If FTB can't afford full price, could I keep % ownership?

PasturesNew

zzzLazyDaisy wrote: »

PN - Why do you say it cannot be done?

The property can be registered at the land registry with OP and FTB on the title register as tenants in common with OP owning 15%. This is often what happens when friends buy together, and sometimes when a parent provides a deposit for a FTB offspring.

However, as joint owner, OP would also have to be jointly named on FTB's mortgage. Which means if FTB defaults OP is potentially liable for the whole amount, not just 'his' 15%

I wouldn't do it, especially in a falling market. Well actually, I wouldn't do it at all. But I don't think its correct to say it can't be done.

EDIT - OP in your other threads you have indicated that you are considering selling your house and then renting for a while. IMHO that is the best way forward in a falling market. Sell your house, reduce the price if you have to, and then rent until you find a house in the price range you are willing to pay. At that point you will be a FTB and therefore in a much better bargaining position.

Of course he could tie himself financially with a complete stranger.... but nobody would do that. Therefore he can't do it.

He's trying to have his cake and eat it ... which isn't possible in the way he expects it to work.

Gorgeous_George

Of course it can be done. There are plenty of shared ownership schemes already.

You may need them to pay rent for the 15% and their mortgage company will want a first charge on the property.

Might cost a few £££s to set up.

GG

mpsavuk

That must be the worst plan since Abe Lincoln said to his wife "I'm sick of sitting around the house, let's catch a show"

dean_ham

Just dont understand why anyone would want to be tied into a 15% ownership for... It's not worth the hassle.

epz_2

i seriously doubt you would find any bank willing to lend on a property with 2 different owners unless they were linked some way, at best they would make you jointly liable for the mortgage.

why would a FTB do this either, they would basicly have someone they had met a couple of times with a say in their house when they could wait a year and pay the same for a different house.

oh and if you think a bank is going think 85% is the ltv if someone else owns the rest then you have no chance.

PasturesNew

Gorgeous_George wrote: »

Of course it can be done. There are plenty of shared ownership schemes already.

You may need them to pay rent for the 15% and their mortgage company will want a first charge on the property.

Might cost a few £££s to set up.

GG

The SO schemes in existence have had a lot of legal money ploughed into their paperwork. And a company running them. Many lenders don't like lending on SO even with a formal company or even HA.

NikkiP_2

of course it can be done. I dont think it is a good idea but I have seen these before. Indeed some builders are now doing it to get their new houses sold.
House worth £200k. Sells to buyer for £200k but £50k is lent back by builder to be repaid interest only or when the house is sold.
Buyer raises 150k from mortgage ( assuming they can afford it) and gives first charge of the £200k house to the bank.
Builder takes a second charge.
Builder and Buyer enter a loan agreement for the £50k.
Bit messy and if house sold for only £150k bank gets the lot and Builder then has to sue the Buyer for their bit.

Substitute House Owner for Builder and thats how it could be done.

It can be done , but dont do it !!

Bf109

Financial_Savvy wrote: »

I have had a FTB view our house. But there may be doubts if they can offord the property due to the well known problems.

Could I potentially only sell say 85% of the share of the property? Then hold onto the remaining 15%?

It would mean a bigger mortgage I know.

Thoughts?

Dumbass .

wellandpower

Bf109 wrote: »

Dumbass .

Motion Seconded.

Any objections?

Passed then.

he is a dumbass.

Nick.._5

This thread is hilarious, the FTB can't afford "full price"?

If you can find a FTBer who would agree to this, I'll come round and give you the 15% myself

The sooner everyone realises that the "full price" of their house is what the bank and the FTBer are willing to spend, the sooner the market will free up again

Have you thought of lowering your price by 15%? I'm gonna go out on a limb here and say I think this might enable you to sell it