Idiots guide to shared ownership purchase

jack290292

Would love some advise please for first time buyer - hoping to buy 50% of shared ownership property.
So far viewed the property and had verbal acceptance of offer from owner of the 50%. Other 50% owned by HA.
Have MIP and expressed interest in using a solicitor with good knowledge of SO.
What is our next step please? The current owners are not in a rush to complete as they have not found anywhere yet - we don't mind as this flat is for our Son who still lives at home with us so no rush on our side either.
Do we now ask broker to get the mortgage? Do we ask solicitor to start acting now?
Just need advise on next steps please - thanks in advance

debtisnotme

So you are buying the property but for your son to live in? This may not be possible with SO.

jack290292

No sorry - I am asking the questions on behalf of my Son as I have found this forum really helpful.

00ec25

the order of events is no different to any other property purchase

1. your son approaches lenders (via a broker if necessary) to find out how much he can borrow on a mortgage. he can if he wants get a MIP (mortgage in principle) which indicates the amount he can borrow in principle but subject to the actual property he wants to buy being acceptable to the lender

2. your son views properties within his budget and decides on one he is interested in. Your son makes an offer. This is accepted or rejected.

3. your son pays for a survey, reads the report and decides if he is going to alter his offer based on the survey reporting areas of concern that will cost £ to fix. The vendor may or may not agree to a revised offer depending on their view of how "bad" the surveyor's findings are.

4. the surveyor sends his "valuation report" to the lender and the lender informs your son that they will or will not now make a firm mortgage offer on that specific property (subject to any retentions).

5. your son agrees a "final" offer with the vendor.

6. Your attempts to get the vendor to take the property off the market whilst your son's purchase is processed. The vendor may or may not agree. The race is now on to reach exchange of contracts before someone else makes a better offer and the vendor tells your son to jog on elsewhere....

7. Your son appoints a solicitor to start the conveyancing process. Your son waits whilst the solicitor does the searches and comes up with queries which the vendor needs to reply to. Your son lives in fear that the vendor delays responding whilst still marketing the property in the hope of a better offer from someone else.

8. Your son and the vendor agree the contracts are ready to exchange and they exchange. Your son cannot now back out, nor can the vendor. A completion date is set and your son counts down the days until he moves in.

9. Your son's solicitor asks your son to choose how much SDLT he wants to pay: a) the market value election or b) the staircase value. Your son scrabbles around to find the money to pay the SDLT as he'd forgotten that may be the case.

10. your son pays his deposit and any SDLT monies to the solicitor and the process moves inexorably to its completion.

Lurkingtoposting17

One thing I would say. When I sold my SO property, I had two viewers; one and old friend from school, one someone I didn't know.

They both offered asking price, I had preference for old friend. SO turned him down.

Even if owner accepts your offer, I think the HA gets final say in who actually gets the property....