Shared ownership staircasing help & financial advisor/solicitor advice please

Richard_Webster

If you sell and you owe more than the mortgage then you have to find the difference.

If your lender repossesses, provided it hasn't loaned you more than 100% of the price at the time the Housing Association effectively stands the loss as the lender is allowed under a "mortgagee protection clause" in t he lease to buy in the remaining percentage for the difference between the value of the 100% and the amount owed to the lender on the lesser percentage. It then sells the 100% on the open market back to back with its purchase.

HARSA

Mine is pretty much like yours and yes you can buy the whole lot (freehold)whenever you can afford to do so. The valuation cost of £120 to an independent valuer is pretty much what you have to pay.Although I wouldn't staircase simply for the reason that someone on the HA will find my place more affordable to buy my share at a much higher rate than I paid for it. Well I hope that will be the case when I come to sell it as long as property prices don't fall that much. Again this will be relative as the new property I buy will suffer the same faith.

My plan is slightly more ambitious than yours as I want to buy a much bigger property for over £300k in the same village.Just like you I live in a really cool part of the country - it has been a very good place for my whole family to live.

lauraza

I am currently in a very similar situation and considering staircasing at some point; I cannot decide it is best to a) make overpayments on my mortgage OR 2) to invest the money I would have otherwise have used to make overpayments, for some equity to staircase at a later stage.

HARSA

lauraza wrote: »

I am currently in a very similar situation and considering staircasing at some point; I cannot decide it is best to a) make overpayments on my mortgage OR 2) to invest the money I would have otherwise have used to make overpayments, for some equity to staircase at a later stage.

Well I have now changed my mind and decided to buy the extra 50%

Here is the thread I started asking for advice

https://forums.moneysavingexpert.com/discussion/3717443

but people stayed away because they couldn't be bothered to read such a long post :mad: lol

Anyway I have done the math and it's better to buy the whole lot more so if the valuation comes back lower. Meaning that I can buy the other 50% cheaper.

The BB society valuer is coming on this Wednesday to value the property and the HA appointed valuer (independent) turns up next week so it will be interested to compare the two reports. I am just hoping that both value the property much less than £160K.

I will keep you posted.