What Circumstances Can You Force A House Sale In The UK?

Forcing a house sale can occur under several circumstances including; disagreements among co-owners, mortgage arrears, cases of bankruptcy, government compulsory purchases, council tax debts, or to cover care home fees.

In the United Kingdom, there are legal mechanisms in place to allow parties to force the sale of a house in specific situations. While court action is a common route, alternatives exist that can sometimes be more advantageous such as direct negotiation, mediation, an owner buying out the others, or opting for a quick sale with a reputable cash-buying company.

What Circumstances Can You Force A House Sale In The UK

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At Cash House Buyer Guru, our mission is to guide individuals through the home-buying sector, ensuring they make informed decisions and avoid untrustworthy companies. We understand the importance of choosing reputable companies to work with and then trying to force the sale of a property.

Our goal is to empower homeowners to do this by offering resources and advice that help them to navigate the industry successfully while avoiding unnecessary stress and costly mistakes.

Read on for clear and straightforward advice that will help you understand the intricate details of joint property ownership, the process of obtaining an Order for Sale, and how to navigate situations where one owner or partner refuses to sell. Learn about alternatives to court action and how quick sale solutions can expedite the process.

What Situations Can Lead To A Forced House Sale?

There are several circumstances where you may be able to legally force the sale of a property:

Disagreements between Co-owners: If a property is jointly owned and one owner wishes to sell but the other does not, the party wanting to sell can apply to the court for an ‘Order for Sale’. This is most common in instances of divorce & separation with a family home, or disputes between investors or inheritors.
Mortgage Arrears or Unpaid Debts: If mortgage payments are not kept up-to-date, the lender (typically a bank) can force a sale in order to recover the money owed to them. This is known as repossession.
Bankruptcy: If a property owner goes bankrupt, the appointed trustee can force the sale of the property to distribute the proceeds among creditors.
Compulsory Purchase: The government or local authority has the right to force the sale of a property for certain purposes, such as infrastructure development or if the property is deemed a public nuisance.
Care Home Fees: Local authorities can force the sale of a property to cover the costs of care home fees.
Council Tax Arrears: If a property owner has significant council tax arrears, the local council can apply for a charging order to force the sale of the property to recover the debt.

These are complex situations and usually require legal assistance. Consulting with a reputable advisor can provide guidance and potentially speed up the process in certain scenarios.

Why is a Cash Sale Company Useful During a Forced House Sale?

A forced property sale, whether instigated by disagreements between legal owners and co-owners, debt recovery, or a court order, can often be a stressful and complicated process. Engaging with a reputable cash sale company can prove beneficial in such situations for several reasons:

Speed: Cash sale companies can expedite the sale process significantly, often completing transactions within a few weeks. This is particularly useful in forced sale situations where time is often of the essence.
Certainty: With a cash sale, the risk of the sale falling through due to mortgage issues or chain breaks is eliminated. This provides a much-needed certainty in forced sale situations.
Ease: Cash sale companies handle most of the paperwork, reducing the administrative burden on the seller. They can also provide guidance on legal procedures, further simplifying the process.
Cost Savings: By bypassing estate agents, you save on commission fees. Furthermore, some cash-buying companies also offer to cover legal fees, reducing the financial burden.
Discretion: Forced sales can often be a sensitive matter. Cash sale companies offer a private and discreet service, keeping your business confidential.
Condition of the Property: Cash buyers usually purchase properties ‘as is’, removing the need for renovations or repairs before the sale

Further reading: Who is the best cash buying company?

Who Pays The Legal Fees In A Forced House Sale?

The responsibility for paying the legal fees will vary depending on the circumstances that led to the forced sale, and the parties involved. For example:

Order for Sale: If an owner has applied for an Order for Sale due to a dispute with a co-owner, each party would typically be responsible for their own legal costs. However, the court has the discretion to order one party to pay part or all of the other party’s costs based on the specifics of the case.
Repossession due to Mortgage Arrears: In cases of repossession, the lender will often add any legal fees they incur to the outstanding mortgage balance. This means the homeowner effectively pays these costs.
Bankruptcy: If a forced sale occurs due to bankruptcy, legal fees are usually paid from the bankrupt individual’s estate, meaning the costs would be taken from the proceeds of the sale before any remaining funds are distributed to creditors.
Compulsory Purchase or Council-Enforced Sale: When the government or local council forces a sale, the legal fees are often the responsibility of the homeowner. However, the specific legislation or terms of the order may dictate otherwise.

In some cases, if you’re working with a cash-buying company, they may offer to cover legal fees as part of their service. This is a valuable benefit that can help reduce the financial burden of a forced sale. As always, it’s recommended to seek legal advice to fully understand your obligations and potential liabilities.

How Much Does It Cost To Force The Sale Of A House?

