Buying a new home before selling shared ownership

doby1515

Hi 

Myself and my mum jointly own 50% of a flat with Notting Hill Genesis (NHG) owning the other 50%.  This is a shared ownership. 

My share was inherited from my dad earlier this year. I will be putting the property up for sale shortly as I would to move into a house. 

I have just had an offer accepted on a house and intend to purchase this chain free without the proceeds of the above property.  Thus there will likely be a period of time where I own two properties. 

Does anyone know if I am allowed to do this? One person from NHG said it would be fine however another said I am not allowed to do this as people with shared ownerships are not allowed to own more then 1 property.   Has anyone gone through a similar situation? 

I have emailed them for clarity but would welcome any help/thoughts here

Thank you!

housebuyer143

I don't imagine they can stop you if you are selling it, you are not allowed to rent it out though. What does your lease say? 

If you don't tell them, they also are unlikely to know 🤷‍♀️ 

You will have to pay the additional rate of stamp duty though and claim it back when you sell the other property within 3 years. 

Keep_pedalling

Did your father leave you his share outright or did he go with the better option of leaving your mother a life interest in his share? If the latter then you don’t actually own a share in it as it will currently be held in trust until your mother dies or no longer needs it. 

doby1515

Thanks both.

He left his share to me and the property deeds have both mine and my mums name on them.
Afraid I have already told NHG and sent an email earlier given that I couldn't get a straight answer over the phone. 

I am unable to find anything in the lease. All I can see is words to the affect of:

1. I need to let the landlord look for a buyer in the first 2 months. Only after then can I be allowed to find a buyer myself. 
2. I need to sell my share at the fair market value ("the price at which such offer shall be made shall be no greater then the open market value of this lease evidenced by certificate of the valuer") 

FAQ on their site under the question, "What if you've already made an offer on another property" says:

Remember that as part of your lease, we have a nomination period of eight weeks to find you a buyer for your share.

Therefore the person selling to you must be prepared to wait until we have found you a buyer for your home or you risk losing mortgage and solicitor’s fees if they decide to pull out. Once a buyer is attached the normal selling process will then take a minimum of eight weeks.   

I read online that they there are blockers with those with help to buy properties but not seen much about shared ownerships. 

> You will have to pay the additional rate of stamp duty though and claim it back when you sell the other property within 3 years. 

Thanks, yes I am happy to do this

RAS

Is your mum happy to be made homeless?

doby1515

Lol she is onboard with the above. Her plan is to use the funds from the sale to live abroad.