Nationwide

littlelady

Can anyone advise on a Equity share purchase (1698) loan in connection with a nationwide mortgage offer?
In the terms and conditions (no 8) special condition's do apply...as follows
1698-In relation to the loan agreement in favour of (my name) .
-where secured the loan ranks subsequent to the mortgage.

-the loan is for £..........(my amount)of the purchase monies.
-there is no requirement to repay it within 5 years(except where the borrower is in breach of the terms of the loanagreement.
-no interest is charged in addition to any equity share appreciation.

201-conscent to mortgage....my name.

Story goes has follows..
Myself and partner want to buy a house together (equal footings)
I have my half share in cash,he has mortgage offer(nationwide all set ready to go for his half share.
I have been told by the mortgage advisor that I cannot be on the deeds because of my credit file (ccj )
so the next best thing is this Equity share purchase loan.
Have also been told that I should have a trust deed with restrictions set in place to protect my monies.

Have received letter from partners solicitors from the purchase of the property saying I have to sign a consent to waiver in favour of nationwide b/s, it also states i should take legal advise before I sign.

My partner cannot purchase this property without my funding and I cannot be on the deeds.
It all seems very complicated and I am not sure how to proceed .?:(

getmore4less

How bad is you credit?

Equity share purchase (1698) loan

whats one of those?

Looks to me like :

You are lending the money(interest free) to the OH and getting a charge on the property.
You are also allowing him to mortgage the property and that charge takes presidence over yours.

What are the other terms that allow you to call in the loan

Nationwide want you to sign you have no interest in the property should they need to anything also means he can kick you out and you get nothing till he sells or you force a sale.

You can't do that for at least 5 years.

This is not the same as you buying a house 50:50

Exit plans for all senarioes
Deaths
Jobloss
Kids
new partners
etc.

BadgerFace_2

have you used a mortgage advisor?

It sounds to me like it might have been a salesperson from Nationwide who didn't know what to put down on the application form.

That clause relates to a purchase where a % of the property is retained by the builder; Shared Equity. I'm not 100% sure if Nationwide will let you do this with anyone other than the builder and you may have a problems further down the line.

The clauses are there to ensure that any charge you have rates subsequent to Nationwide i.e. they get their money back first should the property not be able to cover both charges. This is risky for you.