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Mortgage on Shared Ownership property
Bargain_Rzl
Posts: 6,254 Forumite
I'm a FTB with currently just over £10k in savings (see my sig) and have discovered that I may have an opportunity to get a shared ownership property in my preferred area and with manageable outgoings. The place I'm looking at would cost me £56k for a 40% share, or £70k for a 50% share, and I'd be intending to offer a 10% deposit which would leave the rest of my savings to cover legal costs, moving, furnishings etc. Is it common for mortgage companies to have "issues" with lending on shared ownership properties? I want to find an IFA with experience in shared ownership, preferably in Central London, and was wondering if anybody might have a recommendation.
Question two is, how does stamp duty work, if the property is worth £140k (i.e. 1% stamp duty band) and the owned share is only worth £70k (i.e. stamp duty exempt)?
TIA
Rzl
Question two is, how does stamp duty work, if the property is worth £140k (i.e. 1% stamp duty band) and the owned share is only worth £70k (i.e. stamp duty exempt)?
TIA
Rzl
Operation Get in Shape
MURPHY'S NO MORE PIES CLUB MEMBER #124
0
Comments
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Yes, I recommend Alexander hALL. They are a I mortage broker. there were about 15 lenders offering products 2 years ago when I bought, maybe more now. Im with Abbey, but theres loads of other ones, they show you what they have got and were excellent with me.:beer: Well aint funny how its the little things in life that mean the most? Not where you live, the car you drive or the price tag on your clothes.
Theres no dollar sign on piece of mind
This Ive come to know...
So if you agree have a drink with me, raise your glasses for a toast :beer:0 -
NO
SO are never SD exempt im afriad
You wil have the choice of paying the SD on your share? Or on the whole property? I chose just on the share as I didnt think Id be staying long enough to buy the place outright.:beer: Well aint funny how its the little things in life that mean the most? Not where you live, the car you drive or the price tag on your clothes.
Theres no dollar sign on piece of mind
This Ive come to know...
So if you agree have a drink with me, raise your glasses for a toast :beer:0 -
halifax offer mortgages for shared ownership.
as for the stamp duty, we paid on our £77500 50% share not on the whole property.
Although some of my neighbors who live in our development havnt paid it at all. Not sure why, it seems to be on the advice of their solicitors0 -
Thanks all ... Looks like it might be a fair split if only my share was liable for stamp duty ... Anyway, wish me luck - on Lynzpower's suggestion (among other people's offline!) I have started talking to Alexander Hall and have been recommended a Nationwide mortgage.Operation Get in Shape
MURPHY'S NO MORE PIES CLUB MEMBER #1240
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Have you been down to see them? thats swift work :T:beer: Well aint funny how its the little things in life that mean the most? Not where you live, the car you drive or the price tag on your clothes.
Theres no dollar sign on piece of mind
This Ive come to know...
So if you agree have a drink with me, raise your glasses for a toast :beer:0 -
Yes - been to see AH yesterday! Got an approval in principle from the Nationwide, my advisor at AH said it wasn't worth bothering with the AiP as the mortgage amount is not a big salary multiple (2.4x), but I insisted - I suspect there may be quite a lot of competition for these flats and should one of them be suitable, I want to make damn sure I'm in the strongest possible position. Wish me luck for this afternoon at 5:30 ...Operation Get in Shape
MURPHY'S NO MORE PIES CLUB MEMBER #1240
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