advice about freehold when it comes to sale of a property

[Binuchander]

My sister and I jointly own a flat - it was leasehold when first bought.

A few years ago, the option was available to buy the freehold and she paid £2000 for this. I did not contribute at the time as I didn't have the spare money.

We are now selling the flat and my sister is saying the first £2000 of the sale amount should go to her before the rest is divided.

Please can anyone advise whether this is accepted practice. She forgot she owned the freehold until recently and we are close to exchanging contracts with the buyer.

[PallasAthena]

You ask "whether this is accepted practice" rather than a strictly legal anlysis. Well it certainly seems a fair practice in this situation. I assume she purchased the freehold in your joint names but paid for all of it including your 50% as you were unable to afford it yourself at the time. Is that the position? If so it seems entirely reasonable that she should be reimbursed from the sales proceeds for the £1,000 she spent on your behalf. Her proposal achieves that.

You surely wouldn't want to get into a legal dispute with your sister over what must be a tiny amount of money relative to the flat's total sales value, would you?

[atticus]

What is being sold? The leasehold only, or leasehold and freehold?

[Binuchander]

Thanks for the responses. The freehold was bought solely in her name as she paid for it herself.

Atticus - the leasehold and freehold are being sold - does that make a difference?

[atticus]

Of course it does. The thing your sister paid 2 grand for is included in the sale. It may well have boosted the overall price.

[Binuchander]

Thank you, I understand now and will agree to her proposal.