Shared Owndership - Advice

Foxy994

Hi There,

I currently own 75% of a shared ownership flat and plan to buy the remainder shortly but also borrowing additional funds to consolidate my debts and a few home improvements. In total, I would like to borrow £55,000

My mortgage is currently with the Abbey (one of only a few who give mortgages for shared ownership). My question is: Would I need to stick with Abbey as I am buy part of a shared ownership or would I be able to approach any lender as I would then own the property outright.

Any advice would be appreciated.

Tracy x

Ben1982

Hi,

Not sure whether you've been given wrong information about lenders, but I know of at least 3 that do accept Shared Ownership: KRBS, Woolwich, and Halifax. But yes, you should be able to approach any of them. As the complication is only really with the %age share.

One thing to note.... Check the Terms of your lease... I know with mine, I am not allowed to put additional borrowing onto the Mortgage (and the Housing association needs to see (and approve) a Redemption statement, and your new Mortgage offer).

Foxy994

Thank you for your reply. I will certainly check my T & Cs, although (forgive me if I am being totally thick) I don't see why I wouldn't be allowed additional borrowing if the Housing Association would have nothing more to do with the flat if they have sold it to me.

Thanks again x

Bargain_Rzl

I'm not sure that Ben is right. I think that as you are staircasing to 100% you should be able to approach any lender as you will then own the property outright and it will no longer be subject to the restrictions that some lenders impose.

Similarly, assuming it's a straightforward shared ownership deal whereby the HA ceases to have anything to do with your home once you've staircased to 100%, this should mean they can no longer restrict what other borrowing you may wish to secure against your home.