Any advice on stair-casing shared ownership - bromford living

Adele92

Il try keep it short as possible. Bought a 3 bed terraced house 50% shared ownership 2 years ago. Total house price was worth 210k so we bought half for 105k with rent currently £230 per month. So currently our mortgage is at 75k - so I'm guessing we have about 30k equity in the house. I currently have 20k in savings (from saving and an inheritance). So all together I've got a 50k deposit. Looked at halifax mortgage calculator and it says we can borrow up to £145k. With our equity/deposit this would mean we have 195k - property is worth 210k. Currently paying £440 on mortgage and£230 rent = 670 a month. With a new mortgage of 145k the mortgage would go up to £600 a month - not sure what rent on the property - I'm guessing about £70.

Anyway I just want to know;
-had anyone ever staircased
-Bromford Living say the house is worth 210k - though houses round here sell for about £205-7k
-if we wanted to buy 100% of property would they negotiate price like a normal sale??

kingstreet

Bromford will insist you pay for a surveyor to value the property.

The value may be higher than your lender's surveyor's value, which may result in you "paying over the odds" to staircase.

The rent is 2.75% of the unowned share, so if you don't staircase to 100%, you could be left paying a higher proportionate rent anyway as you are revaluing the property/rent at the same time.

You may have a stamp duty liability.

You are likely to find a remortgage to a new lender at this time gets you a better deal that returning to your existing lender. A broker would help with comparisons.