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Rent To Mortgage sale
green22_2
Posts: 2 Newbie
Hi
I am looking for some info on selling my new wife's ex-local authority house which she purchased under the "rent to mortgage" scheme before I met her, around the year 2000. This is under the 1993? (pre 2004) scheme where your only payment is your mortgage (and you don't pay a proportion of rent unlike the current shared ownership schemes)
We are considering selling/or renting it in the next year or so so we can downsize.
From what I can remember my wife owns/mortgaged 50% of the value of the house and the LA has a stake in the value of the remainder.
There seems little info on the web for this as so few people used this scheme (my wife had no option at the time as she couldn't raise a full mortgage.
So,
1. Has anyone here sold their "rent to mortgage" property what additional complexities are entailed in disposing of the LA's share or is this done at sale? - I presume we will have to have the LA's valuer in before exchange of contracts
2. I seem to remember that upon disposal we are also entitled to a further 15%? on the LA stake- can anyone verify this? so we can work out what we will have to spend on our smaller property.
3. Is the scheme tied solely to my wife? what happens should she die is it transferable to myself or would the remaining LA stake have to be purchased from them at that point to remain in the house?
Our other option is to rent it out if we decide to move but we are also looking to minimise any CGT liability so would rather sell.
sorry for the long post any help pointers much appreciated.
I am looking for some info on selling my new wife's ex-local authority house which she purchased under the "rent to mortgage" scheme before I met her, around the year 2000. This is under the 1993? (pre 2004) scheme where your only payment is your mortgage (and you don't pay a proportion of rent unlike the current shared ownership schemes)
We are considering selling/or renting it in the next year or so so we can downsize.
From what I can remember my wife owns/mortgaged 50% of the value of the house and the LA has a stake in the value of the remainder.
There seems little info on the web for this as so few people used this scheme (my wife had no option at the time as she couldn't raise a full mortgage.
So,
1. Has anyone here sold their "rent to mortgage" property what additional complexities are entailed in disposing of the LA's share or is this done at sale? - I presume we will have to have the LA's valuer in before exchange of contracts
2. I seem to remember that upon disposal we are also entitled to a further 15%? on the LA stake- can anyone verify this? so we can work out what we will have to spend on our smaller property.
3. Is the scheme tied solely to my wife? what happens should she die is it transferable to myself or would the remaining LA stake have to be purchased from them at that point to remain in the house?
Our other option is to rent it out if we decide to move but we are also looking to minimise any CGT liability so would rather sell.
sorry for the long post any help pointers much appreciated.
0
Comments
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What paperwork does she have?0
-
If no paperwork, did she use a solicitor? Ask them for the options.
Or speak to the LA - they must know.0 -
Can't find any paperwork this was 11 years ago, so our next port of call was going to be the solicitor & LA anyway.
Am really looking for anyone who has had actual experience with selling their house after buying under the old "rent to mortgage" scheme to see if they had any tips, before putting wheels into motion.0
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