Struggling to sell your property - this may be of interest - 26/2/09

Author: Jeni Browne Posted on: 26 February 2009

The main reason would be buyers are not buying right now could well be due to a lack of deposit, plus a perception that there are no mortgages available.  And if you are trying to sell a property right now, this could be proving extremely fustrating.  So here is a idea which may just clinch you a sale.

There is a lender out there who will accept a shared ownership arrangement between the vendor (even though they are a private individual) and a purchaser.  This means that the buyer will acquire the property in their own name and the vendor will retain a % share in the property by way of a second charge.  The % share owned by the vendor will be classed as the buyers deposit. 

So to put this into figures.  Property is being sold for £100,000.  The agreed share is 75% for the buyer and 25% for the vendor.  Therefore the buyer is treated as if they have a 25% deposit even though they have not parted with any deposit from their own means.

The vendor will enjoy a growth on their share of the property as will the new owner meaning that even if you sell now when the market is depressed, you will not have crystalised your loss on value in its entirety.  There are some clauses that sit around this type of set up (favorable towards to the vendor) so if you want to find out more, give us a call and we can fill you in.