Forcing the sale of a house involves several costs, primarily legal and court fees. The specific amounts can vary significantly depending on the situation, the professionals you engage with, and the duration of the entire process. Here are some estimates:

Legal Fees: This typically involves hiring a solicitor to guide you through the process and represent your interests. Fees can range from £500 to £2,000 or more, depending on the complexity of your case.
Court Fees: If you need to apply for an Order for Sale, there will be court fees involved. This is likely to be in the region of £155 but is subject to change.
Valuation Fees: If the court requires a valuation of the property, expect to pay anywhere from £150 to £600, depending on the size and type of property.
Estate Agent Fees: If you’re using an estate agent to sell the property, fees can range between 1-3% of the sale price.
Cash Buying Company Fees: If you choose to sell through a cash buying company, some may offer to cover legal fees, and there would be no estate agent fees. But the purchase offer would usually be below market value.

Cost Summary Table

Cost Type
Legal fees
Court fees
Valuation fees
Estate agent fees
Cash buying company

Estimated Range
£500 – £2000
£155
£150 – £600
1% – 3% of sale price
Below market value

Remember, these costs are estimates and actual costs may vary based on individual circumstances. Always consult with a solicitor or professional advisor to understand the potential costs associated with forcing the sale of a house.

Applying For A Court Order To Force The Sale Of Property

Applying for an Order for Sale involves preparing a claim form, drafting a witness statement detailing your reasons for the request for sale, and paying a court fee. The documents are then served to the other owner(s) before attending a court hearing where a decision is made.

Outcomes of an Order for Sale

When a court reviews an application for an Order for Sale, several outcomes are possible:

Sale Granted: The court may grant the sale, allowing you to sell the property.
Sale Refused: The court may refuse the sale but make an order regulating the right to occupy the property.
Sale Granted but Suspended: The court could grant the sale but suspend it under certain conditions.
Partitioning Ordered: The court may order a partitioning of the co-owned property.

Are There Alternatives To Court Action?

There are several alternatives to court action when considering forcing a sale:

Negotiation: A simple conversation can sometimes resolve the issue. The parties can agree to sell the property or one owner can agree to buy out the other’s share.
Mediation: If direct negotiation isn’t successful, an impartial third party (a mediator) can help facilitate a resolution. Mediation can be less confrontational and stressful than court action.
Buying Out The Other Owner(s): One owner can offer to buy the other’s share in the property, effectively taking full ownership and negating the need for a sale. This can be a straightforward solution if one owner wishes to remain in the property and the other wants to sell.
Quick Sale Through a Cash Buying Company: Cash buying companies, like those recommended by the Cash House Buyer Guru, can provide a quick, hassle-free solution. These companies often handle much of the paperwork, can offer to cover legal fees, and complete the transaction in a shorter timeframe than traditional sales.
Partitioning of the Property: In some cases, it might be possible to physically divide the property or divide the interests in the property, allowing each owner to do as they wish with their section. This is more common with large properties or land.

Conclusion

You should now have a good understanding of the circumstances you can force property sales in the UK.

To recap, a house sale can be forced under several circumstances including:

disagreements between co-owners
mortgage arrears
bankruptcy
compulsory purchase by the government
council tax arrears
care home fees

The process often involves court action, but alternatives like negotiation, mediation, buying out the other owner, or engaging a quick sale through a cash buying company can provide suitable alternatives.

Each scenario is distinct, requiring careful consideration and often, legal advice to ensure you are making an informed decision that suits your specific personal circumstances well.

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FAQs On Forcing Property Sales

Can I Force The Sale Of My House?

Yes, you can force the sale of your house if it is co-owned and the other owner(s) are refusing to sell. You would need to apply for an Order for Sale from the court. This is common in situations like divorce or disagreements between joint owners.

Can I Force The Sale Of A Jointly Owned Property?

Under the Law of Property Act 1925, if you jointly own a property and wish to sell it but the other owner(s) disagree, you have the right to apply to the court for an ‘Order for Sale’. This legal recourse is a form of quick sale solution which can help those facing circumstances beyond their control, such as disagreement with a co-owner.

Can The Council Force The Sale Of Property?

Yes, local councils can force the sale of a property, typically due to unpaid debts or if the property is considered a public nuisance.

Joint Owner Scenarios – Joint Tenants vs Tenants in Common

Consider a scenario where a house was bought as ‘Tenants in Common’, with one party wanting to sell, while the other party doesn’t. In such cases, the party interested in selling can apply for an Order for Sale. It’s crucial to understand the differences between ‘Joint Tenants’ and ‘Tenants in Common’ when it comes to navigating forced sales:

Joint Tenants jointly own the entire property, and if one owner dies, their share passes automatically to the surviving owner(s).
Tenants in Common, on the other hand, each own a specific share of the property, which can be passed on to someone else upon their death.

In a ‘Joint Tenants’ scenario, forcing a sale becomes more complex as you first need to sever the joint tenancy agreement to become ‘Tenants in Common’.

Cash House Buyer Guru