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Should I buy my shared ownership flat?
mattcafc
Posts: 64 Forumite
Hi,
I need some advice on whether to go ahead and purchase my shared ownership flat.
At the moment I have a mortgage on a 25% share - the value of the property is £180k. I've lived there for 5 years now.
I'm now in a position where I can get a mortgage for the whole 100% of the property.
The main downside I can see, is that we will always need to pay the service charge - which is around £80-£100 a month. This may be an issue when we want to move - 10 years or so.
Any advice on whether to go ahead with the purchase or not?
I need some advice on whether to go ahead and purchase my shared ownership flat.
At the moment I have a mortgage on a 25% share - the value of the property is £180k. I've lived there for 5 years now.
I'm now in a position where I can get a mortgage for the whole 100% of the property.
The main downside I can see, is that we will always need to pay the service charge - which is around £80-£100 a month. This may be an issue when we want to move - 10 years or so.
Any advice on whether to go ahead with the purchase or not?
0
Comments
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You'd have to pay rent on 75% still AND all the repairs.0
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A leasehold flat will always have service charges. Only you can decide if staircasing makes sense for you, both in the short, or long term.
What's the market like for shared ownership in your area? Will it be easier to sell if you own 100%? How long are you planning to stay there? What are the costs of staircasing?
You need to ask yourself these questions.I 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 -
He's talking about staircasing upto 100%.poppysarah wrote: »You'd have to pay rent on 75% still AND all the repairs.
SO rent would end, but service charges and ground rent would continue.I 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: »A leasehold flat will always have service charges. Only you can decide if staircasing makes sense for you, both in the short, or long term.
What's the market like for shared ownership in your area? Will it be easier to sell if you own 100%? How long are you planning to stay there? What are the costs of staircasing?
You need to ask yourself these questions.
The market is ok, we live in a good area, but isn't the sale just a normal sale + servicecharge. So once we have 100% is no longer called a shared ownership (I may be wrong?)
I think it's a good idea, due to the fact we can't save the 40k deposit we would need for a house, but we have a good regular income to pay for them mortgage monthly0 -
Yes. If you purchase the remaining share, it's no longer shared ownership. The question is, would the property sell more easily as it is, shared ownership, or if you staircase upto 100% ownership?I 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
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poppysarah wrote: »You'd have to pay rent on 75% still AND all the repairs.
We won't have to pay rent. We already have to pay for all the repairs0 -
How much do you owe your present mortgage lender?
Remember that a lender will only lend up to its maximum (85%, 90%?) of the total value (£180K) and this amount will include the amount you already owe.RICHARD WEBSTER
As a retired conveyancing solicitor I believe the information given in the post to be useful assuming any properties concerned are in England/Wales but I accept no liability for it.0 -
We owe around 25k. We also paid £10k deposit on the place.
We also could put down another 10k now if needed.0 -
If you owe around £25K and can put in £10K then that would be an extra mortgage of £125K making a total of £150K - 83.33% LTV and therefore doable, provided you have the income to support it- if I am wrong, I'm sure Kingstreet will tell us!RICHARD WEBSTER
As a retired conveyancing solicitor I believe the information given in the post to be useful assuming any properties concerned are in England/Wales but I accept no liability for it.0 -
It sounds fine to me.
The question, as I mentioned earlier, is is it sensible to do it and is it sensible to do it now?
Local conditions are going to determine the answers to that.I 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
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