Shared ownership remortgage pitfalls

allybally_3

I am presently going through the remortgage process and despite finding a lender (Halifax) who is prepared to lend upto 75% of the value of the share without the Mortgagee Protection Clause, and receiving the mortgage offer, the council who own my share won't agree to any of the lenders terms
In effect it looks like I will lose my mortgage offer due to my leaseholders unreasonble stance -
a - my lease not having an MPC
b - my leaseholder not being prepared to sign a section 442 (I have no idea what this is)
c - my leaseholder not being prepared to sign an undertaking that they would notify Halifax in the event of a repossession

2 questions
1 - are there any lenders who would be prepared to consider me with all the draconian clauses in my lease
2 - is there any way I am able to get the terms of my lease changed. My leaseholder is a council, not HA

Any help gratefully received

Ta

poppy10_2

The section 442 and the Mortgagee Protection Clause mean that the council would be liable to Halifax for any shortfall if you were to default on the mortgage. It's not surprising that they don't want to agree to this. They are being perfectly reasonable in protecting taxpayers money, not being draconian.

Virtually all lenders now insist on an MPC for shared ownership properties, so it looks like you are screwed.

Shared ownership is a scam.

devon_guy

poppy10 wrote: »

.

Shared ownership is a scam.

I wish people would quantify these ludicrous off hand statements. That is no help to the OP without an explanation. For what it's worth in my opinion SO is NOT a scam but I will admit it isn't suitable for everyones circumstances. However buying a property whether SO or not is a huge undertaking for anyone and should be well researched anyway.

creditcontroller

Shared ownership is a scam.[/QUOTE]

Shared Ownership enables some people to get on the housing ladder, who due to circumstances, may not be able to otherwise.

allybally_3

I didnt ask for anyone's opinion, merely some advice about what I can do next.
Not everyone can afford houses these days and therefore shared ownership is at the very least a start. I would strongly advise anyone to scour the terms of their lease though

I refer to my original qusetion...can anyone offer me any advice, not opinion

thank everso

jgallcash

OP - have you sought some advice from a financial advisor?

If not i would certainly do that in the first instance. Although advisors may not be able to get the great deals they once could for normal home owners they may be worth their weight in Gold when it comes to shared ownership, particularly if you can find an advisor who deals with a lot of SO schemes. They would know more about those lenders that are suitable for SO and the likely pitfalls.

I am myself a home owner through shared ownership. I have to say that I have so far have been one of the lucky ones who got a tracker mortgage (Woolwich) and have saved some money over the last 12 months - I am intersted however to see how you progress with remortgaging your SO property as I may be looking to remortgage next year.

Good luck

geoffky

http://www.insidehousing.co.uk/story.aspx?storycode=6501770

shared ownership is for the financially illiterate.