Shared Ownership dilemma

chris344

I purchased 40% of a shared ownership property in Central London two years ago. The value was £325k.

We have recently been looking into our options, the HA recently valued the flat at £365k however, two local estate agents valued it at £650k (looking at properties current sold, this seems to be what they are selling for, I have a substantial private terraced).

To buy 100%, based on my joint income we could achieve a mortgage for £338k, this is what is required for the 100% ownership. I would need to borrow the stamp duty and legal fees from my father who has agreed, how does this work? Same gift conditions as a mortgage gift?

Based on the two estate valuations, I would like to stair case to 100% and then sell within a year. The HA state if sold within 6 months, they'll require a small %, after 6 months I'm free.

The question is, when looking at mortgages, will the lenders consider the estate agents valuation or the HAs?

If they consider the estate agents valuation I am applicable for better deals.

Can someone help clear this up please?

kingstreet

Lenders take their surveyor's valuation, or the purchase price, whichever is the lower.

The EA valuations are not a factor.

chris344

Thanks for your reply.

What about the snap duty fees, I will be borrowing these fees from my family or a friend.

dimbo61

Did you pay any stamp duty when you bought the 40% of the property?
How much it will now cost you to buy the other 60% depends on what you signed up for!
You will have to wait and see how much the property is now worth.
Difficult to sell 40% of a property so I hope you can afford to buy the rest

chris344

I didn't pay any stamp duty so if I buy 100% then I'll have to pay 3%.

My 40% share is worth £146k and I owe £118k on the mortgage. To buy 100% I will need to a mortgage of £338k. My joint income is £100k a year.