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Good morning,
When my divorce became absolute in September 2007 the court order was for the family property (both in my name and ex partner) to go to her and the second property (only in her name) to go to me.
At the time, due to my poor credit rating, the bank refused to pass me the deeds and mortgage and , agreed with ex partner verbally, I moved in the property and took care of all costs and maintenance for 'my' property. I have been paying her mortgage monthly directly to her (she game me the amount pay) and never failed.
Recently (October 2019) I decided to sale the property and move elsewhere. Made her aware of my intentions, she consented and when the solicitor was appointed she also presented the court order to the firm. She asked at the time that I sign a document to confirm I would be responsible to all costs.
I have contacted another solicitor who (after charging me the same fee as a property selling fee) confirmed the above.
Proceedings were to come directly to me and I was to pay all costs.
All seemed smooth and easy until, because of the pandemic, the buyer pulled the plug (I refused to lower the price) and the house went off the market.
I started considering whether to try and sale again or to obtain a mortgage.
Suddenly the Estate agent receives an email from my ex partner where she demands for the property to go back in the market.
I spoke to the agency and declined my consent and stated I would only consider the sale if I was to receive a written consent for the proceedings and sale decision to be mine only.
At this point, I have received a letter from another solicitor (appointed by my ex wife) demanding a response within 7 days and proposing 2 ways of resolving:
Pursuant to the order dated 13 September 2007 property were to be transferred to you (see attached). This, unfortunately, did not happen as your low credit rating at the time meant the lender would not transfer the mortgage and consequently, the property is still held by our client. This has caused her problems over the years, in particular hindering her ability to borrow whilst you enjoyed rental income and now that it is agreed the property will be sold, there are additional issues which need to be resolved, such as the payment of capital gains tax , fees relating to the sale and property outgoings, none of which our client should pay for. Of the above, CGT is the most important issue and our client has been advised that if the property were to be sold tomorrow, HMRC would assume she was responsible for CGT. There are two possible solutions to this problem, one of which our client would like to agree with you:
1 That the mortgage and property be immediately transferred to you and you discharge your CGT liability upon sale. As HMRC may query why our client is not liable for CGT, she would need to complete a tax return stating her CGT liability is nil, attach a Declaration of Trust signed by her and you and a short letter explaining the background. Our client understands that HMRC is likely to accept this, but in order to protect our client, you would be required to indemnify her.
2. Sell the property now with my client assuming personal responsibility for CGT, which would be paid from the proceeds of sale before distribution of the balance to you.
I read in their letter: "This has caused her problems over the years, in particular hindering her ability to borrow whilst you enjoyed rental income" when she NEVER mentioned / chased me to sale in the past and I lived in the property not rented it out..
My response was the following:
Dear Mrs Sollicitor,
I'm writing in response to your letter regarding 'ex wife and the 'property'
Following the court order date September 13th 2007 I moved in the property (few months after when it became available) and lived there ever since.
Indeed my poor financial situation at the time did not allow the name change and since then I took care of all expenses related to the property. Monthly mortgage repayments via bank transfer each month to exwifes's account (amount payed according to what she has stated it was).
My understanding, as I am the Beneficial owner of the property and I have lived there since 2008, is that 'CGT' fees are not applicable in this case . (spoke to HMRC in regards).
I am currently in the process of seeking legal advice and also in the process of applying for a mortgage to transfer the property in my name and therefore going for 'Option 1'
Option 2 I would consider only If I am to receive the full proceeds (assuming full responsibility of all costs related) and decide on the sale price.
Yours sincerely
me
* I have sent the response 2 weeks ago and not received a reply since * I have told the estate agents I will allow people to view the property but will not go further until I have a written confirmation from her.
I hope someone can advise me and even point me to someone professional who could assist me.
Thank you in advance
When my divorce became absolute in September 2007 the court order was for the family property (both in my name and ex partner) to go to her and the second property (only in her name) to go to me.
At the time, due to my poor credit rating, the bank refused to pass me the deeds and mortgage and , agreed with ex partner verbally, I moved in the property and took care of all costs and maintenance for 'my' property. I have been paying her mortgage monthly directly to her (she game me the amount pay) and never failed.
Recently (October 2019) I decided to sale the property and move elsewhere. Made her aware of my intentions, she consented and when the solicitor was appointed she also presented the court order to the firm. She asked at the time that I sign a document to confirm I would be responsible to all costs.
I have contacted another solicitor who (after charging me the same fee as a property selling fee) confirmed the above.
Proceedings were to come directly to me and I was to pay all costs.
All seemed smooth and easy until, because of the pandemic, the buyer pulled the plug (I refused to lower the price) and the house went off the market.
I started considering whether to try and sale again or to obtain a mortgage.
Suddenly the Estate agent receives an email from my ex partner where she demands for the property to go back in the market.
I spoke to the agency and declined my consent and stated I would only consider the sale if I was to receive a written consent for the proceedings and sale decision to be mine only.
At this point, I have received a letter from another solicitor (appointed by my ex wife) demanding a response within 7 days and proposing 2 ways of resolving:
Pursuant to the order dated 13 September 2007 property were to be transferred to you (see attached). This, unfortunately, did not happen as your low credit rating at the time meant the lender would not transfer the mortgage and consequently, the property is still held by our client. This has caused her problems over the years, in particular hindering her ability to borrow whilst you enjoyed rental income and now that it is agreed the property will be sold, there are additional issues which need to be resolved, such as the payment of capital gains tax , fees relating to the sale and property outgoings, none of which our client should pay for. Of the above, CGT is the most important issue and our client has been advised that if the property were to be sold tomorrow, HMRC would assume she was responsible for CGT. There are two possible solutions to this problem, one of which our client would like to agree with you:
1 That the mortgage and property be immediately transferred to you and you discharge your CGT liability upon sale. As HMRC may query why our client is not liable for CGT, she would need to complete a tax return stating her CGT liability is nil, attach a Declaration of Trust signed by her and you and a short letter explaining the background. Our client understands that HMRC is likely to accept this, but in order to protect our client, you would be required to indemnify her.
2. Sell the property now with my client assuming personal responsibility for CGT, which would be paid from the proceeds of sale before distribution of the balance to you.
I read in their letter: "This has caused her problems over the years, in particular hindering her ability to borrow whilst you enjoyed rental income" when she NEVER mentioned / chased me to sale in the past and I lived in the property not rented it out..
My response was the following:
Dear Mrs Sollicitor,
I'm writing in response to your letter regarding 'ex wife and the 'property'
Following the court order date September 13th 2007 I moved in the property (few months after when it became available) and lived there ever since.
Indeed my poor financial situation at the time did not allow the name change and since then I took care of all expenses related to the property. Monthly mortgage repayments via bank transfer each month to exwifes's account (amount payed according to what she has stated it was).
My understanding, as I am the Beneficial owner of the property and I have lived there since 2008, is that 'CGT' fees are not applicable in this case . (spoke to HMRC in regards).
I am currently in the process of seeking legal advice and also in the process of applying for a mortgage to transfer the property in my name and therefore going for 'Option 1'
Option 2 I would consider only If I am to receive the full proceeds (assuming full responsibility of all costs related) and decide on the sale price.
Yours sincerely
me
* I have sent the response 2 weeks ago and not received a reply since * I have told the estate agents I will allow people to view the property but will not go further until I have a written confirmation from her.
I hope someone can advise me and even point me to someone professional who could assist me.
Thank you in advance
)
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