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Can I sell shares in my house?
gazzamemate
Posts: 3 Newbie
Been trying to sell my house for a while now. Obviously my timing isn't great but needs must. After a meeting with my estate agent she informed me that they currently had noone on their books looking to buy in our price range.
In a nutshell we have been in the same house for 10 years and want to move to a lower priced house and reduce our debt. If house is on the market for £300k, is it possible to sell a 75% stake in the house with an option to purchase the remainder or to become payable if resold? This would mean we would have the capital to buy a smaller house whilst giving someone else the opportunity to live in a house they would otherwise not be able to afford. I have no idea what legal minefield I may be opening up with this, but I can ill afford to drop the price by 25%, but could defer the payment, or maybe use it as part of security on next home?
In a nutshell we have been in the same house for 10 years and want to move to a lower priced house and reduce our debt. If house is on the market for £300k, is it possible to sell a 75% stake in the house with an option to purchase the remainder or to become payable if resold? This would mean we would have the capital to buy a smaller house whilst giving someone else the opportunity to live in a house they would otherwise not be able to afford. I have no idea what legal minefield I may be opening up with this, but I can ill afford to drop the price by 25%, but could defer the payment, or maybe use it as part of security on next home?
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Comments
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Forget it, no-one will be able to get a mortgage on three-quarters of a house.
If the estate agent has no-one on their books in your price range, you need to find a different estate agent.
If your house is on the market now, post a link to it and get some friendly advice on making it look its best.
Best advice is to price slightly under market value rather than follow the market down.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
If your house is on at £300K with no interest then its probably overpriced.
If someone were to go for your share scheme (unlikely), then they'd pay £225K for 3/4 of it - or still £300K pro rata, which we've already established generates no interest.
Why not just drop the price, thats clearly what it needs.0 -
Massive minefield. What if they bought 25% and then stayed there for 100 years, passing their 75% share on to their kids?
Unless you covered yourself in some way, you could end up having sold it for 75% of it's value.
If you tried to cover yourself, it would limit the interest.0 -
You and your buyers would have to have a joint mortgage on the 100% which would have to be jointly owned. So do you want to be stuck with trusting your buyer to make payments etc and land you in a bad credit rating etc. If you wanted to realise your 25% you would need the other people's signatures and they might not want to sell!
It just can't be done.RICHARD WEBSTER
As a retired conveyancing solicitor I believe the information given in the post to be useful assuming any properties concerned are in England/Wales but I accept no liability for it.0
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