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Forum Home  →  Discussion  →  Housing costs  →  Thread

Placing a value on a part share

ROBBO
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Welfare rights team - Stockport Advice

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In CH/1815/2016, Judge Jacobs comments :

The legislation volume ‘...is, I think, rather too pessimistic about the possibility of placing a value on a part share when the joint owner does not wish to sell. Since the decisions cited, the Commissioners and subsequently the Judges of the Upper Tribunal have, through their experience of cases, become aware of markets that exist for investors in such shares. The commentary also overlooks the decision of the Court of Appeal in Wilkinson v Chief Adjudication Officer, reported as R(IS) 1/01.’ (paragraph 10)

I am dealing with someone who has a third share in an inherited property, which would be worth about £50k or more to the claimant if able to realise it.  In fact, tenants have been given a long term lease by a sibling.

On the one hand, we may be able to argue her value is below the capital limit taking this into account, although this could go either way, of course.

On the other, if she actually wants to sell her share in ‘the markets’ referred to above, or elsewhere - does anyone know where she would start?

Gareth Morgan
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Were you or a colleague at NAWRA in Durham a couple of weeks ago?  There was a very good workshop on valuation of property and it would be worth looking at the notes.  More complex than I’d realised.

Paul_Treloar_AgeUK
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Hopefully, I’ve attached the workshop notes. Haven’‘t got time to offer any opinion here but the main message from Duncan who ran the workshop is that there is hope in challenging decisions despite JM, by looking at issues such as how long it would realistically take to realise the value of any beneficial interest, what that might cost, and so on.

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ROBBO
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That’s really helpful stuff, and many thanks for it.  I’d decided it was just too far to get to Durham, but now I wish I’d made the effort.

Any comments on the second issue about actually selling the share equally gratefully received.  Fingers crossed.

Elliot Kent
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I expect you would have a hard time selling an equity share on its own - unless one of the other siblings would buy the share out. The idea is that you sell the house and realise your share.

If the siblings all agree, the house can be sold (either with a sitting tenant or after securing vacant possession). If the siblings don’t all agree, then your client can apply to court for an order for sale under s14 (as per JM). If your client wanted to obtain an order forcing sale, the starting point would be to go to a solicitor. One of the points Duncan made is that this is likely to be an extremely expensive process.

Paul_Treloar_AgeUK
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Elliot Kent - 15 March 2017 01:27 PM

One of the points Duncan made is that this is likely to be an extremely expensive process.

Yes, as well as potentially a drawn-out process and with no actual guarantee of success, all of which mitigate against the rather hard edges in JM.