Solicitor handles sale of shared ownership dwelling in Birmingham

Conveyancing in Birmingham is sometimes carried out for the sale of shared ownership properties, as was the case for Solicitor Mary Spiteri-Panayi when acting on behalf of Ms.M, the owner of a dwelling on Rea Road, Northfield, Birmingham, West Midlands, B31.

Shared ownership schemes are intended to give qualifying people the opportunity to buy a home at less than full market price. Buyers will initially pay a proportion of the full market value, often 50% but sometimes less. They will then be granted a lease of the house or flat by a housing association. This will contain provisions for them to pay a rent which is determined by reference to the value of the outstanding share.

The purchaser (or any subsequent owner) has the option to buy all or part of this remaining share, usually in specified steps, up to the full value. This process is commonly known as ‘staircasing’ and if the property is a house then when it has been staircased to 100% the freehold title will be transferred to the owner.

When acting on the sale of such a residence as part of Conveyancing in Birmingham, the freeholder’s consent to the disposal has to be obtained. Mary therefore contacted Midland Heart (20 Bath Row, Birmingham, B15 1LZ), the association which owned the freehold, for confirmation that they would agree to the transfer.

It was also a requirement that they had to approve the buyer’s mortgage lender, as these leases contain various provisions which protect lenders if the borrower defaults on the mortgage. Mary therefore wrote for the necessary consent and approval.

When selling such a dwelling which has not been fully staircased, it is necessary to ascertain the proportion which the vendor then owns.  The price being paid should reflect the value of the proportion the owner has at the time of the sale, but sometimes purchasers agree to pay the full open market value on the basis that the amount required to buy any remaining portion will be paid to the housing association on completion so that the freehold can be obtained. However in this case the sale was on the basis that only the original 50% portion was being transferred.

Mary also had to obtain other information about rent payments and other management information similar to Conveyancing in Birmingham for ordinary leasehold apartments.
Midland Heart was very co-operative in confirming their consent and supplying the information required. Their helpful attitude and prompt responses enabled the sale to be swiftly completed, to the satisfaction of all concerned.

For more information or to instruct a Solicitor for your sale or purchase, contact Fridaysmove on 0330 660 0286.

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