shared ownership no equity release

Pfizzy

I own 30% of a shared ownership house currently valued 170k making my portion around 50k equity. It seems to be impossible to release even a small portion of my money. The only way is to sell and as I am a pensioner I would not be able to find anywhere else other than rented accommodation to live which would soon use up the money. Can anyone think of a way out of this predicament? I have been in this house for 21 years and love it. I don't want to move but
I just need to release a small amount to pay off some debts.

RAS

You might be better going over to the renting and selling forum.

zippychick

I've moved this to the right forum for you

Zip

, we move threads if we think they’ll get more help elsewhere (please read the forum rule) so this post/thread has been moved to another board. If you have any questions about this policy please email [EMAIL="forumteam@moneysavingexpert.com"]forumteam@moneysavingexpert.com[/EMAIL].

kingstreet

What do you mean by equity release?

Do you want "OAP" type equity release where the interest is rolled up and the debt is repaid when you die, or are you actually talking about a remortgage which you intend to repay in monthly payments and have repaid in a reasonably short timescale?

You get answers based on the questions you ask. It takes experience to actually question the question and what it means. Many lenders do not have this experience these days, so an Independent Financial Advisor, or whole market mortgage broker with extended permissions for lifetime mortgages may be your best bet.

xylophone

http://www.candidmoney.com/askjustin/747/equity-release-on-shared-ownership-property
http://www.charcol.co.uk/knowledge-resources/ask-the-mortgage-experts/article/equity-release-and-shared-ownership-4776/

A quick google produced the above - have you any other means of paying off the debts?

Pfizzy

Hi Kingstreet,
By equity release I meant that as i have paid my mortgage for the 30% In full I own the 30% (£50k) I wanted to release £10k of that in order to pay everything I owe off and be able to live more comfortably, but the only way seems to sell my lovely home and try to find somewhere to rent.

kingstreet

Do you want the capital and interest to roll up, only being repaid when you die and the property to become owned by the finance provider - equity release, or do you want a mortgage you will repay over the term - a remortgage?

Pfizzy

The interest roll up is where I would pay interest only on the amount borrowed and then when I sell (or die) the amount borrowed would have to be repaid in full?
I am looking for any options at all at the moment, but it seemd that as soon as you say those dreadful words Shared ownership, no one can help? Hope this makes sense?

kingstreet

Pfizzy wrote: »

The interest roll up is where I would pay interest only on the amount borrowed and then when I sell (or die) the amount borrowed would have to be repaid in full?
I am looking for any options at all at the moment, but it seemd that as soon as you say those dreadful words Shared ownership, no one can help? Hope this makes sense?

No. Interest roll-up is where you pay nothing and the total debt is repaid from the sale.

Interest only, you would pay only the interest with the capital repaid from the sale.

Rather than keep asking questions, I believe you may be able to get a mortgage, provided you pay it back, capital & interest, each month so not "equity release" in its usual sense.

Many building societies have low minimum loans, but you may have to borrow £25,001 to get above the Consumer Credit Act limit so it's not a "CCA regulated loan" then repay the amount you didn't need just after completion.

Talk to local building societies near you as they are likely to be more flexible than the big boys. First question to ask them, is do they lend on shared ownership, as many don't.

You are going to have to roll your sleeves up and research. Here's the BSA members' list;-

http://www.bsa.org.uk/the-bsa/members-of-the-bsa/

AnnieO1234

You are probably better off seeing an independent financial advisor and preferably one who deals with elder affairs. You're obviously online so just do some searching.

Xx

kingstreet

AnnieO1234 wrote: »

You are probably better off seeing an independent financial advisor and preferably one who deals with elder affairs. You're obviously online so just do some searching

I suspect the cost of doing so for a £10k loan would be prohibitive, which is why I stopped mentioning it when I found out the loan is that small.