Discount Market Sale London

Mitchell_

I recently bought a DMS property. To try answer some of the above
1) There are a fair few mortgage providers about, Nationwide being one (and every first time buyer seems to use them anyway, help to buy or not).
2) when you sell, you notify the council and then can sell to anyone (no matter where they live/work), unless the council already has someone on a waiting list to buy it, in which case you sell to them (at market rate)
3) Legally you own 100% of the property, with the bank holding an 'equity charge' against it (ie mortgage, same as any mortgaged property), and the local council also holding an 'equity charge' against it (the % they 'own').
4) because of (3), your mortgage loan to value ratio is very good- ie if council 'owns' 40% and you put in a 5% mortgage, then your loan-to-value ratio is 55% (rather than 95% as it would be if you had a 'shared ownership' property). Ie you get *very* low interest rates on mortgage.
5) because of (3) you can make any alternations to the property that you want as if you owned it outright- but you pay for them (obviously).

Hope that helps.

dukeycouture

Thanks for this, so helpful! Please can you let me know how you come across DMS properties: at the moment Hammersmith & Fulham is the only borough advertising Chelsea Creek and Fulham Reach. I'm in Kensington and Chelsea and also work in H&F... do you know where I can find DMS properties in these boroughs?

Mitchell_ wrote: »

I recently bought a DMS property. To try answer some of the above
1) There are a fair few mortgage providers about, Nationwide being one (and every first time buyer seems to use them anyway, help to buy or not).
2) when you sell, you notify the council and then can sell to anyone (no matter where they live/work), unless the council already has someone on a waiting list to buy it, in which case you sell to them (at market rate)
3) Legally you own 100% of the property, with the bank holding an 'equity charge' against it (ie mortgage, same as any mortgaged property), and the local council also holding an 'equity charge' against it (the % they 'own').
4) because of (3), your mortgage loan to value ratio is very good- ie if council 'owns' 40% and you put in a 5% mortgage, then your loan-to-value ratio is 55% (rather than 95% as it would be if you had a 'shared ownership' property). Ie you get *very* low interest rates on mortgage.
5) because of (3) you can make any alternations to the property that you want as if you owned it outright- but you pay for them (obviously).

Hope that helps.

Lu76

Hi Mitchell,

Please could you let me know the pros and cons of this scheme and if you have sold your property, how the selling on process works?

Would really appreciate it! Also happy for you to reply through an inbox message