Confirmed Mortgage Offer Withdrew - Section 106

kingstreet

ACG said:

kingstreet said:

On a Discounted Open Market Value (DOMV) property, the third party (eg local council) owns the share of the property which is never sold. Only the occupant owner's share changes hands. IMHO when Fluent asked if there was any third party ownership, the answer should have been yes. I don't know if describing the property as affordable housing should have alerted them further as this is also used to describe shared equity and shared ownership.

I wouldn't like to call this if the FOS adjudicates.

This is for my benefit as this appears to be something I would learn from...
If there is a S106, does that mean the council own (or are likely to own) a portion of the property? I was always under the impression the owner owned 100%, but there was a restriction on the title deeds. Admittedly I have only ever done maybe 3-4 S106 mortgages. 

Assuming this is the case, I think even I would have been caught out by this. 

That's what I'm trying to establish. Shared Equity is 100% ownership with a second charge. Shared Ownership is ownership in different shares. I don't know the legal basis used for ownership under DOMV - just a S106 agreement, or more than that.

ellmo

I spoke to the council last night, the person who deals with the scheme has confirmed that I own 100% of the property. She's been really helpful and told me that Fluent and the Ombudsman can contact her at any point. Also said she's not had many problems with other people.

I think this is what I'm trying to get at with the Mortgage advisor... Ive confirmed and said all I know just like I did with the first mortgage they found for me (Im on affordable housing scheme). I didn't know what a section 106 is until all of this. 

I go to them and pay premium because they're the experts. Shouldn't they do the relevant checks and find a product what suits my circumstances ect? If not they should get advice from from others?

ACG

ellmo said:

I spoke to the council last night, the person who deals with the scheme has confirmed that I own 100% of the property. She's been really helpful and told me that Fluent and the Ombudsman can contact her at any point. Also said she's not had many problems with other people.

I think this is what I'm trying to get at with the Mortgage advisor... Ive confirmed and said all I know just like I did with the first mortgage they found for me (Im on affordable housing scheme). I didn't know what a section 106 is until all of this. 

I go to them and pay premium because they're the experts. Shouldn't they do the relevant checks and find a product what suits my circumstances ect? If not they should get advice from from others?

Based on this, I think you will get the result you want in the end.