Part purchase from landlord

[latenitetellyvision]

We are currently renting a property that we would like to buy from the landlord.

All our equity is in another property in Spain. We are not expecting to be able to release this cash for 5 years.

The property we are living in could be purchased outright for £500k

We can agree with the landlord to purchase 50% of the property now, and the balance at some point in the future. He would receive a lump sum now, and 50% rent going forward.

Would this be possible and are there any lenders that would loan £250k against the property ?

Presumably we would have to own the property 50% with the current owner

But how do we agree this legally so that it protects both parties ?

Many thanks

[JustinN]

As far as the legalities are concerned, there should be no problem in setting up the arrangement. Any good conveyancing solicitor will be able to help.

As far as a lender is concerned, that will be more problematical: you will need to find a lender prepared to lend on a private (as opposed to housing association) shared equity scheme

[Richard Webster]

As far as a lender is concerned, that will be more problematical: you will need to find a lender prepared to lend on a private (as opposed to housing association) shared equity scheme

Can't see it happening. If the property belongs jointly to you and the former landlord then you and former landlord would be responsible for themortgage and I can't see the former landlord agreeing to to that!

As a conveyancing solicitor I believe the information given in the post to be useful (assuming the property is in England/Wales) but I accept no liability except to fee-paying clients.

[JustinN]

It can be done as a shared equity release - very common with housing associations, but more difficult to get a lender interested where the other party is private