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F E Smith
F E Smith, Advocate
Category: Law
Satisfied Customers: 9891
Experience:  I have been practising for 30 years.
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Invested in property years with sister. She did not

Resolved Question:

Invested in property for five years with sister. She did not want to sell when five years up. Did not pay me. Ten years further from then I need my money. House increased 2.5 times purchase price.. Is my investment worth that pro rata? She is staying in house and has had the benefit of a further 10 years on my investment.
Submitted: 1 year ago.
Category: Law
Expert:  F E Smith replied 1 year ago.
Can you explain your situation in more detail please?Is the property in joint names?It is not in joint names, why not?Why did you not press the sale after the initial 5 years?How much did each of you invest?Who paid the mortgage?I also need details of the house value and the amounts invested.Thanks.
Customer: replied 1 year ago.
We are tenants in common. Both on mortgage. Both on deeds as above. Invested as part of 5 yr deal. When time to sell.. Sister would not. I stopped paying mortgage. She moved lodger in to help her.
Further 10 years (15) from day one when I invested. I now want my share. £18400. Is what I paid over 5 years. House value £350k now. She is to stay in house and I will remove myself from mortgage and deeds once I'm paid
Customer: replied 1 year ago.
Bought house for £152,000 initially
Expert:  F E Smith replied 1 year ago.
She can buy you out if she can afford to or if she cannot afford to, the property must be sold. If she will not agree to sell it, you can apply to court for an Order for Sale under the Trusts of Land Appointments of Trustees Act and also ask the court to award court costs against her for refusing to sell.The rule with regard to jointly owned houses if two people are not married or civil partners is that the equity (after the mortgage has been paid and any selling agents and solicitors costs), will be divided equally between the two owners in the absence of any agreement or deed of trust which says anything different. It does not matter that your sister paid the mortgage because she had the benefit of living in the house when you did not.If your sister made any improvements to the property which has enhanced its value her contribution in respect of the improvements would be taken into account before the division of the proceeds. So the answer to your question as to whether your investment is pro rata, is that subject to your sister being paid in respect of any improvements, yes it is pro rata.If your sister disputes this, she should take legal advice. The leading case is Kernott v Jones in respect of this issue.Please do not forget to rate the service positively. It’s an important part of the process so that experts get credit.Best wishesFES
Customer: replied 1 year ago.
So the fact I just want my 18400 x percentage house has increased to date is a justified amount. About 46k roughly. And I walk. She stays. That's it??? That is all I want so just making sure what asking is OK to do so.
Expert:  F E Smith replied 1 year ago.
As it’s just the property owned by two of you then it’s a simple mathematical calculation. However the amount of money that you put in is not relevant. It doesn’t matter if you put unequal amounts of money in, the case law states that you get equal money out subject to the adjustment for improvements done by the person who was in residence.
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