We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Shared Ownership - Big Mistake?!
K1RST1E_2
Posts: 176 Forumite
Evening All,
I am on the prowl for some advice regarding our shared ownership property. In October 2007, we moved into our home which we had bought on a part-buy part-rent basis from our local Housing Association. The value of the property was £163,000 so our share was £81,500. We put down a 3% deposit which was the minimum we could.
Obviously the house prices then crashed and the value of the property is now £127,000 plummeting our share down to £63,500. At the moment with the interest rates, our rent is more than the mortgage payment. Realistically, we won't be able to move for a long time due to the negative equity we are in so ideally we could use the downturn to our advantage and buy another share, or the other 50%. My question is, would we need to find another deposit to put down on the other 50% with our current mortgage provider? We are with Halifax and I think we would need at least a 5% deposit, which is another £3000. On top of this though, I now have some defaults which will make getting the mortgage approved even harder.
Should I just knock all of this on the head for now??
I am on the prowl for some advice regarding our shared ownership property. In October 2007, we moved into our home which we had bought on a part-buy part-rent basis from our local Housing Association. The value of the property was £163,000 so our share was £81,500. We put down a 3% deposit which was the minimum we could.
Obviously the house prices then crashed and the value of the property is now £127,000 plummeting our share down to £63,500. At the moment with the interest rates, our rent is more than the mortgage payment. Realistically, we won't be able to move for a long time due to the negative equity we are in so ideally we could use the downturn to our advantage and buy another share, or the other 50%. My question is, would we need to find another deposit to put down on the other 50% with our current mortgage provider? We are with Halifax and I think we would need at least a 5% deposit, which is another £3000. On top of this though, I now have some defaults which will make getting the mortgage approved even harder.
Should I just knock all of this on the head for now??
0
Comments
-
Just as a quick side note (and currently looking for a property, possibly through shared ownership), unless you were buying the other 50% I would be cautious as to how much you buy, as I think many (including myself) wouldnt want to buy a shared ownership property which was say an 80/20 split, as I would rather keep trying to save extra to get on the open market.£2 Savers club £0/£150
1p a day £/0 -
The most any bank will lend you on that property is about £114500 assuming a Loan to Value of 90% and 100% ownership. So you could get a further advance of £25500, assuming your present mortgage is £79000. If you can find the other £40000, then it might be doable.
Welcome to negative equity in shared ownership.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
DVardysShadow wrote: »The most any bank will lend you on that property is about £114500 assuming a Loan to Value of 90% and 100% ownership. So you could get a further advance of £25500, assuming your present mortgage is £79000. If you can find the other £40000, then it might be doable.
Welcome to negative equity in shared ownership.
Excellent! I guess I'll be here for another 10 years+ until the house prices increase and I've made a profit on my share. Shared Ownership sucks!
Hmmm, to cut my losses and rent again. I'd be a lot richer!0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 353.9K Banking & Borrowing
- 254.3K Reduce Debt & Boost Income
- 455.2K Spending & Discounts
- 246.9K Work, Benefits & Business
- 603.5K Mortgages, Homes & Bills
- 178.3K Life & Family
- 261K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards