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tdlawyer
tdlawyer, Lawyer
Category: Law
Satisfied Customers: 1096
Experience:  11 years experience of general practice.
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I own 50% of an industrial property worth approx £500,000

Resolved Question:

I own 50% of an industrial property worth approx £500,000 I want to sell it as I feel I can use the money better. The other 50% holder wants things to remain as they are.What do I do to force a sale?The possibility of friendly negotiation is sadly over.Bill
Submitted: 2 years ago.
Category: Law
Expert:  tdlawyer replied 2 years ago.

tdlawyer :

Hello, welcome to the website. My name isXXXXX can assist you with this.

tdlawyer :

Do you have any arrangement or agreement between you about the property other than 50:50 ownership?

Customer:

no

tdlawyer :

Okay. Then you can force a sale by issuing a claim in the county court using what's known as a Part 8 Claim Form.

tdlawyer :

You would ask the court for the sale on the basis that you cannot reach agreement.

tdlawyer :

It's a claim under the Trusts of Land and Appointment of Trustees Act 1996.

tdlawyer :

You can beta a Part 8 Claim form here: http://hmctsformfinder.justice.gov.uk/HMCTS/GetForm.do?court_forms_id=424

Customer:

what happens then

tdlawyer :

Then the court will decide whether to grant the order - you will get a hearing within about 2 months of issuing the claim form.

tdlawyer :

Most often the court will grant the order - it's pretty standard when joint owners cannot agree what to do.

Customer:

does this mean the property can be put up for sale and the resultant money split 50-50 with no minimum being set or other caveats?

tdlawyer :

The court will usually set a min sale value but yes, there are no other conditions.

Customer:

how does the court arrive at the minimum sales value?Will there be any chance the price will be too high to prevent a reasonaable sale?Are there any extra charges to me in this process?

tdlawyer :

It will look at evidence filed by the parties from estate agents/surveyors etc. If you apply, you will need to get such a report to assist the court in setting a minimum sales value.

tdlawyer :

The only extra cost is the cost of instructing the valuer. Usually, this is about £500 or so plus VAT.

tdlawyer :

It obviously depends on the people being instructed though.

Customer:

Do I have to get this value before the court grants the order

tdlawyer :

You do really, yes, unless the other owner agrees a valuation figure with you, in which case, you can just tell a court that's the valuation is agreed but that you cannot agree on what should happen to the property.

tdlawyer :

The court can make an order without a valuation, but it's very rare indeed for it to do that. It's best to get the valuation to start with.

Customer:

will the court take a percentage off the valuation price in order to facilitate the sale?It is very difficult to get a full asking price.Surely it is possible to ask and settle for a reasonable low price provided it is acceptable to me?

tdlawyer :

No, the court doesn't work like that. You pay a claim fee, about £120, and that's it - it doesn't take anything from the sale monies.

tdlawyer :

Yes, it's possible that once there has been an attempt to market, and it doesn't sell, the court will agree to reduce the sale price, but you have to try and sell at the highest price for obvious reasons.

Customer:

I used the word "off" not "of" however your second reply answered my question.Next point.Is there anything the other 50% holder can do to frustrate my forced sale?

tdlawyer :

In reality there is very little the other owner could do to prevent the sale. It's the normal thing for the court to do - order a sale. Sometimes, the court takes a slightly different approach with residential homes where families live, but not for industrial properties.

tdlawyer :

Is there anything you would like me to expand on for you?

Customer:

Yes Is the answer the same if I own 50% of a company which owns the property?

tdlawyer :

Kind of - the company would need to be wound up, which is done by way of a winding up petition rather than a claim at court.

tdlawyer :

And it's done on the Just and Equitable basis - which is like a normal winding up petition, but not based on debt.

Customer:

can a 50% owner get a winding up order for a company he is no longer interested in if the other 50% holder does not want this action?

tdlawyer :

Yes.

tdlawyer :

You would get the winding up petition issued that I mentioned.

tdlawyer :

That is, unless there is an agreement between the owners that prevent them doing that. If no agreement, then a winding up petition is what you would do to resolve a 50:50 deadlock.

Customer:

how do I do this?

tdlawyer :

What, a winding up petition?

tdlawyer :

Have a look at this guide from the Insolvency Service, it's got good commentary and it has links to all the forms: http://www.insolvencydirect.bis.gov.uk/technicalmanual/Ch37-48/chapter45/part2/part_2.htm

Customer:

Yes how do I as a 50% shareholder of a company get out and recover what I can?

tdlawyer :

Have a look at this guide from the Insolvency Service, it's got good commentary and it has links to all the forms: http://www.insolvencydirect.bis.gov.uk/technicalmanual/Ch37-48/chapter45/part2/part_2.htm

tdlawyer :

It's very useful.

Customer:

Does this mean I can get out and recover my share of whatever value remains in the company without the other party being able to frustrate me?

tdlawyer :

Yes.

Customer:

AS simple as following the above guide from the insolvency service?

tdlawyer :

It should be, yes.

tdlawyer :

Are you happy with the service you're receiving this evening?

Customer:

From the above you are saying that I can get out of and recover whatever money is available from 1.a property of which I am a 50%owner and 2.a company of which I am a 50%shareholder even though the other 50%holders do not want this to happen and want the present situation to continue.Any reservations

tdlawyer :

Yes, that's an accurate summary. And no, no reservations.

tdlawyer :

Are you happy with the service you're receiving this evening?

Customer:

Thank you for being so helpful;it just seems too good to be true.The proof will be in the pudding

tdlawyer :

You're welcome. It's pretty straightforward stuff, and if you pop into a local Citizens Advice Bureau, they'll help you do this without charge.

tdlawyer, Lawyer
Category: Law
Satisfied Customers: 1096
Experience: 11 years experience of general practice.
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