Mortgage advice

Edwyn123

Hi,

My girlfriend and I are looking into part ownership schemes and have found a place that we think is ideal.

For a 25% share we need to get a loan of £57,500, we are both in full time employment with a combined salary of about £45k, in order to secure a loan like this, am I going to need a 10% deposit? What kind of loan should I be looking at? Fixed rate or one at the base rate?

I was also wondering if £3,000 legal fees is standard for entering into a part ownership scheme? Bear in mind this one is in central london so it may not be like most others.

Thanks in advance for your help

Ed

dimbo61

So with a £57,500 mortgage you will own 25% of a property which you cant sell to anyone else !!!
£3k in fees sounds alot
How much have you saved for the deposit ?
Would you not be better off renting in case you have to move to other parts of the country !
London is very expensive and £45k joint income gets you very little in the capital.
What is the rent for the other 75% and can this go up each year ?
Have you got management fees to maintain the roof/grounds etc.
Get advice from a good whole of market broker and think very carefully about buying only 25% of something.
GOOD LUCK

Edwyn123

It sounds like you are very cynical which doesn't sound very helpful. We would own 25% of the property yes. It is in a very sought after location, in the heart of London so I doubt we will have any problems selling when that time comes. I don't expect it to come soon as we have both lived in london all our lives and hold down steady jobs here with good career progression.

No of course I would not be better off renting as that is just wasting money down the drain rather than acquiring property. The point is this will be my first step onto the property ladder.

The rent for the other 75% is 3% of what you don't own each year. There are no management fees. We would be responsible for upkeep of the house. It is a new build and is finished to a high degree (we have visited already)

Thanks for taking the time to reply. Anyone else have any thoughts on the subject?

figgles

What if the owner of the 75% wants to sell?

itsakidsworld

Hi Edwyn123,

don't react to the above comment as cynical as it appears all the poster is trying to do is give you logical advice? If you can answer these in your own mind which is all that matters, then progress forward with further information. They may be comments you have not thought about, however if you already have these areas covered, then better to know twice than not at all?

The property world is a tough world and the best of luck in achieving your dreams however they come about for you. View all comments as positive in your search and you will soon find success.

Regarding your question on "which rate to choose" the general trend appears to be fixed at anything under 5% for as long as you can achieve, given future rate expectations and the fact base rates are clinging to an all time low.

A good independent broker in your area would be my next move who will be able to tell you what are good/expensive fees.

Good luck.