Want to remortgage

gemmacantan1

Hi,

We bought our house four years ago with the help of the housing association. This was before the government stepped in and helped! They gave us 25% to buy a property on the open market and we bought a small 2 bedroom house. Our mortgage is currently £100k approx. We remortgaged two years ago and it took 6 months to complete because the housing association would not play ball and were making things extremely complicated. Unfortunately at the time we weren't in a position to purchase their 25% (wish we had in hindsight).

We are looking to remortgage again but this time purchase their 25% share as now we are in the financial position to do so but I can't afford for it to take 6 months this time. Our house has lost value. Its worth roughly what we bought it for so we can't really complain about that but I'm not sure if with the way things are that its even possible for us to remortgage. We don't have any equity in our property and have a small deposit of about 5% (we are saving).

Is anyone in the same situation? We don't have to remortgage and buy our share but we have work we wish to do to the house and we don't think the housing association should be entitled to the profit should there be any!

Any advice would be great

Thanks

Gemma

TEDDYRUKSPIN

My question Gemma is how you are going to pay for the 25% cash to buy out the housing association???????

From what I can gather with the limitless information your house purchase was 75% mortgage, and 25% shared ownership? Therefore 100% mortgage???????

gemmacantan1

We also offered a 5% deposit ourselves at the time so it wasn't 100% on our half. I was hoping that we could get 10% together this time and use that as a deposit to get a bigger mortage or do we need equity in our house to buy our share? I really don't know much about it so please excuse my lack of detail.

TEDDYRUKSPIN

Ok. The only factor now is the house price. You need to get a whole mortgage process going and get a valuation done on the property as soon as possible. You will be looking for companies who will accept a 90% LTV.

Now this is a tricky situation as you are basically going blind until valuation is done with the company you choose.

You will need to go window shopping or use a financial advisor who will do the hard work for you.

Unfortunately, it will be a rather slow................process as the documents to buy out the muppets from your housing association will be slow. You will also need to get a solicitor as well. So more money...

Conrad

remo might be possible. I did one like this recently and the borrower was granted 90% of the value today and the H/A accepted 25% of the reduced value as payment to clear their charge.

It was ruddy complex, for a start some lenders class this as a purchase and not a remortgage so I've come accross people who were strung along by lenders (Halifax was one) for 3 months only to be told at the last, they needed to reapply on a purchase basis, which meant no free legal fees etc.

From the start just expect problems and then you wont be dissapointed.

gemmacantan1

Thanks for the advice!

After the last time I expect there to be delays. Its kind of why I wanted to get in there early and short it out and I actually do believe that because we're buying our share that its classed as a purchase. I checked last time when we remortgaged.

I wanted to do it all last time but we used this ruddy stupid mortgage advisor and she was crap! I was doing most of her work for her and she was recommended! The solicitors held it up to but unfortunately I was stupid and went on her recommendation of a solicitor they used regularly. Next time I'm using my local one so I can hassle them at least once a week!

But you're right about the H/A they take 10 days to approve each little bit of information! I allowed four months last time and it took six months! I have learnt from my past mistakes!

TEDDYRUKSPIN

LOL.

Gemma. Correct to get the ball moving. It will take 3 weeks for the housing association to send you that figure and the paper work to buy the 25% off them.

Conrad is correct. Many advisors have done this. It is a pain and sloww............................. but as long as everything gets a tick you are fine.

Now for the apprentice tonight. Brill. Which idiot will get knocked out tonight! LOL. Lorraine..................mystic meg.