How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Clare Your Own Question

Clare
Clare, Solicitor
Category: Law
Satisfied Customers: 33956
Experience:  I have been a solicitor in High Street Practice since 1985 with a wide general experience.
13262538
Type Your Law Question Here...
Clare is online now

Complicated property conflict regarding the sale of a buy to

Resolved Question:

complicated property conflict regarding the sale of a buy to let property owned by 2 friends with only one on the title deeds
Submitted: 1 year ago.
Category: Law
Expert:  Clare replied 1 year ago.
HiThank you for your questionMy name is ***** ***** do my best to help you but I need some further information firstWhat is it that you wish to know?
Customer: replied 1 year ago.
I bought an investment property around 2 years ago. I invited a Greek friend (a Greek national) to participate in buying this property together as it seemed a good investment at the timeHe didn't have the money then so I bought the property and took out a mortgage until he sold another property he had to buy into his share. Unfortunately when he was ready to buy his share I realised that there were severe mortgage penalties if the mortgage was repaid early. This also put me in a very difficult position as I was looking to release the mortgage in order to get another which would not have been possible while this one was still unpaid. So I suggested that he loan me the money - a total of £490k - which would be secured on 2 other mortgage free properties I owned which are worth at least that amount if not more. We did a legal agreement through a solicitor who acted for him but I ended up paying the fees. The agreement was a loan agreement for 2 years ending in November 2016 for £1500 per month "interest" which was really 50% of the rent I was receiving from the investment property. This ended up being a bad deal for me as I had to pay the mortgage and tax on the remaining income which left me with around £500 per month less than him.We did not make and there exists no formal agreement or deed of trust on the investment property and the investment property is not mentioned in the loan agreement however I do not deny nor intend to deny that he has a 50% interest in that propertySince then my financial circumstances have deteriorated for unexpected reasons beyond my control and I need to sell that investment property, clear the mortgage, pay him back and start clearing other debtsIn September last year I offered my share to him and also a friend of his AT COST PRICE. However neither of them took me up on my offer and no agreement was made to sell my share at that price. Now 6 months later the current tenants have offered to buy the property at a fair price which allows both of us to get out with our full investment, a small profit as well as a much lower mortgage redemption fee than if we tried to sell it the year beforeHe's now claiming that I have a "duty and obligation" to sell him my share at cost price because that's what I offered in an email 6 months ago. He's also claiming that he sold another property to buy my share and he wants to me to stick to the "agreement" which doesn't exist. Needless to say both are outright lies. He made a decision to sell that other property long before I sent that email in September 2015 and there was no agreement made 6 months ago or since then for him to buy my share at that price. He has "assumed" that he is entitled to this "deal" for whatever reason I do not knowI do not want to lose the sale to the tenants who have made the offer. However he is trying to get me to stop that sale because he says firstly it's too low and second tha he is "entitled" to my share at cost price which is completely ridiculousI have asked him to simply match the existing offer which he considers low and I'll be happy with thatSo finally my question is can i go ahead and sell the property if he refuses to match the price? He has the money. Can he legally stop me from selling it? There is no formal agreement in place, no contract, no deed of trust and the title deeds are fully in my name. What are the possible legal complications of me doing that?
Customer: replied 1 year ago.
hi can you confirm you are still online and this is being dealt with? Thanks
Expert:  Clare replied 1 year ago.
How much is the property worth and how much is outstanding on the mortgage?
Customer: replied 1 year ago.
value(###) ###-#### ***** mortgage and redemption fee is £582k. I would however make up his share with additional cash so he doesn't lose anything. In other words the only deduction will be the mortgage redemption fee
Customer: replied 1 year ago.
from the gross sale, I would deduct just the legal expenses and mortgage redemption fee. Balance will be split 50/50
Customer: replied 1 year ago.
he originally put in 490k 15 months ago. He will get back £500k after fees +he's had 15 months of 1500 per month interest
Customer: replied 1 year ago.
I get back the same, no more, no less
Customer: replied 1 year ago.
sorry, are you still online? I don't mind waiting it's just I'm not sure if this is still working. Thanks
Expert:  Clare replied 1 year ago.
I am sorry - I have to work through my list in order and each time you post you drop to the bottom of the list - it is a little frustrating lol.To be sure I understand.Although the original agreement was that you would own the property together, for a combination of reasons was has actually happened is that he has provided loan secured on two alternative properties.is that correct?
Customer: replied 1 year ago.
yes correct
Customer: replied 1 year ago.
Hi Clare. Are you still there? Any idea when you can get back to me with your opinion? Sorry I'm not used to how this is all supposed to work. David
Expert:  Clare replied 1 year ago.
My apologies for the delay - and evening meetingFrom what you have said there is no reason why you shoudl not go ahead with the sale and no basis on which you could be prevented from doing so.You are prepared to offer the other person 50% of the equity - generous in the circumstances - and he has no interest in the LEGAL ownership - only in the proceeds of sale.An offer made six months ago and not accepted is not binding on you now.Go ahead with the sale and provided you give him the balance between 50% and the amount that you need to pay to discharge the secured loans then there is no claim that he can make.Please ask if you need further detailsClare
Clare, Solicitor
Category: Law
Satisfied Customers: 33956
Experience: I have been a solicitor in High Street Practice since 1985 with a wide general experience.
Clare and other Law Specialists are ready to help you
Customer: replied 1 year ago.
thanks Clare. I appreciate your response and it puts my mind at rest. Many thanks and until the next time....
Expert:  Clare replied 1 year ago.
You are most welcome - I hope all goes well

