing and cannot be challenged. Obviously this then automatically creates a 50/50 tenancy in common. However, if one party thinks that 50/50 is inequitable then (not waiting for divorce) an injunction stopping Registration of a 50/50 tenancy in common must be obtained, a Restriction entered in the Register of the Property at the Land Registry, and the matter pleaded in court.
It has just occurred to me that I intended to include a further bit in both of my answers, but forgot. Must be the heat! I meant to add that once the tenancy in common is established (in any proportion 30/70, 50/50, 60/40 etc) any member of the tenancy in common can apply to a court saying that the members of the tenancy in common cannot agree upon how the property should be managed and asking for an Order that the property be sold and the proceeds divided accordingly. These Orders are never refused in my experience. If the relationship is hopeless, then it is best to do this quickly (not waiting for divorce) because people disappear and trying to get an Order to sell a property when one part owner cannot be found is a very expensive long drawn out process not guaranteed to succeed.
If your friend does not contest the application for an Order it will cost you �1000 - �1500 including VAT, exes and Land Registry. If your friend contests the application it will be a 3 day hearing and to get it into court you will have to find �10000 to �12500 all in over around 6 months. When you get the Order your legals will obtain costs against your friend which will return you 80% - 90% of your outlay but not more(the fee for Registering the Restriction alone is about �60 but the Land Registrar will not take action without an injunction which would cost about the same as an application for an Order to sell).
I've just returned to this, and if your question on costs was how much does it cost at the Land Registry to change the Registration from joint tenants to tenants in common after you have issued the unilateral notice the answer is also about �60. You can do this yourself by phoning your District Land Registry Office and letting them lead you through the process. The LR will notify your friend, and if he objects to the 50/50 its then off to court as I have set out above unless you can agree some other proportion between yourselves.
Its also possible to apply to Court for an Order for Sale without creating a tenancy in common. I don't know the costs or likelihood of success - perhaps you should consult a solicitor if you can't talk sense into your friend.
If you did get a tenancy in common and then tried to sell your half you would have problems. Its value would be a fraction of the value of half the property with vacant possession of the whole, & you might well find no-one willing to buy when they realised they would have to share with your friend.
If you did get a tenancy in common and then tried to sell your half you would have problems. Its value would be a fraction of the value of half the property with vacant possession of the whole, & you might well find no-one willing to buy when they realised they would have to share with your friend.
Golden Shred - Please correct me (again) if I'm wrong, but I understand that in some cases (including a couple who have been engaged in the last 3 years) application can be made for an Order for Sale by one of the parties under the Married Womens Property Act 1882.
In other cases (unmarried or same sex etc.) application can be made under Section 14 of the Trusts of Land & Appointment of Trustees Act 1996.
I have not seen the 1882 Act, but in the 1996 Act I cannot find a mention that a tenancy in common is needed - in fact, one of the consequential amendments is to earlier legislation about joint tenancies.
In other cases (unmarried or same sex etc.) application can be made under Section 14 of the Trusts of Land & Appointment of Trustees Act 1996.
I have not seen the 1882 Act, but in the 1996 Act I cannot find a mention that a tenancy in common is needed - in fact, one of the consequential amendments is to earlier legislation about joint tenancies.
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