How to staircase shared ownership

Tuareg

Just now starting the process to buy a shared ownership property.

Will be buying a 40% share and was wondering what the best way to 'staircase' to 100% was.

I'm assuming that theres a better way than just putting an overpayment into a savings account till theres enough to buy the next share.
Thanks

shonzyd

personally i would save and buy 60% at once if possible. otherwise if you start staircasing i.e 10% a time then if you get to say 80% and decided you want to sell, you may find its harder to sell an 80% share than a 40%.

If i were you i would only go as high as 60% in small chunks then if financial possible go from 60 to 100 in case something did come up and you needed to sell.

Thats just my personal opinion though as you've got the factor in the cost of rent on the share you don't own and weigh up that

thelem

If you get a mortgage that allows overpayments then you'll get a better interest rate by overpaying your mortgage than from almost any savings account, especially if you can get a better rate by having a better loan to value (I'm not sure how that works with a shared ownership though).

pineapple123

I would also get a morgage that allows overpayment this would reduce amount borrowed and thus allowing you to take on more morgage commitment in the future.
By overpaying morgage you not only reduce interest payments on the money borrowed and time back for repayments but it will look favourably to get a second morgage to run along side existing morgage.
I would be wary of purchasing 10% at a time as you have to pay for valuation and changing of paperwork etc that all involves cost.

I have done the above and it works out well enabling me to own the property I live in however I do not think shared ownership is wonderful at all but in todays climate and for some it is the only way to buy a home.