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Shared Ownership Nightmare...help!!?
LondonSW5
Posts: 25 Forumite
Hi Guys,
I have a shared ownership problem that i need advice with kinda urgently.
I bought 25% of my property from a housing association. The full value was GBP 209,000.
The place was in a bad state of repair and badly needed modernising...additionally it wasn't even safe..but thats another story! I borrowed money from a friend and took a bank loan to do some extensive renovations..all with the housing associations approval.After the work was completed, I went to my current mortgage lender and asked for additional borrowings to my mortgage. My flat was re valued by them and was now GBP 300,000!
I was looking for the most i could in additional borrowings to repay my loan and friend. It transpired that since my flat has a worth greater than GBP 250,000 i can only borrow up to 70% of the equity in my share. Bit if a bummer but ok....
Still went ahead anyway. The credit check was perfect..all set for funds to be released to me when i get a call from lender telling me that i need a letter from housing association detailing that they have no issues with my having additional borrowings on the property and that the mortgage protection clause supports this.
The Housing trust gave me a letter stating that they have no issues with the additional borrowing but that the mortgage protection clause would not cover the additional borrowing. My lender now cannot proceed!!!
Lots of phone calls later and i still get no where with them. Apparently my only option is to re mortgage with a different lender!! Is this really the only option??!! This was never explained at any stage of the buying process...i do not have it written down anywhere i can see..and i feel really disappointed by the housing trust. Surely the point of the scheme is to help people onto the housing ladder and help improve the quality of home they have. I have basically almost increased the property value by GBP 100k ....they have a 75% share so have done them a HUGE favour and i cannot now repay my home improvments loans through additional borrowing becasue of this stupid mortgage protection clause!! Does anyone know what i can do....???
I feel so cheated and upset by the Housing Association. I cant believe i need to go to the expense and hassle and delay of finding a completely new lender, bearing in mind i have already just paid valuation fees to my current lender etc . It just seems crazy..unless i am missing something. I really need some help on this one....Thanks
I have a shared ownership problem that i need advice with kinda urgently.
I bought 25% of my property from a housing association. The full value was GBP 209,000.
The place was in a bad state of repair and badly needed modernising...additionally it wasn't even safe..but thats another story! I borrowed money from a friend and took a bank loan to do some extensive renovations..all with the housing associations approval.After the work was completed, I went to my current mortgage lender and asked for additional borrowings to my mortgage. My flat was re valued by them and was now GBP 300,000!
I was looking for the most i could in additional borrowings to repay my loan and friend. It transpired that since my flat has a worth greater than GBP 250,000 i can only borrow up to 70% of the equity in my share. Bit if a bummer but ok....
Still went ahead anyway. The credit check was perfect..all set for funds to be released to me when i get a call from lender telling me that i need a letter from housing association detailing that they have no issues with my having additional borrowings on the property and that the mortgage protection clause supports this.
The Housing trust gave me a letter stating that they have no issues with the additional borrowing but that the mortgage protection clause would not cover the additional borrowing. My lender now cannot proceed!!!
Lots of phone calls later and i still get no where with them. Apparently my only option is to re mortgage with a different lender!! Is this really the only option??!! This was never explained at any stage of the buying process...i do not have it written down anywhere i can see..and i feel really disappointed by the housing trust. Surely the point of the scheme is to help people onto the housing ladder and help improve the quality of home they have. I have basically almost increased the property value by GBP 100k ....they have a 75% share so have done them a HUGE favour and i cannot now repay my home improvments loans through additional borrowing becasue of this stupid mortgage protection clause!! Does anyone know what i can do....???
I feel so cheated and upset by the Housing Association. I cant believe i need to go to the expense and hassle and delay of finding a completely new lender, bearing in mind i have already just paid valuation fees to my current lender etc . It just seems crazy..unless i am missing something. I really need some help on this one....Thanks
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