A neighbour is blocking our property sale — what can we do?

Times

5 days ago

We are leaseholders of a downstairs maisonette in a building where we also have a share of the freehold. We are selling the property but the joint freeholder, who owns the flat upstairs, is refusing to co-operate. She is making unreasonable and ever-changing demands, such as demanding payment, access to our garden, cancellation of a previous debt and alterations to the lease.
She has refused to sign the TR1 [ownership transfer form] to transfer the freehold share to our buyer, effectively blocking the sale. In the past, she has been abusive towards us and our tenants, resulting in police involvement and an Asbo. She is now refusing to communicate or engage in mediation, leaving us unable to proceed.
We are seeking advice on how to resolve this deadlock. What legal options do we have to enable the sale of our property?DP
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This is an extremely challenging situation and you have my sympathy. There are no easy or perfect answers but I have set out some possible options for you below:
The real challenge for you is that you need simultaneously to resolve two problems: the refusal to sign the TR1 and the difficulty of physically selling the home.
Dealing with the (easier) TR1 issue first, it is possible to make a relatively straightforward application to court under the Trusts of Land and Appointment of Trustees Act 1996. Section 14 enables the court to make an order for sale of the freehold without the co-freeholder's signature on the TR1.
Turning to the issue of actually making the sale, you could issue a claim against your neighbour, seeking an injunction restraining her from causing a nuisance. However, not only would that be expensive and somewhat risky, there is no guarantee it would convince prospective buyers that nuisance issues would not reoccur. And a buyer might be concerned about potential issues when they themselves come to sell the property.
One alternative is to sell the property in an auction. Via that method, you could find a buyer who is willing to overlook potential issues, for example an investor who doesn't intend to occupy the property. You may have to sell for less than you would like but at least you would have resolved the problem.
One other option — subject to your budget, obviously — would be to offer to buy the neighbour's flat. You would then control the whole property. I realise that your neighbour has proven difficult to negotiate with, but at this point nothing should be off the table. I do hope you manage to find a solution.Ed Cracknell, partner, Russell-Cooke, russell-cooke.co.uk
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