How to buy 50% of an apartment?

zozo1992

Hi all,

I am a first time buyer. I am looking to buy 50% of an apartment where the original market value is £400,000 in London. So I am going to pay 200K in cash. The apartment is a normal apartment being sold from a private owner and not on a shared ownership scheme. I know the landlord personally (a friend) and I can negotiate this with them. The owner is the sole owner and owns 100% of the apartment. The landlord is the council and the flat is a leasehold.

Q1: Is it even possible to buy 50% of this apartment at 200K without a shared ownership scheme? Or any flat/house that is.
Q2: What stamp duty do I have to pay on 50% given I am a first-time buyer?
Q3: What are the normal procedure to do this? Do we need to do Tenancy in common?

Any advise giving my above situation would be highly appreciated.
Thank you,

Thank you in advance,

Slithery

Who's buying the other half?

xylophone

Transfer of Equity? Does the friend own the property outright or does he have a mortgage?

http://www.hip-consultant.co.uk/blog/transfers-of-equity-and-legal-ownership-of-a-property-123/

You should consult a conveyancing solicitor about tenancy in common and a Deed of Trust to cover each party's position re sale etc.

zozo1992

Slithery wrote: »

Who's buying the other half?

100% is currently owned by a private owner which I know personally. I want to buy only 50% of this apartment from him. So from 100% by him to 50% him and 50% me. Is that possible?

zozo1992

xylophone wrote: »

Transfer of Equity? Does the friend own the property outright or does he have a mortgage?

You should consult a conveyancing solicitor about tenancy in common and a Deed of Trust to cover each party's position re sale etc.

yes I he will transfer 50% of equity to me. He owns the flat outright.

AdrianC

zozo1992 wrote: »

100% is currently owned by a private owner which I know personally. I want to buy only 50% of this apartment from him. So from 100% by him to 50% him and 50% me. Is that possible?

Yes, absolutely.

If he's willing to become so financially intertwined with you. And if your mortgage lender is happy for that situation - the other joint owner would almost certainly need to be on the mortgage, too.

Tom99

It is fairly straight forward for the existing owner to sell you a 50% interest.
You would then both have full rights over the property including living there and inviting your mother in law to stay.
Is that the intention? If not and what you want is for only you to have a right to live there then the contract/sale agreement will be much more complicated akin to a normal shared equity purchase where say you buy 50% from a housing association and the HA lease to you the other 50% with you having the option to staircase to 100%
Even if you sort that out and you end up with 50% but with a full right to occupy then unless you have the option to staircase to 100% you may find the flat almost impossible to sell. Do you need a mortgage on this 50% you are buying?

getmore4less

I am looking to buy 50% of an apartment where the original market value is £400,000 in London. So I am going to pay 200K in cash.

and.........

yes I he will transfer 50% of equity to me. He owns the flat outright.

eddddy

Answers will depend on what you and your friend are trying to achieve.

For example, is it one of the following:

• It will be a jointly owned BTL investment
• It will be a place for both of you to live
• It will be a place for just you to live

Why is the other person contemplating selling you 50%? For example, is it because:

• He/she wants to keep £200k in the London property market, but wants £200k cash for other purposes
• He/she is doing you a favour

And why are you contemplating buying 50%. For example, is it because:

• You only have £200K, and you can't get a mortgage.
• This is an investment opportunity
• You're doing your friend a favour

(As an example, depending on what you are trying to achieve, it may be simpler to lend your friend £200k secured by a charge on the property, and an agreement that you get 50% of the eventual sale proceeds.)