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Please help - What do I own ???
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Pippa.abdn
Posts: 1 Newbie
I have spent two weeks reading and reading threads trying to figure this out but I cant so Im just going to ask outright, please dont think Im stupid I just cant work this out.
Ten years ago I took a mortgage for £32,000 to buy a 50% share of my flat then valued at £64,000 with the other 50% share being owned by the housing assosiastion, I was a single parent and it was my only way of getting on to the ladder at that time.
I have kept up my mortgage payments and have never missed a payment in fact a year ago I started to pay 1/3rd extra every month to get further ahead and to try and pay it off quicker.
Its a 25 year mortgage and I still have 15 years to go.
What I dont understand is how much do I own the flat is currently valued at £150,000 and my most recent mortgage statement (April) shows I have £21,000 still to pay off.
Obviously as I only have a half share the value of what I own is £75,000 but what I dont understand is do the bank own the cash amount I still owe them (£21,000) or do they own two thirds of my half as I have only paid off one third of the amount borrowed ??
I know this may seem really simple but I just dont have a clue and I really want to have an idea of what I have to start looking around with as I am hoping to move on.
Please please advise this totally confused newbie..
Ten years ago I took a mortgage for £32,000 to buy a 50% share of my flat then valued at £64,000 with the other 50% share being owned by the housing assosiastion, I was a single parent and it was my only way of getting on to the ladder at that time.
I have kept up my mortgage payments and have never missed a payment in fact a year ago I started to pay 1/3rd extra every month to get further ahead and to try and pay it off quicker.
Its a 25 year mortgage and I still have 15 years to go.
What I dont understand is how much do I own the flat is currently valued at £150,000 and my most recent mortgage statement (April) shows I have £21,000 still to pay off.
Obviously as I only have a half share the value of what I own is £75,000 but what I dont understand is do the bank own the cash amount I still owe them (£21,000) or do they own two thirds of my half as I have only paid off one third of the amount borrowed ??
I know this may seem really simple but I just dont have a clue and I really want to have an idea of what I have to start looking around with as I am hoping to move on.
Please please advise this totally confused newbie..
0
Comments
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You have an asset worth £75k and have a £21k mortgage.
You own a fixed proportion of the property, 50% and that is currently worth £75,000. You owe the bank a finite amount, currently £21,000.
The level of the mortgage is not linked to the value of the property.
HTHI am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
kingstreet wrote: »You have an asset worth £75k and have a £21k mortgage.
You own a fixed proportion of the property, 50% and that is currently worth £75,000. You owe the bank a finite amount, currently £21,000.
The level of the mortgage is not linked to the value of the property.
HTH
therefore your equity in the property is the difference
£54k (although check the fees on sale etc)0
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