Moving Home with Shared Ownership

supermonkey

I understand there are a few options?

Like sell the property back to the HA, or sell privately etc.

But realistically, it's going to be quite a jump buying a larger house if the 50% share also goes up to 100%!

snugglepet20

My OH's first house was a shared ownership. When we sold it we had to pay for an independent valuation and sell it for exactly that, no more no less. It was annoying because people were actually knocking on our door offering a lot of money for the house and we couldn't sell it to them as they had to be 'approved' by the housing association. So we got less than market value for our share, yet another reason why they are a rubbish idea.... It depends which housing association and what they are prepared to do as well I guess, if you have the money you can buy it all and then just sell it outright.

getmore4less

yes

do you have another question?

Martin81162

I have the option of buying the whole of my property and selling it at the same time.

supermonkey

Realistically, what chance do I have of being able to move:

I bought 50% of £180k house, mortgage stands at 69k. There are 80% shared equity houses nearby (so I'd buy 80% with no rent for 10 years on the remainder) so I'd need £160k mortgage! Am I right in thinking I'd need to earn 50k before even thinking about this?

supermonkey

quick bump!

CloudCuckooLand

£40k may be enough, at a stretch.

Trouble is you'd need to have spare cash to afford the 20% in 10 years...so £50k may be a safer target.

Better to pick a cheaper house and get 100% of it. They are easier to sell on.

supermonkey

Thats a fair answer and what I expected. However a cheaper house would be smaller than what I have now so it'd be easier / cheaper to stay put. The reason for the room is a lack of space. The %20 in 10 years wouldn't be a huge issue, we're good savers and likely to inherit some money in that space of time anyway. The problem is that my income is rather short of £40k and am self employed.

supermonkey

any more thoughts? thanks

supermonkey

Just been thinking about this some more To re-iterate, I bought 50% of £180k house, mortgage stands at 69k. There are 80% shared equity houses nearby (so I'd buy 80% with no rent for 10 years on the remainder) so I'd need £160k mortgage, but that is based on asking price, so I guess if lucky this might be £145k mortgage.

I also wasn't taking into account other income when calculated how much to borrow - eg child benefit & tax credits could raise it a little.

Lastly, is it now near impossible to get a mortgage if self employed without 3 years accounts.