Renting out current house and buying another?

leveller2911

assj wrote: »

I'd love to keep the property and buy another (now that
we can) however it looks like the HO may ruin our plan lol. I have my fingers
crossed and unfortunately now have a bill of £210 per hour whilst the property
lawyer looks to take on my case eekkk

Isn't the point of Shared Ownership that it enables people who can't afford to buy 100% of a property to be able to buy a percentage of the property and pay rent on the part they don't own whilst having the right to staircase to 100% ownership in the future?....... But you want to keep the shared ownership and rent it out whilst buying a 2nd property........If you can afford to spend £210 an hour for a property lawyer why not just buy the house outright 100%?.

Shared ownership wasn't designed to allow you to have one ,rent this out and then buy a 2nd property. You actually think the scheme is a "con" because it appears that your not allowed to own 2 properties.....

[Deleted User]

leveller2911 wrote: »

Isn't the point of Shared Ownership that it enables people who can't afford to buy 100% of a property to be able to buy a percentage of the property and pay rent on the part they don't own whilst having the right to staircase to 100% ownership in the future?....... But you want to keep the shared ownership and rent it out whilst buying a 2nd property........If you can afford to spend £210 an hour for a property lawyer why not just buy the house outright 100%?.

Shared ownership wasn't designed to allow you to have one ,rent this out and then buy a 2nd property. You actually think the scheme is a "con" because it appears that your not allowed to own 2 properties.....

Because the remaining percentage will be sold above market value just as the first was - yes we were stupid when we took this on ... that's why.

leveller2911

assj wrote: »

Because the remaining percentage will be sold above market value just as the
first was

- QUOTE]

The property will be valued by 1-2 RICS surveyors. If you don't agree with it you can appeal. Did you appeal the original valuation that you say was overvalued? .

Your posts are contardicting each other. First you say the value of the house has fallen whilst then saying if you staircased to 100% you would pay over the odds . The valuation will be based on a market valuation.

Having said that if you went along and purchased the remainding equity at least you would be in a position to start again and move on. Owning 100% will make it easier to sell that a shared ownership.

[Deleted User]

Ok that seems reasonable, another issue is that I cannot obtain the mortgage for this property in full, it's too expensive and too small for our needs.

I don't agree that it would be easier to sell, there are many for sale next door and around the corner, nobody wants to pay the asking price, because in honesty I wouldn't pay the same again or the price being asked.

Anyway I shouldn't really be talking about this, it's not my thread and I don't want to hijack it, over to OP lol.

gazfocus

I hadn't thought of the HA contract and Mortgage contract linking together but that's a good point.

As I said, I will just have to see what the documentation the HA are sending me with regards to their criteria says. I am going to request permission to sublet until my fixed period on my mortgage is over so I won't have the redemption fee to pay and then will seek to sell the house.

I do understand what you're saying leveller2911, with regards to the whole point of shared ownership properties, however, peoples circumstances change.

In our situation, 18 months ago when I bought our house, I was the only one working, in 2 long term part time jobs, with a fairly low salary. My shared ownership property was literally my limit but I was determined to own a house (or part of one).

Now, we're in a much better position where I am in a full time job and my wife is also in a full time job and we have a joint income of around £38k. We have considered staircasing to 100% but the house isn't going to be suitable for long so it doesn't make sense. Unfortunately, used shared ownership properties in our area don't seem to be selling so we don't seem to have much of an option.

I don't think Shared Ownership is a con assj. An independant surveyor will be responsible for valuing your house and the housing association will want their percentage of the surveyors valuation.

gazfocus

One option for the mortgage advisors amongst you to consider...is this possible:

Staircase our current house to 100% and get a Buy to Let mortgage to cover it, and simultaneously apply for a mortgage to buy a new house?

EDIT: Ignore that, as I would still be faced with a redemption fee if changing to a buy to let mortgage, or even if staircasing to 100%