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Is it possible to do a Shared Ownership scheme privately?
Lokolo
Posts: 20,861 Forumite
For example, I have a family member on low income who is on the list for shared ownership, but properties in my area for shared ownership are in very high demand.
So I was thinking, can I do it myself? I would buy 75% of a property as a BTL (with say a 25% deposit) and my family member buy 25% as residential (again with a 25% deposit).
Before getting into the logistics of whether I should do it or not, is it possible?
So I was thinking, can I do it myself? I would buy 75% of a property as a BTL (with say a 25% deposit) and my family member buy 25% as residential (again with a 25% deposit).
Before getting into the logistics of whether I should do it or not, is it possible?
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Comments
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No, it would have to be an approved scheme with a recognised landlord.0
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There's nothing stopping you doing something similar though. If you buy the property in joint names as tenants in common, then get a solicitor to draw up a deed of trust confirming how much of the mortgage you will each pay and how much rent the other party will pay you. Not exactly the same as a shared ownership but it would have a similar result.0
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That's a good idea. Would that be possible with 1x residential mortgage and 1x BTL? Given I wouldn't technically be living there.0
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not if you need a mortgage from a BTL lender for your bit of the purchase cost. Think about it, would a lender really give you a mortgage on a property part owned and occupied by someone else? Of course not. PBA's post meant that you would need to be named on their mortgageThat's a good idea. Would that be possible with 1x residential mortgage and 1x BTL? Given I wouldn't technically be living there.
on the other hand if you can raise the money yourself (re-mortgage your own home?) then you are free to spend that money how you wish including buying another property and agreeing rental terms with the other person0
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