What Customers are Saying:

 
 
 
  • Thank you so much for your help. Your answers were really useful and came back so quickly. Great! Maggie
< Previous | Next >
  • Thank you so much for your help. Your answers were really useful and came back so quickly. Great! Maggie
  • A quick response, a succinct and helpful answer in simple English. I believe I can now confront the counter party with confidence -- worth the 30 bucks! Rick
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
 
 
 

Meet The Experts:

 
 
 
  • Jo C.

    Jo C.

    Barrister

    Satisfied Customers:

    30316
    Over 5 years in practice
< Previous | Next >
  • http://ww2.justanswer.co.uk/uploads/EM/emus/2015-7-7_192327_bigstockportraitofconfidentfemale.64x64.jpg Jo C.'s Avatar

    Jo C.

    Barrister

    Satisfied Customers:

    30316
    Over 5 years in practice
  • http://ww2.justanswer.co.uk/uploads/BE/benjones/2015-12-1_0437_ennew.64x64.jpg Ben Jones's Avatar

    Ben Jones

    UK Lawyer

    Satisfied Customers:

    11553
    Qualified Solicitor - Please start your question with 'For Ben Jones'
  • http://ww2.justanswer.co.uk/uploads/BU/Buachaill/2012-5-25_211156_barrister5.64x64.jpg Buachaill's Avatar

    Buachaill

    Barrister

    Satisfied Customers:

    1754
    Barrister 17 years experience
  • http://ww2.justanswer.co.uk/uploads/JO/jojobi/2013-3-19_0265_maxlowryphoto.64x64.jpg Max Lowry's Avatar

    Max Lowry

    Advocate

    Satisfied Customers:

    894
    LLB, 10 years post qualification experience
  • http://ww2.justanswer.co.uk/uploads/UK/UKLawyer/2012-4-12_9849_F2.64x64.jpg UK_Lawyer's Avatar

    UK_Lawyer

    Solicitor

    Satisfied Customers:

    750
    I am a qualified solicitor and an expert in UK law.
  • http://ww2.justanswer.co.uk/uploads/KA/Kasare/kasare.64x64.jpg Kasare's Avatar

    Kasare

    Solicitor

    Satisfied Customers:

    402
    Solicitor, 10 yrs plus experience in civil litigation, employment and family law
  • http://ww2.justanswer.co.uk/uploads/OS/osh/2015-7-7_19268_gettyimagesb.64x64.jpg Joshua's Avatar

    Joshua

    Lawyer

    Satisfied Customers:

    8199
    LL.B (Hons), Higher Prof. Dip. Law & Practice
 
 
 

Related Law Questions