sale to preffered partner
Hello
We have an enforced sale property, not yet quite at that stage, but the property has two owners, one a gentleman who has been deemed as lacking capacity and awaiting power of auttorney to go through. The other owner (ex partner) has expressed an interest in purchasing the gentlemans half.
Is this possible if they pay a fair price from three valuations?
any advice appreciated.
thank you
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Best Price
Hi Luke
The first thing I would say is that if the Power of Attorney is just about there, it would be better for them to do a voluntary sale between themselves.
This avoids any suggestion that the LA did not act in good faith or had prejudiced a vulnerable client etc etc
If the LA does an enforced sale, then they are under a duty to ensure that they get best price.
This can be done by various means but generally the most appropriate way is to put the property into a well advertised auction.
This would be accepted as best price, but put a sensible reserve on the property
However, there are cases when the LA may want to sell the property to a preferred partner, but you run the risk of being challenged that you sold the property at below best price.
Therefore, what most LAs do to protect themselves is to get a number of valuations.
I tend to get a local RICS surveyor (Red Book) and District Valuer.
They attend the property at the same time and thenprovide a valuation.
Usually, the values will come in at a similar level, we then pay the top valuation of the two.
Therefore, If the LA is challenged the LA has two independent valuations and should be well placed to defend their position.
Regards
Andrew Lavender