Shared Ownership - Mortgage Lenders

bb69

Yep try Halifax

wigwam

I have shared ownership and a mortgage with Kent Reliance.
To be honest I wouldn't do the shared ownership again, in 2-3 years I'll look at building a deposit to move on.
My income has gone up a fair bit since I purchased three years ago though, and it was my only option at the time.

SpiderWestCider

DesertFlyer - Its 5% on our share, so in our case mortgage for 70%, deposit of 5% and developer holds 2nd Charge of 25% which we pay back interest free after 10 years. The rate is 4.75 for a two year fixed.:)

Son_of_a_beesting

brit1234 wrote: »

they are harder to sell

Sorry not wishing to sound rude but could you quantify that statement? I am not saying I don't believe but is this based on facts and figures,
experience or heresay/personal views?

I don't have a SO property but have been investigating all possibilities.

Thanks

poppy10_2

Son_of_a_beesting wrote: »

Sorry not wishing to sound rude but could you quantify that statement? I am not saying I don't believe but is this based on facts and figures,
experience or heresay/personal views?

Have a look:

http://property.timesonline.co.uk/tol/life_and_style/property/buying_and_selling/article6979254.ece

Such schemes I]shared ownership[/I can mean that selling your home — for a job, relationship, or more space for a family — can be complicated. Your lease should state any restrictions set by the housing association.


Affordable-housing landlords typically require a “nomination period”, during which they will try to find a buyer themselves to keep the property within the affordable housing sector. This period should start when you sign official forms expressing your desire to sell, but there have been cases when it has not applied until the property goes up on the RSL (Registered Social Landlord) website, meaning a longer waiting period for the owner.


The process can be costly: the buyer must typically pay the RSL an agent’s fee (usually 1% of the percentage they own), as well as paying a valuer, a solicitor and for the home information pack. Richard Stone, of the affordable housing mortgage broker SPF Sherwin, warns that valuers employed by such landlords tend to be conservative: “This can work in your favour if you are planning to buy the remaining shares. But if the RSL is selling the property you may not fetch as high a price as on the open market.”


If you can afford it, Stone says, it might be more lucrative to buy the property outright and sell it yourself. Each time you staircase you have to pay for a solicitor again, and stamp duty — but it may be worth it to boost your profit.

:eek:





And here's an example from the website of a SO provider, Hexagon:
http://www.hexagon.org.uk/content/selling-your-shared-ownership-home-.asp

Selling your shared ownership home

Your first step should always be to tell Hexagon that you plan to move. You have two choices when selling. You can sell the part of home that you own to someone nominated by Hexagon, or you can buy the remaining share, and then sell the property outright.

The rules on selling are set out in the Shared Ownership Lease. Leases can vary, but normally they give a ‘nomination period’ to enable us to find a new buyer for your share of the home. If we cannot find you a buyer within this time, you can then sell your home on the open market.

If you own your home outright you can sell it on the open market. However, Hexagon has the right to buy the property back at the current market value at anytime that it comes back onto the market in the 21 years after it has gone into 100% ownership. This is in order to keep a good stock of affordable housing available for local people.

You cannot sell your home if you are behind with rent or service charge payments

Once you have confirmed in writing that you want to sell, Hexagon will start looking for a buyer for you. We will interview anyone interested in buying to check that your home is suitable for them, and that they can afford to buy.

If they are suitable buyers, and you wish to go ahead, you must first settle our solicitor’s costs and administration fee. If we do not find a buyer for you within the nomination time of eight weeks, you are free to find your own buyer on the open market.

In the event that you are just selling your share, the new buyers will be asked to complete an application form and attend an interview; this is to ensure that they are entitled to buy, just like you did.

When you sell your home your costs include:

• The valuation fee
• Any mortgage payments due to your bank or building society
• Your solicitor’s fee
• Hexagon’s solicitor’s fee, for transferring the lease to a new owner.
• Hexagon’s fee for finding your buyer and arranging the sale.

Have fun :beer:

too_much_debt

Hi

I had a Shared Ownership property in 1996 and had my mortgage with Bradford & Bingley.

peachespeaches

Gwyddbwyll wrote: »

Hello all,

I've found a great place and made an offer I think will be accepted. But I'm now finding that the mortgage lenders that I talked to dont do shared ownership (RBS, One Account etc)

Does anyone know who does do shared ownership! It's frustrating.. and I'm really keen to get this place. I can even afford to buy the whole 100% a few months later which is what the agent said would be the plan. So I'm mainly looking for one with very low arrangement / exit fees. The Co-op Bank and First Direct offer that but I dont know yet if they'll do shared ownership.

Anyone have any knowledge of lenders willing to do this?

Cheers if you can help
Stephen

Be very wary of the co-op bank. They took ages and messed us about no end last year, agreeing in priniciple, taking ages, then saying it was going through and getting us to do a valuation, and then rejecting us, plus a total of 6 searches on our file.

We found the Mansfield very helpful via MB simply mortgages. Ours is shared ownership and it went through without any trouble at all. They did ask for a lot of paperwork, but we had it all to hand from the co-op application so it wasnt really a problem.

leguape

Mine's currently with Woolwich by Barclays. Although I'm coming to the end of my fixed term so I'm also looking at remortgaging options.

SPF Sherwins helped find me a mortgage when I was buying my SO place. I think Sherwins specialised in shared ownership mortgages before SPF bought them. They were really helpful and found me an affordable deal back in 2007.

samdistro

Thought i'd throw in my ten pence here;
My mortgage was through Natwest, and can honestly say that it was completely minimal hassle - really good service, and a good rate (about 3.4%).

I know the talk here is about SO and mortgages, but thought i would post this link to a site which i found which sells shared ownership contracts; sharingcontracts.com
Well the forum wont let me post an actual link, but it seems its more for things potentially going awry between the people involved in the shared ownership of an asset.

forgotmylogin

The Leeds Building Society are doing shared ownership with a 10 per cent deposit.