• Shared Ownership - Purchase Of 40% From The Tenant And 20 % From The HA

    By Guest on 05th Feb 2018

    Hello,

    I'm purchasing 60 % of a property, where 40 % is owned by the current tenant and 20 % will be purchased from the Housing Association.

    Does this purchase require two transactions: Purchase of 40% and staircasing to 60% which both have to be realised in a separate contract?

    I was told by my conveyancers that I would pay the whole amount (60 %) to the current tenant and he would pass 20 % on the HA. The draft contract was created where the whole purchase price is supposed to be paid to the current tenant. I don't feel like signing the contract as I would expect that there will some Memoranda of staircasing issued which would show that the current owner will staircase to 60% at the time of the sale.

    Is it safe for me to sign the contract as it is now?

    Another question is whether may I request variation of the lease as I wish the pre-emption right of the HA to be removed as per recommendation of the Government.

    I would really appreciate your advise.



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