How is it 'more difficult' to sell a shared ownership property?

sturgeon

I own 50% of my property. I've read on various threads here it is 'more difficult' to sell as it's shared ownership. How is this? As far as I know, when I sell it I pay back the % I don't own and would move my mortgage elsewhere or pay it off and get a new mortgage for my new property.

So I don't get how it's different selling a shared ownership property compared to a normal one. Does the buyer know/need to know I bought under a shared ownership scheme? I don't need to sell back to another FTB as I'm free to sell as I like.

tek-monkey

Check your Ts & Cs, do they have any say in who you sell to? Some places apparently have restrictions, also some seem to stay shared ownership (i.e. you can only sell your share, to someone else who wants half a house). If however you really are free to just sell up, I can't see any difference whatsoever.

ILW

How are you going to pay of the 50% you do not own?

tek-monkey

With the sale price of the property?

not_tonight_josephine_2

I suppose it may also be partly because shared ownership is something which quite a lot of people don't like the idea of (each to their own, but I personally wouldn't buy a SO property) so your resale market is somewhat limited?

Also, do all banks lend freely on shared ownership properties? I don't know the answer but if there was only a limited range of mortgages on offer for SO then your potential market would be further reduced.

tek-monkey

Surely that is only if the sale is the SO part of the house? The OP says he can just sell and hand them back their %, meaning the new owners own it in full?

ILW

tek-monkey wrote: »

With the sale price of the property?

This would only be possible if th OP was mortgage free on their 50% (I think)

DVardysShadow

sturgeon wrote: »

I own 50% of my property. I've read on various threads here it is 'more difficult' to sell as it's shared ownership. How is this? As far as I know, when I sell it I pay back the % I don't own and would move my mortgage elsewhere or pay it off and get a new mortgage for my new property.

If you pay back the %age you don't own, the shared owner will have a say in whether the deal is good enough. This could be a problem.

So I don't get how it's different selling a shared ownership property compared to a normal one. Does the buyer know/need to know I bought under a shared ownership scheme? I don't need to sell back to another FTB as I'm free to sell as I like.

If you can square it with your co-owner, then the buyer does not need to know, although of course, the LandReg may tell a different story.

tek-monkey

ILW wrote: »

This would only be possible if th OP was mortgage free on their 50% (I think)

Doesn't that depend on original mortgage price vs current value? Also are you assuming a 100% mortgage? If you buy a 100k house you need a 50k mortgage. Assumingno price rises and no equity, you sell for 100k and pay the 50k off the mortgage, leaving 50k for the SO people. Any equity you have, and rises in current house value vs purchase price, are profit to put down on the next house.

puddy

but he cant sell what he doesnt own, he wouldnt get 100k for the house because he only owns 50% of it, so he sells his bit for 50% and the new owner becomes part buy part rent, OR he and the housing association agree that the property can be sold to Mr X and the money is split 50/50, either way the new buyer has to know and there has to be no restrictions in place for the seller to have as 'easy' a time as a standard seller

tek-monkey

Depends how he purchased surely? I have a friend using a SO scheme where he could buy any property he liked, and just repays them their share when he sells. I assumed the OP was the same, as he said he was free to sell as he likes? The property just reverts to being a 'normal' property, rather than SO.

Unless he's on a SE scheme I suppose, and told me the wrong name? I'm going SE and thats how mine works.