Is this possible !

charmedy2k

Hi all,

I'm just wondering if you guys can give me some advice on whether I could sell a property on a part ownership basis privately.
I have a 2 bedroom new build flat which my partner and I bought in Feb 2005 we now have a baby on the way along with a 7yr old daughter and we definitely need more space now. Our flat has been on the market since August and we've not had any veiwings at all so we recently dropped the price from £254000 to £249950 but still nothing and we need to move by March next year.
So last night I had a lightbulb moment and thought why couldn't we sell 75% of our flat which would pay off our mortgage in full allowing us to get another mortgage and buy another property without the hassle of having 2 mortgages or having to rent our flat out and we would still own 25% of the flat which would mean that we'd still be entitled to any increase in price on that 25%. It would rule out the need for the buyer to have a deposit and mean that we could market it at a lower price.
Now I know that this is the case for councils and Housing associations but can I as a private seller offer this option on the open market?
Any advice is welcome and also what about stamp duty etc etc.?

Thanks

abaxas

Sorry for negativity.

But if you flat worth that amount? If you want to sell you will have to be realistic.

The value is set by the market not you.

Guy_Montag

As a prospective buyer, I wouldn't touch that with a bargepole. That's not to say there's not some numpty out there that will though.

Would you charge them 25% of going rate of rent on top of their mortgage?

Out of interest have you checked the LR to see what the resale value of other flats in the block have been?

BobProperty

I see no legal or technical reason why not, but I do see three practical problems:
1. No one will lend on it
2. Very few people will be interested in buying it, because they will have not much of a comeback on you. Most, if not all, SO is off housing associations which are regulated and, let's face it, relatively reputable bodies (I'm not saying efficient or effective here, just that they aren't going to run off to Latin America next week are they?) You as an individual have a lot more to "prove" in the way of reliability and commitment to keep your side of the bargain.
3. You, I think, would have to lease it to the buyer, so you will retain some obligations, so back to 2. and would it really be worth it?

Doozergirl

Would be far too complicated for it to work I think. Housing Associations must have very special leases and insurances in place that mean a lender can't come after them for the the other party's debt, IYSWIM.

You're better just having a good, objective look at what is available out there and setting your asking price to match.

£254 is a bit of a silly price to market at. Whose idea was that? If it was your EA, I'd question their motives and wonder whether they purposely overvalued to get your business.

charmedy2k

Well from all the replies I guess this wouldn't be a good idea then! LOL

We purchased the flat for £245000 in 2005 it was a luxury penthouse apartment hence the price tag. so I wouldn't say that it has been overvalued as we live in a part of london where the house prices keep rising and rising.

I had it valued by 4 estate agents 1st one said £270000 second said £260000 and the third said £190000 ? (I don't think so!) and the last said £259950 now the problem with all of those was the stamp duty meaning because we were going above the 2% threshold none of their valuations were truly feesable. We decided to market it at £254000 with a veiw to getting an offer of £245000 and up.
(They have Just finished building a bigger block of flats (8 Floors ours are only 3 floors) just up the road and the penthouses they have which are of comparable size are going for £283000)

Since we have had no veiwings they suggested that we lower the price by 5000 which we have but still no interest. I desparately want to have something sorted by the end of January as I want everything to be in place before the baby arrives.
So if you think this shared ownership business is a no go, then what else can we do?
I don't really want to lower the price much more as we need to be able to have a deposit to buy a house and I definitely don't want to rent the flat out and buy another house because I don't want the responsibility of 2 mortgages just in case I don't go back to work after the baby is born.
But what other options are there?

Please help

BobProperty

charmedy2k wrote:

Well from all the replies I guess this wouldn't be a good idea then! LOL

We purchased the flat for £245000 in 2005 it was a luxury penthouse apartment hence the price tag. so I wouldn't say that it has been overvalued as we live in a part of london where the house prices keep rising and rising.

I had it valued by 4 estate agents 1st one said £270000 second said £260000 and the third said £190000 ? (I don't think so!) and the last said £259950 now the problem with all of those was the stamp duty meaning because we were going above the 2% threshold none of their valuations were truly feesable. We decided to market it at £254000 with a veiw to getting an offer of £245000 and up. ......But what other options are there?..............

Going back to your original idea, it wouldn't be likely that your lease allowed it anyway ( assuming you are leasehold).
Now, you aren't going to like me but, "what other options are there?" - stay where you are. You are about to spend £x,000 just to move and presumably take on a bigger mortgage and at the same time you are about to be out of work for several months. I think that is rather a risky strategy. I really would consider putting the whole moving idea on hold until after the baby has arrived.
As for the bits I've highlighted, I leave you and others to think about.

Doozergirl

New builds are sold with a big price premium, over the resale market, plus they lose that magic sparkle when they become second hand. It's a bit like the depreiation on a second hand car. If you are surrounded by new build you will have your work cut out to sell as showhomes are incredibly seductive.

Your options are to stay put or drop price and move somewhere cheaper.
My priorities changed when I had a baby and I didn't want to be in London at all, tbh.

Would you be prepared to tell us where you live or even post up a link to your flat on the internet? Maybe we can advise on the EA photos and details and see what the market is like near to you?

lynzpower

I agree with doozergirl.

Not to boast, but weve been on the market less than a week & have had loads of interest, viewings and 2 offers one of which Ive accepted. ( the other on the back burner in case buyer one collapses)

the photos I have to say are superb, and the EAs are great. Is it a problem with either of those factors?

if you post up your place, im sure we'll all be happy to have a look over and see if theres anything glaring that looks like its a problem

devils_advocate

Have a look on nethouseprices and see what flats have actually sold for, especially the new, new builds. Price yours realistically in the light of this. Don't forget that flats are like second hand cars, they will lose value cos someone's owned it before.

Remember that EA valustions are not a reflection of the value of your flat, they're just a tool to get you to sell your flat through them.

lynzpower

great advice tustastic

Are you smokers? We are, and as soon as we started putting the 1st coat of paint on, its been us smoking outside

NIce oil burner on the go with oil from bodyshop 2 quid

constant febrezing

Hoover every day

My home looks like a show home ( dont! touch that mirror!! LOL)

Its stressful to live like this, and it has taken a HELL of a lot of work and cleaning to get it to this, BUT it has warranted me 2 offers of asking price & one slightly under asking price in 6 days.

If you dont want to post the link up feel free to PM me. I never posted up my place on here as I didnt want all the nosies from here bumping up my rightmove viewcount! Ill show you mine if you show me yours