Shared owner ship - Buying 100% sahre and then renting out

Paji1034

Back in 2008, I purchased 25% shares in a shared ownership 1 bedroom flat in my sole name with total market value of £140K at the price of £35K. It was a painful experience as I struggled to get mortgage and I think I spent around 3.5K for admin costs (solicitor, big mortgage deposit etc) My landlord is a private housing association. In 2010, I intended to sell my 25% share as I was married and my intention was to move to a 2 bed house/flat. I paid about £200 plus for a RICS valuation (as per my lease) and new valuation was £135K. I could not sell my share in the flat in 2010 due to job/family reasons. Last week, I paid another £210.00 to chartered surveyor and carried out another RICS valuation but to surprise the total 100% market value of the flat came out as £125K. I have discussed this situation with a local state agent and he thinks this property is worth 125K to 130K in the current market situation. He also suggested me to think of buying rest of 75% share at full market value of £125K of the flat as he thinks I will not have to pay any stamp duty, state agent commission etc. He think this property can yield a rental income of at least £650 (£675 is also possible). I am seeking opinion from another state agent if it is worth to buy rest of 75% share. I have following questions if any one can help with.... * Do I need to pay stamp duty as my 25% share was purchased on the total flat value worth £140K in 2008??? * If I buy this property as a whole for residential purpose and after a year or so can I switch to 'buy to let' mortgage and put this on rent. (I am thinking to apply for exit fee free tracker mortgage so I can switch easily). * Are there any specific conditions for buy to let mortgages ??(I can understand I need to arrange minimum 25% deposit which should be fine.) * I am full time employer and my wife is home maker. Could I buy this property in her name or transfer later in her name before I switch to buy to let mortgage??

R_P_W

Sorry I'm a bit confused. When you bought 25% you struggled to get a mortgage for that amount? You also say you had to put in a large deposit?

I wouldn't seek advice from an estate agent on whether you should buy this and/or then rent it out - they will be thinking about their own interests - not yours!

Do you now have another property you live in or are you looking for another property aswell

Paji1034

Thanks for the reply....Yes as that time there was only one lender willing to lend me due to temp job.... Now I have a full time permanent job and my bank is happy to lend me upto 225K. I would like to have another property in one year time. So my plan is buy the 100% share of this property on fee free exit mortgage and then after an year apply for buy to let for this property and then get another 2 bed house for my main residential.

brit1234

Have you looked at your terms and conditions, most shared ownership properties you can't rent out?

I echo, don't listen to estate agents.

Tainted_love

Check terms and conditions, I own a 50% share in a property and thinking of buying 100%. If I do this there are no restrictions, it is like owning a normal property with no covenants so letting it out or selling to any buyer on open market would be fine. It depends on the HA and small print on lease.

Paji1034

Hi I checked with HA, if I will have 100% share then I can sell to open market and I can rent out so no issue there....Also I got another question, do my solicitor needs to do all the searches etc again as these were done in 4 years ago?