What circumstances can you force a house sale?

As a joint owner of a property, there may come a time when you want to sell. But if your co-owners are reluctant to sell, it can make the process a lot more difficult.

This can be frustrating if there are time pressures involved and want to sell the property fast. But there are circumstances under which you can force a house sale.

What is a forced house sale?

Forcing a house sale means bringing about a house sale without voluntary action from the co-owners of the property.

You can't legally force the sale of a co-owned property without going through the courts to compel the co-owner.

Order for Sale

The only way to do this is through an Order for Sale. This is a court judgement that orders the sale of a property. A UK court must grant an Order for Sale if you want to sell your property without the permission of the other party.

This action is often taken during divorce proceedings (or with cohabiting couples) if the parties involved can't agree on whether to sell their marital home or not.

You may also need to apply for an Order for Sale if you want to get rid of a secured property without the mortgage lender's consent.

Jointly owned property

You can't always apply for an Order for Sale; it depends on how the property is co-owned. There are two main ways to co-own a property:

1. Tenancy in common: these types of owners own a distinct share of the property and can apply for an order for sale without amending the tenancy agreement.
2. Joint tenancy: joint owners (who co-own the entire property rather than separate shares) have to sever the joint tenancy before they can apply for an order for sale. One joint owner won't be able to sell the property without the other joint tenants' consent if the tenancy isn't severed beforehand.

To find out more about tenants in common, take a look at one of our past blogs.

In divorce proceedings

Going through a divorce can be a stressful and tiring process, particularly if you're struggling to decide how to split the assets. Sometimes, the separating couple may decide it's best to sell the family home so they can split the proceeds.

If you're considering a forced house sale in a divorce, you have to make sure it's the right decision for all tenants. Ask yourself the following questions:

1. What is the market value of the home?
2. How much are you owed on the mortgage?
3. How will the proceeds be split between you and the other owners?
4. Will one party be unfairly affected if the sale goes ahead?
5. Do you have any other debts against the property? If so, can you afford to pay them?

If your ex-partner refuses to cooperate with a house sale, it might be because they can't afford the mortgage payments on their own. You might also struggle to agree on a sale price or how the proceeds will be split.

It can take considerable time for you and your partner to reach an agreement, and this can be very frustrating if there's time pressure. The market constantly fluctuates and your house may only be valued at a certain price for a short period. If you're forcing a sale to split the proceeds, you want to sell for as high a price as possible.

You can't force a sale if your ex-spouse doesn't want to; it has to be done through the court. A forced house sale can only be approved if the court finds it to be in the best interest of all parties involved.

You can find out more about buying a house as a couple in one of our previous articles.

Paying off creditors

If you owe money to a creditor, they might place a charging order on your property, after which they'll apply to the court to sell your house. They must send you a notice of their application first, but if the court grants approval, they'll be able to issue an order for sale.

Proceeds from that sale will be used to pay off your debt to the creditor, and any remaining revenue will be given to you.

Inheriting a willed property

Sometimes, a property inherited through a will can be sold to settle debts or fairly distribute inherited assets. Typically, this only happens if there are no other ways to fairly divide the estate.

If you've inherited a willed property, you might want to force a sale for a number of reasons, such as:

• You're an executor in the Will and need to sell the property to pay debts or divide assets.
• The beneficiaries of the Will can't come to an agreement on what to do with the property.
• It would be more financially viable to sell the property.

As with any forced sale, you'll need to apply for an order for sale. The courts will often only approve a sale if it's the only option of fairly dividing the estate.

Investment property

An investment property can be risky and might not always pay off. If your investment property isn't working out financially, or you have personal circumstances that affect your other assets, you might consider forcing a sale to get out of the investment.

Life estates

If maintaining your life estate is too financially demanding, or if there's damage you can't address, you might be able to force a house sale.

Tenants in common

If you can't agree with your co-tenants about whether or not to sell the property, you can apply for a house sale through court action.

Liens

Liens mean another party has a claim on the property, such as repairs, unpaid taxes, or unpaid mortgage payments. You may be able to force a house sale if there are unaddressed liens on the property.

Tenant's right of first refusal

If your landlord wants to sell the property you're renting, you may be able to force the sale. If your lease has a clause containing a 'tenant's right of first refusal', you have the opportunity as a tenant to purchase the home before it's listed.

Refusal of sale

It's important to be aware that not every Order for Sale will be granted by the court. The courts can only approve an Order for Sale if it meets the requirements outlined in the Trusts of Land and Appointment of Trustees Act 1996.

Your sale may be refused for a number of reasons, such as:

• One partner or co-owner will probably be unfairly impacted by a forced house sale.
• There are dependents (such as children) whose quality of life would suffer if the order for sale was granted. For example, they might be in full time education and have to move schools if there was a forced sale.
• If the property was bought under the agreement that joint owners can't sell without universal consent of the co-owners.
• There is negative equity in the property.

Regulated right to occupy the property

If the court rejects your application, they might regulate the occupation rights of each person involved instead.

As part of regulating the occupation rights, the court may enforce, control, revise or restrict a party's right to occupy the property. Usually this approach is taken to ensure a fairer outcome for everyone involved.

Buying out a joint owner

If you have a mortgage on a jointly owned property, one party can buy the other out by refinancing the mortgage with their existing lender. You could do this by remortgaging or swapping your current mortgage to a more suitable one that better meets your needs.

How much does it cost?

Now you have a better idea of the process, you might be wondering how much it costs to force a house sale in the UK. It's always important to research the entire process thoroughly so you're not surprised by any hidden costs like legal fees or unexpected repairs.

On average, a forced house sale could cost between £2000 and £5000. However, exceptional cases may vary in cost, which is why it's important to research your county court so you have a clear idea of all the fees involved.

Summary: The right choice for everyone

Deciding to force a house sale needs to be carefully considered, particularly because the court won't approve an order for sale if it isn't the right decision for all parties. A forced sale needs to be fair for everyone involved, no matter the reason for selling.

Whether you're the selling party or your co-tenants want to sell, always remember to do your legal research when it comes to selling your property. That way, the process can be as smooth and fast as possible.

If you are ready to sell your home, you can compare estate agents using our estate agent comparison tool. Whether you're looking for a fast sale, the maximum return on your investment or the most experienced agent in your area, our comparison tool can help you find the best agent to meet your needs.