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Clare, Solicitor
Category: Law
Satisfied Customers: 35076
Experience:  I have been a solicitor in High Street Practice since 1985 with a wide general experience.
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Complicated property conflict regarding the sale of a buy to

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complicated property conflict regarding the sale of a buy to let property owned by 2 friends with only one on the title deeds
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 2 years 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 2 years ago.
hi can you confirm you are still online and this is being dealt with? Thanks
How much is the property worth and how much is outstanding on the mortgage?
Customer: replied 2 years 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 2 years ago.
from the gross sale, I would deduct just the legal expenses and mortgage redemption fee. Balance will be split 50/50
Customer: replied 2 years 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 2 years ago.
I get back the same, no more, no less
Customer: replied 2 years ago.
sorry, are you still online? I don't mind waiting it's just I'm not sure if this is still working. Thanks
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 that correct?
Customer: replied 2 years ago.
yes correct
Customer: replied 2 years 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
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 and other Law Specialists are ready to help you
Customer: replied 2 years ago.
thanks Clare. I appreciate your response and it puts my mind at rest. Many thanks and until the next time....
You are most welcome - I hope all goes well