What to do?

Jani9

We moved into our new build 2 bed semi detached house in 2011 on a shared ownership deal.

We pay £300 per month on our 30% mortgage and pay rent on the other 70% at £300 also.

Our 3 year fixed mortgage deal comes to an end in July 2014 and want to make a decision on what to do.

I'm thinking I either look to buy the rest of the 70% so I'm paying the mortgage on the whole house or move altogether. I'm assuming I can do this?

I'm wondering if our new build will ever increase in value due to it being a new build though?

I should have £20,000 saved by July so could get a mortgage on a new house where it would be 100% ours.

Just not sure if I should stay or go to benefit me long term, any thoughts would be much appreciated.

Jani9

Anyone?

Just really wondering if new builds tend to increase in value or hold firm generally so I know whether to consider buying the rest of the house or whether it will more beneficial to move?

ACG

They usually decrease in value for a while, then start to increase. have a look at house prices in your local area on rightmove to get an idea of what will happen.

Jani9

ACG wrote: »

They usually decrease in value for a while, then start to increase. have a look at house prices in your local area on rightmove to get an idea of what will happen.

I've had a look already and nothing has sold recently that would be comparable to our house.

ValHaller

Unless you are under pressure to move, I suggest taking your ownership to 100%. Newbuilds tend to decrease in value as ACG says before they increase. If you sell at 3 years you will have taken all of the hit on value and if you add the costs of moving, you'll just throw money away, because you will probably end up with a high LTV on the next property. Wait until you can move with a LTV of 85% or less.

kingstreet

What's the stamp duty situation?

Did you make a market value election at purchase, as if not, when you staircase past 80% stamp duty will be payable if the property value is over the threshold.

You should be careful with staircasing. In some areas, a SO property is best left like that, as you may end up pricing out of the range of the type of buyer the area/property may attract on smaller shares.

Jani9

The house was £165,000 so we'll be ok in terms of stamp duty I think.

I know what you're saying in terms of buying the full 100% and struggling later on to sell, get a good value.

This is what made me think of moving as I've got £20,000 as a deposit.

Thing is we have no problems where we are, very quiet and a nice area.

dimbo61

If you like your house then save the costs of selling and buying and stay where you are.
Now what happens after the end of your fix?
If you read all the paperwork about buying the other 70% you can check what the T&C,s are !
It will be easier to sell 100% of a property rather than 30%
How much extra will it cost to buy the 70% if you use the £20K as an overpayment?
Have you managed to save the £20K over the last 3 years ?
If so can you afford a larger mortgage every month ?
If it was me I would now look at a good long term fix or offset fix for say 5 years IF!!!!! you have no plans to move in the next 5/7 years.