Shared Ownership - buying 100%?

W1gster

Hi all, hoping for some advice on buying 100% of a shared-ownership property.

My partner owns 25% of a 2 bed flat in the docklands, London and I also own (mortgaged, not S/O) a 2 bed flat outside of London that is worth around the same as hers is on the open market (~£250k).

Despite the general problems she's experienced with shared ownership (extremely poor service, '2nd class citizen' status etc) we'd like to continue to live in the S/O property; so, what I'd like to do is sell my place (taking a slight negative-equity hit in the process) and use that mortgage to buy the remaining 75% or preferably 100% and get rid of the shared ownership mortgage.

Now I understand that this is 'affordable housing' and what I'm proposing doesn't necessarily fit that profile, however, we are unable to buy anything similar in this location (where we work) that's not on a shared-ownership basis (so by my definition that would qualify as making housing affordable ).

There must be restrictions on this (much like the ones for qualifying for these schemes originally) - does anyone know what they are? Has anyone been in this situation?

Another option is to simply sell my place (or rent it out but I know the rental income wouldn't cover the mortgage) and just assist my partner in buying more and more shares. Has anyone staircased to 100% and has it been worth it?

Many thanks in advance.

mynameisdave

Some schemes will never allow you to purchase 100%. You need to find out exactly what scheme the property is registered under. Presumably the developer, or the management company can provide this info if it has not already been given to your partner when they bought.

W1gster

Yep already checked - this particular one does allow staircasing to 100%.

Has anyone else done this? How have you found the process? Has it been worthwhile?

Has anyone with a S/O place had their personal circumstances change:

e.g. a salary increase or a partner moving in, thus significantly increasing the household income?

Has this had any impact on you living in the shared ownership property (i.e. no longer satisfying the original terms of qualifcation for affordable housing?)?

Have you tried to increase your shares as a result?

We will speak to the HA in question, but be good to get a feel or find out how others have got on in this scenario.

Many thanks

Thumper7

Hi W1gster

I own a s/o flat that I now own 100% of. I am in Scotland so that things might be different.

I found the process relatively easy, in the first instance you need to speak to the HA and they will arrange a survey of the property.

1991 property valued at 49000, discounted to 47000. I bought 25% - 11750 IO + Endowment

2003 after payrises etc decided to bite the bullet and buy the rest I really could have afforded to buy earlier but was enjoying myself.

I wrote to my HA and they arranged for the Land Valuer to value the property. They valued the property at 64000. This was the valuation that the HA had to abide by 75% - 48000.

I spoke to a financial advisor who organised a mortgage for me, 11750 + 48000 = 59750 repayment. I did have to have an independent survey arranged for mortgage purposes (valued at 70000).