Shared Ownership Equity...?

villa2010

Hi Folks,

I have recently bought a shared Ownership property with my partner (I know a lot of people are anti these schemes). I thought I would seek some advice from all the witty, intellects that surf this delightful website...!:money:

Basically we have a 25% in the property which we bought in March. I was wandering how we go about buying another 10-15 % share. Is it likely to be a case of : -

- If you want to increase your share to 50% you have to out another deposit down on the 25%?

- You just rearrange your mortgage payments in proportion to the percent you want to borrow

- Something else...?:money

How some can offer some advice it would be appreciated.

Many thanks

Thrugelmir

With the majority of schemes you are able to buy a larger %.

This will require you to raise "cash".

The 2 options are to save in a deposit account or overpay your current mortgage (if this is allowed). Overpaying your mortgage will save you more interest than you'll your earn.

By overpaying your mortgage you can then remortgage at a later date to release additional funds to acquire the increased share.

Which ever option you choose. Expect it it to be a long term commitment.

villa2010

Thrugelmir wrote: »

With the majority of schemes you are able to buy a larger %.

This will require you to raise "cash".

The 2 options are to save in a deposit account or overpay your current mortgage (if this is allowed). Overpaying your mortgage will save you more interest than you'll your earn.

By overpaying your mortgage you can then remortgage at a later date to release additional funds to acquire the increased share.

Which ever option you choose. Expect it it to be a long term commitment.

Many thanks for the quick response = Legend..!

So if we wanted to buy another 25% which would = £42 500. We Would have to put another 15%deposit down on the £ 42 500. (Or overpay the mortgage) ...?

opinions4u

villa2010 wrote: »

Many thanks for the quick response = Legend..!

So if we wanted to buy another 25% which would = £42 500. We Would have to put another 15%deposit down on the £ 42 500. (Or overpay the mortgage) ...?

Assuming house prices remain steady and lender requirements stay the same.

Falling property values could cause you problems because you'd need to reintroduce equity to your original stake.

New legal fees and valuation costs each time you buy a new share too.

villa2010

Would you recommended overpaying the mortgage as I am pretty sure you can up to £ 500 per month.

If we re payed £1200 extra per year, how much more equity would we be able to buy?

villa2010

I basically have a disposable income of £200 per month after everything has been paid for.

Am I better of:

- putting this into my ISA where I can have easy access if I need it.
- Overpay the Mortgage with it.
- Half and Half.

Any advice is welcome...!