Buying 100% of shared ownership property or not

Jalamac

My husband and I bought 40% (60k) of shared ownership 2-bed property in 2006. We had a young family and this was all we could afford at the time. Over the past couple of years, we have been able to overpay on our mortgage in an attempt to bring our overall mortgage debt down (40k outstanding). The rent has steadily increased over the years.
Now our children are getting bigger and want rooms of their own, the house is too small.
I'm considering buying the remaining 60% of the property and getting a loft conversion to increase the space available (we could afford this) and either remaining there or selling it on at a small profit. We can't afford to buy a 3-bed house where we are (South east) but if we bought our current house and made it bigger and repaired it then we could perhaps afford to move to an area where we like. Currently we are out of catchment for the high school of choice and my kids friends all live a car-ride away so we just want to be closer to them.
Any suggestions?
I should add that my husband has an anxiety of taking on a bigger mortgage (but happy to keep paying rent forever) but he's also happy to live in a cramped, cluttered house with a tiny garden while the rest of us just want to get out. We are both 42 and in public sector jobs.
I would really appreciate any suggestions on what to do. Many thanks.

Pixie5740

You need to talk with your husband and come to an agreement on how to move forward. Personally, I think you are right, buying the remaining 60% makes sense.

1) If house prices are increasing it will be cheaper to buy 60% now than further down the line.

2) It gives you options. Not only to convert the loft but selling a property you own 100% will give you a bigger market than selling 40% of a property.

Edit: How do the repayments of a mortgage for the whole property compare with the mortgage repayments of 40% of the property and rent? What is your husband's plan for retirement? Could you afford to continue paying rent for the 60% you don't own?

AdrianC

Jalamac wrote: »

I'm considering buying the remaining 60% of the property and getting a loft conversion to increase the space available (we could afford this)

You won't be buying the place freehold, you'll be buying it leasehold. Does the lease allow you to extend it like that?