Shared Ownership problems

DClotworthy

Hi

I am new to home buying and decided to go for a shared ownership property with my brother, as our combined income is over the criteria allowed for this property only he can put his name forward on this. We still wanted to go ahead with this purchase is there anyway i can protect myself financially incase anything goes wrong between us. I will be making half the payments towards the mortgage.

Thanks

Ian_W

DClotworthy wrote:... only he can put his name forward on this ...

Can you give the reason for this? As I understand it property can usually be bought jointly and mortgages can be obtained in joint names, surely your best protection - why not in this case?
Might not be able to answer myself even with the explanation, but there are several resident posters who I'm sure will be able to.

rchddap1

Its possible that together they would both be classed as being able to purchase a property in the area without any assistance. Shared ownership properties are meant for people that do not earn enough to get onto the property ladder.

If this is the case why don't you look for a normal property, rather than a shared ownership one?

DClotworthy

rchddap1 is correct

we earn 6k over the required amount,tried looking for property outright but we would struggle to affford it. We are caught in the middle, too much to qualify for shared ownership on this partcular property (£190,000) and too little to comfortably afford a property around £150,000.

Ian W i totally agree with your point

I thought even if i could have my name on the property, by being on the mortgage i would be protected but my bank told me this isnt the case, maybe this is something specific to shared ownership property. I'm not entirley sure.

we earn a combined wage of 36k which isnt much but is 6k more than the limit for property of this value.

Help is much appreciated

rchddap1

You could try taking to a solicitor to see if something can be drawn up to give you both an equal share in the property, even though it will only be in your brother's name. I'm pretty certain that something legal can be done, but I just can't remember the details.

I'm in a shared ownership myself, and it is my name on the documents...as my OH would have had trouble getting a mortgage at the time. We haven't drawn anything up to say that we both own it, but I seem to remember someone telling us that something can be done.

Ian_W

Wasn't being funny, just wasn't clear why you couldn't own jointly - now it is.

rchddap1 suggestion is probably the way forward, you will need a solicitor to progress the sale ask him/her whether some form of legally binding agreement could safeguard your interest in the property.

Probably not as good as name on the deeds but some safeguard.

DClotworthy

Cheers guys, im just learning as i go along so you have to excuse the lack of clarity guys.

I will have to go down the route of having a contract its as you say Ian, not as good as having my name on the deeds but will have to do.

I've only been getting mortgage advice from banks but i should really look at mortgage brokers it seems

cattie

Not sure if it is applies here, but many moons ago when I was going to purchase a diy shared ownership property in my name only, my then partner would have to have signed a legal document before completion, agreeing that he had no claim or rights to the property. I believe this was in case of things like if I defaulted on the mortgage & the property was reposessed or I just upped sticks & left him. He wasn't too happy about this as he would have of course been contributing to the mortgage & other household expenses & didn't like the thought of having no real residential rights.We didn't proceed with the purchase in the end. It might just be worth checking in case their are any such rules still in place when intending to share a shared ownership property with somebody else who doesn't qualify to go on the mortgage, but because you are actually related, it probably makes a big difference as far as the shared ownership association are concerned.