Shared Ownership Staircaising

Hilser · 3 July 2015 at 7:17AM

Hi - I bought a 25% share of a property 14 years ago. At the time the flat was valued at £60k so my quarter share mortgage was only £15k which is now paid off in full.

I would now like to get a mortgage for the remaining 75% share to avoid paying rent monthly to the housing association. The flat is now valued at £180k. Am I correct in thinking I would need a new, separate mortgage for £135k.

Apologies if this is a silly question, the whole shared ownership is very confusing!

Thank you :-)

haras_nosirrah · 3 July 2015 at 7:19AM

Hi. I do a lot of staircasing applications and you are correct that you would need to get a mortgage for the rest of the property you are buying. Your existing equity is your deposit

Hilser · 3 July 2015 at 7:24AM

Thank you. So do I need to get a mortgage for the full £180k using my quarter share as deposit which does take it down to the £135k based on my calculations? I thought I already own this share in full and would get the mortgage for the £135k with a separate deposit. Is it possible to do this and keep my paid quarter share completely separate if that makes sense?

Thanks!

haras_nosirrah · 3 July 2015 at 7:29AM

Hi. You will own 100% of the house so no need to keep the shares separate

If the whole house is 180k and you are buying 75% then you need a mortgage of 135k minus any additional deposit you want to put it. You don't have to put down any extra deposit as your 25% is your deposit but you can put down more if you choose. Don't forget your staircasing costs which will probably include some stamp duty