An unmarried couple Person A and Person B were together for 4 years before purchasing a property between them last October. Unfortunately the relationship broke down not long afterwards. Person A has remained in the property, person B moved out about 6 months ago. They are paying the mortgage between them and person A is paying the bills. Person A has put the property on the market for an unrealistic price and is refusing to lower it to a more saleable price. They have reached a stalemate. What are the legal rights of person B in this instance to either get person A out of the property or make them pay rent or lower the price. The situation is no longer amicable. Any advice as to the next stage would be gratefully appreciated.
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Hi Janet
Hindsight is a wonderful thing but they should have set all this out in an agreement at the time of purchase. Were they not advised to do so? Or was it suggested but they ignored it?Might be worth asking if this was discussed at the time (if you haven’t already done so).
As a non property person my thoughts would be could person B suggest to A they may stop paying the mortgage if the house price is not lowered to a more reasonable level? (How is the mortgage agreement set up?). If this would force A into a distressed sale they may be more amenable to put it on at a more reasonable price. Has B asked an agent for their view on a suitable price for marketing?
Have you asked a property lawyer, or maybe a litigator?
Good luck
Sara
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Person B could discuss a potential mortgage payment adjustment with Person A. Mortgage agreements vary, but it’s possible to negotiate. Seeking an agent’s opinion on a reasonable selling price is a good idea.
Sara is right of course. All co-owners of land, whoever they are, should ideally enter into an agreement about the essential management aspects of owning the property, not least the right of any one of them to demand a sale and the basic terms of any such sale.
However, B has substantial legal rights. The starting point is the registered title at the Land Registry. Are A and B registered as joint proprietors and if so is there a Form A restriction? This would prevent a future transfer of the property unless both A and B signed the transfer form TR1. When the property was purchased and the transfer sent for registration the Registry would have automatically asked joint transferees how they hold the title and then register a Form A unless the transferees persuaded them that this was not required.
If A has managed to become registered as sole proprietor B must act really swiftly because it is then possible for A to contract to sell and transfer the property alone. Although B would have actionable rights against A if the sale price was manifestly too low these are more uncertain and the ideal plan is to stop the sale. The Register can be viewed online by anyone and for a modest fee a copy can be requested. You simply search by addresshttps://www.gov.uk/get-information-about-property-and-land/search-the-register#:~:text=HM%20Land%20Registry%20holds%20records,title%20plan%20and%20title%20summary.
B’s (and A’s) rights are underpinned by the Act of 1996 https://www.legislation.gov.uk/ukpga/1996/47/contents. I draw your attention to some sections but B should not do any negotiating with A without taking legal advice. The dynamics of the relationship are clearly difficult and B may be unable to warn A off without legal backup. A conveyancer can advise you of how to notify the Registry to protect B’s interest against A. B should have a look at sections 6, 11, 12, 14, and 16. These are in legal language but a lay person will get the gist of it all and the clear understanding that one co-owner cannot do just what they like. Section 16 protects a purchaser who has no notice of the sellers’ respective rights. So B must take the initiative and seize the opportunity to prevent the sale on disadvantageous terms. This is vital if A is registered as a sole proprietor.
As I say if the title is in joint names with a Form A restriction if A tries to contract in their sole name they will get a rude awakening because they will not be able to complete and transfer good title to a buyer without B’s co-operation. A solicitor acting for any purchaser will spot this at a very early stage. Even so B should immediately search the Register and seek professional advice. Perhaps B’s warning A that B has researched the matter online, and will seek advice at A’s expense, will alone be sufficient to deter A. If A is using a known agent, B should tip them off. If the mortgage is in joint names, B can tip off the lender but that will make the lender jittery and should not be a priority because ultimately the lender will not care as long as the debt is paid off, which will be impossible for A to avoid if a solicitor is acting for A on the sale.
I am assuming that there is no doubt that both A and B own the property beneficially. If there is any doubt, legal advice about that is the top priority.
Jack Harper