Sell part of a residential property

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  • flyingfreehold
    replied
    in my case yes

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  • loanarranger
    replied
    Are the properties held in joint names?

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  • Section20z
    replied
    flyingfeehold,

    Likewise, I own several properties with a total stranger (or he was 20 years ago anyway) , no written contract, we sold one once and review every year or so.
    Not a problem for normal humans and certainly no breach of lease or mortgage.

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  • flyingfreehold
    replied
    I own a some properties jointly with a sibling. It works because of complete trust. Whenever I want to sell he doesnt, and vice versa, so the arrangement just goes on decade after decade. But I don't know whether it would work with a stranger.

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  • ram
    replied
    Read your lease .
    It will proably say, not to part with "Part of your demise"
    in other words, you must sell up and move out, and cannot sell half your flat.

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  • loanarranger
    replied
    Maxima it is important to note that where a mortgage loan is concerned , the responsibility for ensuring the mortgage payments are made rests 100% on each party to the loan even if as in the conventional manner of say husband and wife having a joint mortgage but the payments are made by the husband, so any missed payments the lender will reach out to both entities for any arrears to be paid.
    Unfortunately you can’t have your cake and eat it in the manner described.

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  • jpkeates
    replied
    That's not how it works.
    If the buyer buys 50% of the property and the mortgage is <50% of the property value, you use the sale proceeds to pay off the mortgage at the same time as the sale is confirmed.
    You end up with 50% of the property mortgage free and the buyer ends up with their 50% of the property.

    The problem is that neither of your 50%'s are worth anything, because no one would want to buy them.

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  • maxima
    replied
    not primary residence. and not anything regulated. I actually found how it is called - "tenancy in common" (there is also joint ownership but its not suitable for me). it is pretty viable except one thing unfortunately - the mortgage payments and responsibility for the mortgage are shared also.. which defies the main point - to rid off of the mortgage

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  • loanarranger
    replied
    It is very possible for an application to be made to the current lender, assuming that the property is a BtL and not a Regulated home ownership mortgage. On the former basis the lender will require the potential acquiree to be underwritten in the normal way, only then can the legal be satisfactorily completed; BUT if this is your primary residence then forget it no lender will give any consent for a third part ownership .

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  • jpkeates
    replied
    Youll find it very hard to get someone to do the conveyancing, because on completion, you'll both own a property that's worth very little to you, because you can't sell it.

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  • Section20z
    replied
    Originally posted by maxima View Post
    Can I sell 50% of my flat in London? Its leasehold with share in freehold through a management company with mortgage which is less than 50%.
    There is a guy I know personally who might buy it that way because he wont need to raise as much money as buying 100%.
    Whats the correct legal name of such procedure? (I saw something called shared ownership but it seems to me its about buying out a council flat or something which is not applicable here)..
    Yes, of course, you'd simply be transferring to joint ownership but you'd need to redeem your mortgage (or get their consent) and best get a cast iron agreement signed in case of future disagreement.

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  • landlord-man
    replied
    PMSL - so you sell 50% of the property and the mortgage company effectively lend 100% on the 50% they have left?

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  • Gordon999
    replied
    You are unlikely to find a buyer interested in buying 50% share because there will be much friction if disagreement arises.

    The shared ownership scheme is offered to key workers who buy a quarter share or half share and pay rent on the other share to a Housing Association.

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  • maxima
    started a topic Sell part of a residential property

    Sell part of a residential property

    Can I sell 50% of my flat in London? Its leasehold with share in freehold through a management company with mortgage which is less than 50%.
    There is a guy I know personally who might buy it that way because he wont need to raise as much money as buying 100%.
    Whats the correct legal name of such procedure? (I saw something called shared ownership but it seems to me its about buying out a council flat or something which is not applicable here)..

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