Hoping for some guidance please as estate agents have been able to value the house exactly for the purposes of house valuation for form E. marital home bought just over a year ago for £265K. I paid for a very large extension on it which when (or if) finished would be worth £400k. However, the house isn't yet finished so there are no building regs/approval sign off. It would cost about £14k to finish it just to get building regs. £25k to finish it with a chance of getting full asking price. This isn't likely going to be done due to the divorce. This means that the house value will be less; estate agents have said that it would have to be a cash buyer due to lenders not lending without building regs approval and we'd be looking at bargaining with tens of thousands e.g. if marketed at £400k, we might sell for £350k. What do I put on form E as the value of the property? The lesser value of £350k as that's what it is worth now? Aside, would a judge order the work to be finished as part of a financial settlement?
Any pointers most welcome - thank you.
Last edit: 20 Sep 21 by Heatherclarke. Reason: typo able should be unable
The value is what it is worth now.
Attach a cooy of the estate agents report to the form E.
You could put the cost of completing works in the capital needs section.
You can also reference it in Section 4.5 and/or under contribitions if you have paid the bulk of the costs.
Clearly the question of whether the work should be completed is an issue to be resolved. I would suggest this should be noted in the Statement of Issues.
I. E. Should outstanding works on the property (address) be completed in order to make it mortgageable? How should the works (est £14k) be funded and how should any consequent increase in the value of the property be treated?
It may be less of a problem if the property is to be retained.
If you need help with the paperwork, it may be worth looking at our services tab to see what we assistance we can offer.
Very valuable advice and yes certainly something for the negotiating table. Many thanks indeed.
I have just last night signed up for 3 hours of support; this is a life-line for those of us self-representing.