Help part buy part rent situation!!

skmb1234

me and my partner have lived in our house 2 years now , we have brough 25% and rent 75%.
we want to buy more but its looking like is could cost us a fortune in the long run an the rent could go up , we also have to pay a service charge of £34.90 a month that is due to go up. this is our 1st home that we have brought with having two kids it all sounded grate but now, its not all that grate ....
stay put and pay? or up and move to get 100% morgage ( if possible)???
has any1 had any experiance with these scheams? thanks x

kingstreet

Ok, so you purchased a shared ownership property on a 25%/75% basis.

If you purchase a further share, the rent should go down, although at a revaluation it could be revised upwards if it is allowed in the lease.

The service charges are going to change whatever percentage you own, so that should be a deciding factor in staying or going, not whether to buy more...

The maximum mortgage you can have after staircasing to 100% is 90%, so you'll need to own 10% of the value of the property before you can do this.

How about purchasing a further 25% share? Do you have enough equity to be able to go to 90% of 50%?

By the way, a £35 a month service charge isn't particularly high. You get buildings insurance included in that, which may eat up a fair chunk and you would be paying for that separately if you owned outright.

skmb1234

i hav elooked into the rent matter an they have said this can contiune to go up if need be. we are looking at buyin another 25% so we will then be 50/50 , but we are put off by what we are told. apparelty this is a very expencive way to buy a house and people ask why we dont just move and get a 100% morgage, but its not all that easy with 2 kids, middle class income and no savings. what dose 'Do you have enough equity to be able to go to 90% of 50%?' sorry i am so clueless to all of this.
we are batterling our service charge at the moment as half the serives they are saying it includes, i.e a garden area on the street to be maintaind... we lived her 2 years and never seen any1 here? ...
also when we moved in our solar pannles never worked after many many many calls and people coming out the 1st year, now still not working (never have) they say this is our responsibility to get them fixd,do you no if this is true?
we have had so much go worng with the company we are sharing with its all just 1 big battle . many thanks for the reply x