Should I buy or not? Part ownership

trimmtrab_2

Posted this elsewhere but think this forum may be more relevent.

Hi there, last year I bought a flat on a part ownership basis. I bought 30% what I could afford at the time, but now have just enough to buy (step up) around another 25-30%.

Of course I have to pay another load of solictiors fees but dont have to pay for a survey as I would buy the step up from my present mortgage provider. This would take a good sized portion of the money I have.

Relatives suggest I would be better off waiting til the market improves but surely it's better to buy the portion now whilst it's cheap (Im paying 70% rent anyway which is absolutely dead money). Or would you suggest I save up more over the winter as the market doesn't show many signs of improvement at the moment.

Bit unsure what to do. Please genuine replies, no business calls.

Regards


TT

PasturesNew

How long do you plan to stay there? Having a bigger portion and no cash reserves could make it harder to sell if you had to move out in a hurry as you'd be unable to absorb any additional costs or negative equity, you'd also limit further who could buy it if the portion were larger.

trimmtrab_2

No plans to move anywhere at the mo, it's a place to live in a nice area (Buckinghamshire) firstly then something of value second. Would not be able to buy any alternativves with such a small mortgage anyway. Single bloke so you never know but as it stands looking to stay minimum of 3-4 years, have a half decent job here.

brit1234

Hi, don't stair case instead overpay your mortgage, you will be financially be better off and have better chance to sell later on.

See the last few pages of this thread for why.

https://forums.moneysavingexpert.com/discussion/3177256

trimmtrab_2

brit1234 wrote: »

Hi, don't stair case instead overpay your mortgage, you will be financially be better off and have better chance to sell later on.

See the last few pages of this thread for why.

https://forums.moneysavingexpert.com/discussion/3177256

Thanks for the reply: 'overpay your mortgage' what exactly does this mean? Sorry if I seem naive but all this is very new to me.

Also how do I get a mortgage so I can pay off 100%.

PS The thread makes excellent reading, you really do need to be an expert of law, accountancy and even sociology to know all the ins and outs!:eek:

trimmtrab_2

Looked at my mortgage, it says I can't overpay my mortgage. Do you have any other suggestions or ideas that I could investigate?

brit1234

Who is the mortgage with?

It may be worth putting some money into a high interest bank account and moving lender when time to remortgage. Then plough all that extra money into reducing the mortgage.

It would be worrying if it was common in shared ownership mortgages that you couldn't overpay.:think:

By stair casing it reduces the pool of buyers available for it. It also increases your exposure to price falls.

trimmtrab_2

Called Leeds BS today, turns out I can overpay however there are penalties: 4% of each transaction. Why do you advise I wait until moving lender to start paying off, shouldn't I just start immediately?