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Buying a unique property with a private mortgage

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Comments

  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    snickpan said:
    I wouldn't rush in, no-one knows what property prices are about to do.  
    At some point you'll need a solicitor (for a declaration of trust maybe) if you'll be owning the property but someone else, ie the sellers bank, owns a chunk of the property.  May as well get chatting to that solicitor now, rather than your peer group here.
    The seller's mortgage lender does not own a chunk of the property.  The mortgage lender doesn't own any of the property and never has, that's not how mortgages work.
    The mortgage gives effect control over the property to the lender until the last £1 is paid. 
  • AdrianC
    AdrianC Posts: 42,189 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper
    snickpan said:
    I wouldn't rush in, no-one knows what property prices are about to do.  
    At some point you'll need a solicitor (for a declaration of trust maybe) if you'll be owning the property but someone else, ie the sellers bank, owns a chunk of the property.  May as well get chatting to that solicitor now, rather than your peer group here.
    The seller's mortgage lender does not own a chunk of the property.  The mortgage lender doesn't own any of the property and never has, that's not how mortgages work.
    The mortgage gives effect control over the property to the lender until the last £1 is paid. 
    No, it doesn't.


    • I don't want to borrow the money 'normally' because I my last 2 years tax returns don't look good, as I run a company and have kept most of my cash in the business where there is much larger return on cash. I have the ability to cash out but prefer not to, as the company is an even better investment and supports >50 employees. Especially during the pandemic. 
    Many many lenders will do mortgages based on the profits of the company rather than how much you actually draw.  Most will realise that plenty of people dont draw all funds out for a multitude of reasons.   If this is the only reason then it isnt a block to obtaining normal finance.  

    your idea of a private mortgage is fine but unworkable as long as there is another mortgage company with a charge on the property.  
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