Q&As

A property is owed by two parties as tenants in common in unequal shares. The parties are attempting to negotiate a settlement where the party in occupation will provide the non-occupying party with a lump sum settlement in return for the transfer of the property into the occupying party’s sole name. One party insists that 3% of the value of the property (the notional costs of sale) must be deducted when calculating the equity in the property, despite the fact that no sale will take place. Is that correct?

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Published on LexisPSL on 22/11/2017

The following Family Q&A provides comprehensive and up to date legal information covering:

  • A property is owed by two parties as tenants in common in unequal shares. The parties are attempting to negotiate a settlement where the party in occupation will provide the non-occupying party with a lump sum settlement in return for the transfer of the property into the occupying party’s sole name. One party insists that 3% of the value of the property (the notional costs of sale) must be deducted when calculating the equity in the property, despite the fact that no sale will take place. Is that correct?

This Q&A raises the problems which can arise when a relationship has broken down and the ownership of the couple’s jointly owned property needs to be resolved. What in theory should be a straightforward matter can quickly become complicated as each party adopts entrenched positions in respect of what may be the most valuable asset owned by the couple and which must now be divided to provide separate accommodation for each of them. Often the only way to resolve the matter is to sell the property on the open market so that the best price might be obtained. After any mortgage lending has been redeemed and the deduction of estate agents, legal and other costs, the proceeds are then divided between the parties in shares which they have hopefully been able to agree.

It is not always either possible or desirable for the prop

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