Buying back from Co-Ownership

credit_crunch

I purhased my property about 6months ago and bought through co-ownership. I am considering buying back a % seeing as the market is still dropping slightly!

If I try to purchase say 5%, will they do their equity valuation at todays value? I bought my house for £130,000 and I work in an estate agents so I know the value would be around £100,000 to £110,000. I am just wondering if I should take advantage of this slump and buy back a little sooner rather than later?

Any help appreciated!!!

leftieM

You'd need to check the paperwork but I think you carry the equity hit alone. I don't think co-ownership loses money if the house falls in value.

neveranymoney

We bought our first house through co ownership and as far as I can remember, you can only buy either the whole lot off them or in lumps of 12 1/2 %, if you get me!!! We sold right in the middle of the property boom and they made considerably more than what they put in, so I would say, yes, they will use todays valuations.

credit_crunch

I know they have reduced the % you can but back from 12.5% down to 5% which is very helpful.

I am only wanting to know, so that I can set a savings goal for say this time next year! So that I can maybe buy back a chunk or else overpay a lump sum of my mortgage - any recommendations which would be better to do financially?

Or I could be lucky enough that the property boom will happen and I will be able to make a tidy profit - but with working in an estate agents I know the chances of that happening again so soon are about 1 milllion to 1 lol!!!

Thanks for all your helpful responses!