Need to move, but no equity or deposit

Jvic28

Ha Ha! You will not get me down! Lol! I'll find a way somehow. I don't think the shared equity is going to have that much of an impact on the situation really. If anything it may help, I know there are over 200 people on the waiting list for my type of property in the area and if I can sell through the HA I won't have to pay estate agent fees. But thanks for the contribution anyway.

_Andy_

Jvic28 wrote: »

When did I say that?

You didn't have to explicitly state it, it was quite apparent from your attitude.

kingstreet

What you are trying to do is impossible, I'm afraid. When you move house you can often move the rate from the old mortgage to a new one. That's the concept of portability.

To be able to do that, you need to be able to qualify for a new mortgage first. That means satisfying the lenders loan to value requirements, lending criteria and affordability guidelines. You cannot transfer a mortgage from one property to another.

Selling a shared equity property means you have to be able to sell at a sufficient value to repay your mortgage and the second charge provided by Homebuy or the developer. In one way this is helpful because you are selling the whole property, not just a share, but the downside is you're limited in what you can accept for the property.

I believe your best option is to try to sell if you can cover your mortgage and the second charge. Rent somewhere more convenient and try to get rid of your debts.

_Andy_

kingstreet wrote: »

What you are trying to do is impossible, I'm afraid.

The OP has said you're not allowed to make negative responses in this thread. Shame on you

Jvic28

Again Andy, where have I said that? Just trying to keep the thread positive as I need solutions.

Thanks Kingstreet for clarifying the concept of portability, I can see by your explanation that I will not be able to move the mortgage to a new property.

With regards to the shared equity, when I sell, I only have to give the HA 30% of the sale price (and the other 70% would go towards repaying my mortgage) Obviously I need to make sure this is at least what I paid for it as I had 100% mortgage, this is probably going to be the stumbling point. I have a feeling I may be holding onto the property for a while yet to acheive that.

Once hat price is acheivable I think I'm going to look to rent or stay with family and save a deposit/repay debts.

kingstreet

_Andy_ wrote: »

The OP has said you're not allowed to make negative responses in this thread. Shame on you

Yeah. But I'm nice about it and not all "boo-hiss" like some of the pantomime stuff you get from time to time...

I just wish I got a pound for every time I correct a misconception about portability on here.

kingstreet

Jvic28 wrote: »

With regards to the shared equity, when I sell, I only have to give the HA 30% of the sale price

Is it 30% with a minimum of the amount you originally "borrowed" or is it a simple 30% of the sale price?

I've known some SE deals where the developer is protected against property value falls by a clause which gets them 30% or the original loan whichever is the higher.

Jvic28

Thanks, I really had no understanding of portability well alone a misconception! Lol!

I wish it didn't bloomin work like that. Have had a poor run of luck lately and would love to move my little boy to a bigger home where we can be settled with family around us but looks like if I ever get rid of this place I'll be renting for a while.....unless a win the lottery or a rich unknown relative dies and leaves me a load of cash!

Jvic28

kingstreet wrote: »

Is it 30% with a minimum of the amount you originally "borrowed" or is it a simple 30% of the sale price?

I've known some SE deals where the developer is protected against property value falls by a clause which gets them 30% or the original loan whichever is the higher.

No, it's simply 30% of the sale price, which I liked as although we both benefit if it goes up in price we also both share the brunt of it if it goes down.

I have to get it valued by a chartered surveyor (who only valued it at a £100 overall loss in October) and then the HA have 6 weeks to find a buyer at the price given by the surveyor. After that time I can put it on the open market if I wish.

kingstreet

It's probably the most misunderstood issue we get on here. A lot of people think they have a mortgage which can be transferred from property to property. I'm not sure why, although I suspect lenders spend very little time explaining what it is and how it works.

Hope it works out for you, whatever you do.