Staircasing and existing equity?

Material_Girl_2

I am contemplating buying more shares in my shared ownership property. I've not started any serious research yet but thought I'd come here first for some general advice:)

I have no real idea yet regarding current value of my property but a quick look on Zoopla seems to suggest that my place has gone up slightly in value.

I'm looking at mortgage calculators right now and wondered if my existing equity would count towards the amount I can borrow?

My thinking is that further shares may be more expensive to buy but on the same hand the equity in my existing share should have gone up and the mortgage lender may be prepared to lend more based on this new value? Is my thinking along the right lines or am I way off?

prettyplease

Im in the same position and from what I understand you seem to have a fair grasp of it. I currently own 50% and am buying the rest. My flat appears to have gone up £16000 in value so thats £8000 equity for me and £8000 extra I need to pay.

Material_Girl_2

Is your mortgage provider prepared to lend you more money based on the higher valuation of your exisiting share?

prettyplease

Nope!!
My mortgage lender is KRBS and they will only give me a full ownership mortgage for above £250,000 or £300,000 - cant remember which but Im sure it has to do with the fact they want me off my 1.5% interest rate - oh well!!!
I have a mortgage AIP from first direct who I bank with - I wanted an AIP before I apply for full ownweship as my leaseholder needs a fee of £240 for the valuation.

boxjcb

I was in a similar position. I have managed to staircase by 20% with minimal change to my combined rent and mortgage. This was due to a strong LTV% (loan to value) and a lower interest mortgage. Try using a shared ownership staircasing calculator to give you an idea of your options.