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  • FIRST POST
    • Lgas
    • By Lgas 16th Mar 17, 5:55 PM
    • 322Posts
    • 109Thanks
    Lgas
    Staircasing shared ownership
    • #1
    • 16th Mar 17, 5:55 PM
    Staircasing shared ownership 16th Mar 17 at 5:55 PM
    Hi, I have had a quick search but only came across very old threads. We bought our house in early 2011 for £155,000 at 50% mortgage 50% rent shared ownership.
    It is now worth around £197,000 (which is what next door hair sold for which is identical).

    My question is, do we try and staircase to the largest share we can or overpay on our current mortgage by as much as we can afford? We don't have plans to move in the near future, we love our house, but obviously the price is increasing and any more shares would be at the current market value.


    Thanks!
Page 1
    • donfanatico
    • By donfanatico 17th Mar 17, 10:09 AM
    • 451 Posts
    • 204 Thanks
    donfanatico
    • #2
    • 17th Mar 17, 10:09 AM
    • #2
    • 17th Mar 17, 10:09 AM
    I would say this, as this is my understanding - we only bought shared ownership recently.

    Read the lease and other terms to see if once you buy 100% you can sell freely and it is all yours without the HA having any say.
    If it is, then think about this. If you want to stay there for more years then it makes sense to buy up to 100% as the mortgage will come to and end but the rent will never (and it will keep increasing) OR if you want to sell and move then overpay as much as possible and with the price increase you will have hopefully enough equity to buy on the open market. You will need to do the sums.
    • Lgas
    • By Lgas 19th Mar 17, 3:46 PM
    • 322 Posts
    • 109 Thanks
    Lgas
    • #3
    • 19th Mar 17, 3:46 PM
    • #3
    • 19th Mar 17, 3:46 PM
    Thank you! It is a Bellway development and once you have staircased to 100% it becomes freehold. Overpaying on the mortgage sounds sensible as I don't think this is our "forever" home, I expect we will be here for another couple of years but we will want to move somewhere larger at some point I imagine.
    • Lgas
    • By Lgas 19th Mar 17, 3:47 PM
    • 322 Posts
    • 109 Thanks
    Lgas
    • #4
    • 19th Mar 17, 3:47 PM
    • #4
    • 19th Mar 17, 3:47 PM
    I need to double check about selling it, I do vaguely remember Bellway asking to have first refusal to find a buyer but the paperwork isn't to hand.
    • AliceBanned
    • By AliceBanned 22nd Apr 17, 3:26 PM
    • 2,275 Posts
    • 1,049 Thanks
    AliceBanned
    • #5
    • 22nd Apr 17, 3:26 PM
    • #5
    • 22nd Apr 17, 3:26 PM
    Mine is shared ownership with a housing assoc and they have first refusal l to find a buyer for a nomination period of 2 months - after that I can sell either the share I own or if I find a purchaser who wants 100% they can buy 100% on the open market.


    I am in a similar situation to you in that I own 40% and prices have gone up a lot in the area - and wondering whether to staircase or not.
    DFW - goal December 2019
    Bank of mum and dad: £1600. Debt at LBM: £14,418. Current: £10,415 Total debt repayment: £500pm
    _________________________
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