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Key Worker: Buy out, sell, no equity..advice needed!
RichieF
Posts: 2 Newbie
Hi, my wife and I need some advice and wondered if anybody can help.
To set the scene, we purchased our house 3 years ago via the key worker scheme for £132K and the housing association put up and own 21% of our house.
We have recently had a baby and would love to move into a 3 bed house.
The trouble is that our house is now only worth £132K and therefore we are unlikely to have any equity.
We are trying to decide what to do and if indeed there are any options available to us. Without any equity and no loan to value mortgages lower than 95% we are in a really difficult position. What is very frustrating is that we both earn fairly well with me being an accountant and my wife a midwife.
We could buy out the housing association, which will at least mean that we fully own our house, but are we missing a trick and is there any other options we could consider?
To set the scene, we purchased our house 3 years ago via the key worker scheme for £132K and the housing association put up and own 21% of our house.
We have recently had a baby and would love to move into a 3 bed house.
The trouble is that our house is now only worth £132K and therefore we are unlikely to have any equity.
We are trying to decide what to do and if indeed there are any options available to us. Without any equity and no loan to value mortgages lower than 95% we are in a really difficult position. What is very frustrating is that we both earn fairly well with me being an accountant and my wife a midwife.
We could buy out the housing association, which will at least mean that we fully own our house, but are we missing a trick and is there any other options we could consider?
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Comments
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How big is your existing mortgage? If you borrowed £132K then you are stuck because unless you have the cash to buy out the HA 21% nobody is going to lend you more than 95% of 79% of £132 market value and on a remortgage you would be lucky even to get 95%.
You just have to sit and wait until prices go back up again.RICHARD WEBSTER
As a retired conveyancing solicitor I believe the information given in the post to be useful assuming any properties concerned are in England/Wales but I accept no liability for it.0 -
We borrowed £105K with the balance now around £100K. The HA essentially gave us the balance as a deposit and when we repay by selling or buying them out we need to give them the same % back0
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Why don't you speak to the housing association about this?No reliance should be placed on the above! Absolutely none, do you hear?0
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Is it absolutely essential that you move to a 3 bed house now? In addition to any equity shortfall you've got the costs of buying, selling, moving ... and the hassle.
Could you not "sit this out"?Warning ..... I'm a peri-menopausal axe-wielding maniac
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