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Buying out a shared equity
AlunJ
Posts: 7 Forumite
Hello, A few years back I bought a Bovis Home on their jumpstart scheme, I know now what a pitfall shared equity is and should never have done it but I did and now I'm learning!
At the time the property was £116995 and I bought a 75% share.
The scheme says that in the event of sale Bovis take their 25% share regardless whether in profit or at a loss with no penalty.
I've been trying to sell the property but am struggling, two neighbouring properties recently sold in the region of 90-95k and as I personally still owe 79k on my mortgage I would still owe quite an amount if I could even sell at such a loss.
I've been told it's therefore possible to cheaply buy the builder out whilst the market has slumped, is this true and where would I start.
Ideally I would be looking to get onto a buy to let mortgage and rent it out.
Any advice is greatly appreciated!
At the time the property was £116995 and I bought a 75% share.
The scheme says that in the event of sale Bovis take their 25% share regardless whether in profit or at a loss with no penalty.
I've been trying to sell the property but am struggling, two neighbouring properties recently sold in the region of 90-95k and as I personally still owe 79k on my mortgage I would still owe quite an amount if I could even sell at such a loss.
I've been told it's therefore possible to cheaply buy the builder out whilst the market has slumped, is this true and where would I start.
Ideally I would be looking to get onto a buy to let mortgage and rent it out.
Any advice is greatly appreciated!
0
Comments
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You won't get a buy to let mortgage for more than 75%, so your plan appears flawed.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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