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  • FIRST POST
    • Dawndrd
    • By Dawndrd 13th Jun 17, 10:21 AM
    • 1Posts
    • 0Thanks
    Dawndrd
    Shared ownership - can I pay cash deposit and get a mortgage at a later date?
    • #1
    • 13th Jun 17, 10:21 AM
    Shared ownership - can I pay cash deposit and get a mortgage at a later date? 13th Jun 17 at 10:21 AM
    Hi,
    Well I hope you lovely folks can give me some advice as I seem to have stumbled into a grey area here.
    I currently rent a house through a private landlord, he is willing to sell me the property however I only have £90,000 of the £140,000 needed, as yet I cannot get a mortgage for the remainder due to my bad credit rating.
    So in short could I part buy the house now (I'm too worried about wasting the money If it's just sat in an account somewhere) and get a mortgage in a year or so for the rest once my credit rating improves enough to qualify?
    Hope this makes some form of sense?!?
    Thanks in advance
Page 1
    • Pixie5740
    • By Pixie5740 13th Jun 17, 10:37 AM
    • 10,393 Posts
    • 14,234 Thanks
    Pixie5740
    • #2
    • 13th Jun 17, 10:37 AM
    • #2
    • 13th Jun 17, 10:37 AM
    Is the landlord willing to sell you a share of the property rather than the whole thing? And have you actually been to see an independent mortgage broker to confirm that you can't get a mortgage right now?
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • aneary
    • By aneary 13th Jun 17, 10:38 AM
    • 162 Posts
    • 87 Thanks
    aneary
    • #3
    • 13th Jun 17, 10:38 AM
    • #3
    • 13th Jun 17, 10:38 AM
    Will your landlord wait a year or so for the rest of the money.

    In the mean time who will own the property you, the landlord, both?

    You will need to pay two lots of solicitors fees one for the current arrangement one for the next part buy.
    • saajan_12
    • By saajan_12 13th Jun 17, 11:17 AM
    • 461 Posts
    • 288 Thanks
    saajan_12
    • #4
    • 13th Jun 17, 11:17 AM
    • #4
    • 13th Jun 17, 11:17 AM
    Hi,
    Well I hope you lovely folks can give me some advice as I seem to have stumbled into a grey area here.
    I currently rent a house through a private landlord, he is willing to sell me the property however I only have £90,000 of the £140,000 needed, as yet I cannot get a mortgage for the remainder due to my bad credit rating.
    So in short could I part buy the house now (I'm too worried about wasting the money If it's just sat in an account somewhere) and get a mortgage in a year or so for the rest once my credit rating improves enough to qualify?
    Hope this makes some form of sense?!?
    Thanks in advance
    Originally posted by Dawndrd
    Will the LL be willing to sell in parts? In the interim do you both own part of the property?
    * Are they willing to only receive part of the money now, as they’d be unable to re invest the money / pay off full mortgage
    * They would be a part owner, so pay extra SDLT if they buy elsewhere in the meantime
    * Depending on how the ownership is registered, they may still be your LL with all the deposit/gas safety etc responsibiliities, but not receive full rent
    * As part owners, what if you disagree on repairs/renovation costs? Who pays when the roof falls in?
    * What if one party needs to sell their share? Can’t liquidate a part house
    * What if you can’t raise mortgage? Do they have to stay part owner indefinitely?

    Best would be to save the money in a separate account and buy all of the property when you can. Why do you think you’ll waste the money?
    -> IF you’re worried about low interest rates, the return on property over just 1year won’t be much better once you take into account additional solicitor costs etc.
    -> IF you’re worried you’ll fritter it, you could use a fixed term account so you can’t touch it or an investment vehicle for 1 month.
    • macman
    • By macman 13th Jun 17, 11:23 AM
    • 40,880 Posts
    • 16,687 Thanks
    macman
    • #5
    • 13th Jun 17, 11:23 AM
    • #5
    • 13th Jun 17, 11:23 AM
    But if in a year's time you are not in a position to buy the rest, then your LL will have to evict you before he can sell with vacant possession. I cant see him putting himself in that position unless he has total trust in you. And in the meantime he will justifiably want to charge you rent on the portion that you don't own.
    I can see no possible incentive for him to do this.
    No free lunch, and no free laptop
    • Guest101
    • By Guest101 13th Jun 17, 11:26 AM
    • 13,955 Posts
    • 13,471 Thanks
    Guest101
    • #6
    • 13th Jun 17, 11:26 AM
    • #6
    • 13th Jun 17, 11:26 AM
    There's the added factor that he's selling for a reason, your £90,000 may not even cover the mortgage....
    • pinkshoes
    • By pinkshoes 13th Jun 17, 12:57 PM
    • 14,968 Posts
    • 20,317 Thanks
    pinkshoes
    • #7
    • 13th Jun 17, 12:57 PM
    • #7
    • 13th Jun 17, 12:57 PM
    £90k cash and a poor credit rating???

    Have you actually tried to get a mortgage through a broker? With such a large deposit, you should be able to get someone to lend to you...
    Should've = Should HAVE (not 'of')
    Would've = Would HAVE (not 'of')

    No, I am not perfect, but yes I do judge people on their use of basic English language. If you didn't know the above, then learn it! (If English is your second language, then you are forgiven!)
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