Bovis Jumpstart - Help needed!

halps

Hi,

My fiancee and I bought a Bovis House via their Jumpstartscheme in July 2009 and are now considering our options.

We bought the house for £199,995 (Mortgage 75%/Bovis 25%Shared Equity) – the house is now valued at approx £240,000 (Our neighbourspaid £250,000 in 2008 for exactly the same property)

We have 10 years from 2009 inwhich to pay off Bovis the balance which is based on the market value of our atthat time. Alternatively we can sell our house at any time within this 10 yearperiod and take the 75% of the value of the property at that time.

For the first five years (until July 2014) there is no rentor interest to pay on the Bovis share of 25% and for the second five yearsthere is an annual interest rate fixed at just 3%, payable monthly, on theoriginal sum provided by Bovis Homes (i.e. 25% of the purchase price).

As far as we can see we now have the following options:-

1)Sell the house before July 2014 and give Bovis25% of the sale price

2)Re-mortgage for the 100% of the current houseprice before July 2014 and pay off Bovis their 25% share and stay living there

3)Continueliving in the house as we are and after July 2014 start paying an annualinterest rate of 3% to Bovis

What does everyone think would be our best option?

Anyhelp/guidance would be much appreciated!!

kingstreet

Do you want to move house?

Will the mortgage rate be higher or lower than the rate you'll pay the builder?

BTW, you can remortgage for enough to repay the existing mortgage and equity loan, if you have sufficient equity, but not to "100% of the current houseprice."

You would appear to need about 83% of the value of the property to do so, with an approximate mortgage rate of 3.5% to 4% per annum, depending on lender/product choice.

halps

Thanks for the reply, we want to move house but we are getting married in July so we are not sure whether we want to go through the hassle of moving house before we get married.

We haven't looked in to the exact rate that we can get yet (still weighing up the pro's and cons of each option) but we take your point here.

How do you calculate the LTV amount required to be 83%?

Thanks again for your help.

tigsly

Have a look here on the HSBC Calculator if you put in different figures- it will work out the loan to term value (so add your property value, your deposit value.. say your doing any type of mortgae..and for any length of time - and on the next page it will tell you your LTV)...

I really like the HSBC calculators - they show you the impact of overpayment - even £10 a month can save you 100's..

tigsly

By my reconing - if you owed 199,000 that would be around 83% LTV

that said, are you sure your property is worth teh higher fee.. I thought new builds depriciated in value... so a 'new build' that sold in 2008 or 9 would not neccesiarily indicate what a house is worth now?