FTBI Initiative - Advice Needed

cheryl_bannister_to_be

I have a rather tricky and complex situation with a Homebuy (First Time Buyer Initiative) property, that myself and my ex boyfriend own.

We bought a new build property (2 bed coach house/ semi detached house above garages) back in 2007 for £240k (our share £120K).

The Homebuy scheme that we are on works in the following way;

- My ex and I own 50% of the equity in the property and the Government (or Housing Association) own the other 50%.
- Gov Loan Interest Payment - On the anniversary of the 3rd Year (October 2010) since the purchase we then had to pay the government 1% of their share (120K) per annum which equates to around £100 per month, this goes up to 2% in October 2011 and then again to 3% in October 2012. The fees then remain at 3%.
- We also have the option to staircase (increase our share of the property/buying more of the property off the Government) in 10% increments at the current market value. In which would reduce our monthly Gov Loan Interest Payments.

The things that make this complicated:

- The person I bought the property with is now my ex boyfriend, who no longer lives at the property and no longer wants a share in the property. He is paying for a property that he does not live in.
- I am recently engaged and am looking to get married next March 2012
- The property value has gone down to £210Kish
- I would like to move with my fianc! to a house, out of the area that I am in, that has a garden.
- I have a fixed rate mortgage that cannot be increased.

I am looking for a solution that would mean the least financial damage to all parties concerned and would like to avoid this Gov Loan Interest Payment increase or at least have a plan by October this year.

I would ideally like some advice on what options might be available to us as I am so confused with it all… if any one has any experience of the scheme or has been in a simular situation..

Thanks

Orpheo

I'm afraid I can't give you advice. My views on shared equity are not welcome here, they're negative, you see. But I'll bump your thread in the hope that someone can give you some advice. Maybe one of the champions of shared equity can help you and explain to you why shared equity wasn't a mistake.