Co-ownership

leemuddywaters

All sounds promising then! We haven't got our application into co-own yet, just moved so waiting on the electoral roll updating, any tips for submitting application?

AWeeCuppaTea

leemuddywaters wrote: »

All sounds promising then! We haven't got our application into co-own yet, just moved so waiting on the electoral roll updating, any tips for submitting application?

Just to take your time with filling it in. Double & triple check you have sent them everything they've asked for. Also send anything you think might help your application, definitely better to give them too much information than not enough.

Mortgage advisor from Ulster Bank called today and my mortgage has been approved, subject to the valuation which was instructed today. I've been on to my solicitors today to make sure they're getting things moving as well!

leemuddywaters

Cheers, think we're gonna use a broker as he sorted out our AIP from the Halifax very quickly and has been doing co-own apps for years, wow great news glad to hear it must feel great

tommie

How does a rise in interest rates affect this and the next part of the purchase?

AWeeCuppaTea

tommie wrote: »

How does a rise in interest rates affect this and the next part of the purchase?

The Co Ownership rent is based on 2.5% of the amount you apply for, however they review this every year, around April time the guy told me, and generally goes up a few quid.

Interest rates rising won't affect mortgage if you are on a fixed rate until the rate ends. I guess for the next part of the purchase if rates have gone up that will be factored into affordability if you want to remortgage, but most mortgage lenders stress test now at 7% anyway.

As for my own application, got the Ulster Bank mortgage offer this week :j

So really it's just a waiting game now with solicitors and agreeing completion dates. Co Ownership offer runs out mid April so we will hopefully be completing some time in March/early April

So exciting

erincc

saverbuyer wrote: »

You realise with coownership you are still renting 50% of the house and paying all the rates and upkeep right?





You are paying coownership's mortgage. At 2.5%.

Good point. Also I hope you never want to buy them out. It cost us 3 times what we owed them. Would not recommended the co ownership route to anyone! It seems good at the start but when you want out its a total rip off.

qwert_yuiop

erincc wrote: »

I hope you never want to buy them out. It cost us 3 times what we owed them. Would not recommended the co ownership route to anyone! It seems good at the start but when you want out its a total rip off.

Yoicks. Could you explain this please?

chrisross22

As house values rise so does the amount you owe. If you buy a house at 50/50 and it costs £100k then a year later it's worth £120k, you now also owe co ownership the 50% of the increased value. I.e. Your 50% share which you owe is now £60k instead of £50k.

Buy them out as quick as you can but easier said than done.

qwert_yuiop

chrisross22 wrote: »

As house values rise so does the amount you owe. If you buy a house at 50/50 and it costs £100k then a year later it's worth £120k, you now also owe co ownership the 50% of the increased value. I.e. Your 50% share which you owe is now £60k instead of £50k.

Buy them out as quick as you can but easier said than done.

What if the value has sunk? Which, as we all know, is far from impossible.

chrisross22

You still owe them the amount you agreed to so in the 50/50 scenario with £100k house when buying but the value drops to £70k, you still owe them
£50k.