Advice on shared ownership mortgage

sugarbabe84

Hi,

I'm a first-time buyer and I would really appreciate some advice as I feel in the dark with this house buying process, with no one to help me.

I am currently saving on the help to buy scheme and I think by the time I would exchange my bonus would be around £1200. I was wondering at which point this money would back come to me? and also at which point the £500 reservation fee would come back to me? Does the bank paying the loan directly to the housing association, then I get back the £1700 change? Or does the bank reduce the loan amount?

I have found a house that I really like, through a housing association. The only downside to this property is that I will have to do the carpeting myself and also get the appliances (of which I already have a washing machine). If that 1700 was to come back to me then it would help me greatly.

The housing association has now said they are putting together a package of optional extras and should be able to give me the total cost soon, which will be bolted on. However, I realise the advantages of doing the flooring myself as I would want wooden flooring downstairs and carpets upstairs.

YHM

Morning Sugarbabe. Unsure of the reservation fee you mention, but the HTB ISA bonus doesn't actually go to you, it goes to your solicitor and they use the bonus as part of your completion funds, so in theory that is £1200 less money you need to give to your solicitor come completion.

Does that answer your question?

sugarbabe84

YHM wrote: »

Morning Sugarbabe. Unsure of the reservation fee you mention, but the HTB ISA bonus doesn't actually go to you, it goes to your solicitor and they use the bonus as part of your completion funds, so in theory that is £1200 less money you need to give to your solicitor come completion.

Does that answer your question?

Thank you. That makes sense.

I was wondering if stamp duty applies to the full property value or whether it would only be on the share that I buy?

YHM

Hi Sugarbabe.

You have both options with a shared ownership purchase. I don't want to step into the realms of tax advice, so will just give you this gov.uk link

https://www.gov.uk/guidance/sdlt-shared-ownership-property

sugarbabe84

YHM wrote: »

Hi Sugarbabe.

You have both options with a shared ownership purchase. I don't want to step into the realms of tax advice, so will just give you this gov.uk link

https://www.gov.uk/guidance/sdlt-shared-ownership-property

Thank you! Very helpful.

I was wondering how much your brokerage fees are?

YHM

Hi Sugarbabe.

No fixed fee. Its dependant on complexity of case.

kingstreet

The reservation fee is accounted for in the completion statement.

Usually, this means the vendor's solicitor asks your solicitor for £500 less so your final bill payable to your solicitor is also £500 less.

sugarbabe84

kingstreet wrote: »

The reservation fee is accounted for in the completion statement.

Usually, this means the vendor's solicitor asks your solicitor for £500 less so your final bill payable to your solicitor is also £500 less.

Thank you.

You mean the £500 I would have used to reserve the property right?

By vendor, you mean the housing association selling the house?

Oh, are there any good Shared Ownership Lawyers you would recommend?

kingstreet

Yes.

Yes.

No.