Mortgage Offer Received - Halifax - Shared Ownership - Special Condition to the offer question

GoGetter27

Hi All,

Hope you are all keeping safe as can be and warm in the lead up to Christmas!

I recently received some good news that my mortgage offer has been accepted by Halifax, however upon reading to offer I came across a special requirement, which I do not understand and if I am right in what I think it is I am going to consider refusing the offer.

I will be buying a 40% share in a new build, the condition states

"You must assign us the rights in the lease to buy further shares in the property and to buy the freehold or to be granted a new lease"

Now this to me suggests that Halifax will be looking to buy some shares in the property as well? I don't get it.

Can someone advise on this please?

The_Unready

What did Halifax say when you asked them about it?

GoGetter27

Well I have asked my solicitors about it. and they are going to get clarification, but thought to ask here, see if anyone knows the answer.

user1977

They just mean that if they repossess, they want to have the same rights as you to staircase etc if that helps them to sell. They're not going to do it in other circumstances. Nothing for you to be bothered about.

GoGetter27

If I own 40% and lets say Halifax decided to by 35% then my chance to staircase is lost.
This is what I am worrying about. Unfortunately my only option in London is shared ownership.
With the new build I understand I might never be able to own 100%, but I am looking to staircase at some point in the future.

GoGetter27

Oh ok user1977, I thought this was a new tactic of theirs in accepting mortgage offers for FTB who buy shared owned property.

kingstreet

Standard wording for any SO offer.

Lender needs to be able to purchase remaining share to sell 100% of property if it can't be sold as SO at time of repossession.