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Housing Association + Mortgage is it a Sub-Sale??
Blaze12
Posts: 1 Newbie
Hello all,
It's a tricky situation but I'll try to explain it as best as I can. My parents currently own a 64% share in a housing association house which they are having to sell due to divorce agreement.
As both parents are upset that to see the family home go, I thought myself and my partner would see if we could purchase it (the housing association had advertised it privately to no avail so was about to hit the open market). We applied for a mortgage and were accepted on salary and credit and all was hunky dory. I had always clearly laid out where the deposit/monies were coming from. My father has agreed to gift his share towards our deposit as he is now well established and would rather help us be able to buy our house.
Then a few weeks ago my solicitor contacted me because he had tried to confirm the proceedings on completion with the mortgage company and they had come back with a pretty serious question.
Here it is: on completion the housing association would buy the lease from my parent's share (64%) and then we would proceed to by 65% off of them. But because the housing association are effectively buying and selling on the same day, they class this as a sub-sale, and therefore refused to lend us the money. My solicitor argued with them but they still said it would be a sub-sale.
Has anybody had any similar experiences or advice to give on how we can move forward with this. I am currently simultaneously seeking alternative mortgage arrangements and contacting housing association to change the way the transaction is handled.
The deposit we are putting down is fairly large (not to mention completely legal and traceable) so I would have expected the bank to snap us up, seems not...
Thanks in advanced!
It's a tricky situation but I'll try to explain it as best as I can. My parents currently own a 64% share in a housing association house which they are having to sell due to divorce agreement.
As both parents are upset that to see the family home go, I thought myself and my partner would see if we could purchase it (the housing association had advertised it privately to no avail so was about to hit the open market). We applied for a mortgage and were accepted on salary and credit and all was hunky dory. I had always clearly laid out where the deposit/monies were coming from. My father has agreed to gift his share towards our deposit as he is now well established and would rather help us be able to buy our house.
Then a few weeks ago my solicitor contacted me because he had tried to confirm the proceedings on completion with the mortgage company and they had come back with a pretty serious question.
Here it is: on completion the housing association would buy the lease from my parent's share (64%) and then we would proceed to by 65% off of them. But because the housing association are effectively buying and selling on the same day, they class this as a sub-sale, and therefore refused to lend us the money. My solicitor argued with them but they still said it would be a sub-sale.
Has anybody had any similar experiences or advice to give on how we can move forward with this. I am currently simultaneously seeking alternative mortgage arrangements and contacting housing association to change the way the transaction is handled.
The deposit we are putting down is fairly large (not to mention completely legal and traceable) so I would have expected the bank to snap us up, seems not...
Thanks in advanced!
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