Myth-busting – Electrical Safety installations Act 202011:19 AM, 3rd August 2020
About 3 days ago 54
I own a 5 year old two bed flat. It was not bought as a business venture but as a student property for my daughter and friends with a 95% LTV mortgage. I currently let it out as an independent studio and a 1 bed flat.
If I tried to sell the flat I may need to convert it back to a 2 bed and will then only get the original purchase price. I believe the overall floorspace of the flat is too small to be converted into two new independent leases as it is only 56 square metres. The studio is around 20 square metres and the 1 bed is around 36 square metres.
My question is: can I sell a 50 or 60% share of a slightly inflated valuation, so I can reduce the interest rate on the remaining mortgage, receive some income on the retained share, and also help someone get on the property ladder?
Although I did not buy this property for business purposes I would like to make the most of the asset but don’t really want to wait any longer than this summer for property prices to improve further.
I have seen homes advertised as shared ownership before and would like to do the same but before I seek legal advice I would like to hear if anyone has had experience or has knowledge of shared ownership and the pitfalls or advantages?
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