Buy or sell - Shared ownership dilema ?

Jazzmaster

Hi, I am looking for advice:

I own 60% of a S/O property; I have a nice flat, but, I am paying over a grand in mortgage and rent. I bought my share 3 years ago with a 100% mortgage.

I would like to get rid of the rent/get out of shared ownership.

but, if I move, my 60% share will not give me enough money to buy a decent sized flat, or a good location, compared with where I am now.

I am thinking of staircasing to 80%, with a veiw to 100% in a couple of years (this would be financially hard for a few years, but, other than cost I am happy with the flat ).

If there is going to be a property crash (in 2006), I would be sorted, as I could then buy the rented 40% share cheaper.

So, shall I stay as I am hoping for a crash which may never come, or buy more shares and risk negative equity, or shall I get out of S/O now and lose the size/location ?

Any answers !!?

Jazz

zag2me

Ahhh, the downside of shared ownership!! Its only really good for getting you on the base of the ladder. Try and increase your share when you feel comforable to and finances allow it, not before. I wouldnt bet on a houseprice crash, or a house price rise!! Thats the nature of the current market.

mummytofour

Yes, I know this one only too well.... it sucks! The first thing I would do is to get the valuation done with the H/A remember they are a law unto themselves and you have no choice but sell for the price the valuer says. On the upside depending on the valuation then you may find that the price is cheaper to buy than you think. My H/A will only allow stair caseing three times, So this is worth checking out.

I understand fully what you mean about wanting to get out of S/O, you will prob find that if you do decide to sell you flat that you will sell very quickly as there is a high demand for S/O.

If you do decide to move on and are finding it expensive have you looked at moving to a slightly diff area? We are currently looking about 20 miles from here due to the prices being cheaper.

Now for the what should you do question.... IMHO IF I could get our of shared ownership I would!
S/O is never really yours, just the hassel.

Good luck

Vxx

Jazzmaster

Interesting that you feel that there is a high demand for S/O at the moment. I hope you are right; I am a little concerned that if I staircase, maybe 80% is not so attractive to a prospective buyer.

So, I guess I should stop thinking of the market, and go with the best deal for myself, which, as I can't afford to move at the moment, is to staircase...

Thanks to you both

mummytofour

Yes, there is demand for S/O here at least, its pretty much the only way anybody can get on the ladder!

Good luck
Vxx