First time mover (sort off)

krankie_frankie

I bought a 50% share in a shared ownership one bedroom flat around 14 years ago for £44,000.
A few years later I bought a further 25% share for £32000 (price of the property had gone up, the catch with shared ownership properties is when you buy further shares you pay the current market value price!)

I tried to buy the remaining 25% a couple years back the bank wouldn't lend me enough, we were around £10,000 short of what I needed to borrow. So I gave up on the idea and resigned myself to the fact I would only own 75% off my flat.

However roll forward to 2015 and I am now married and have a 6 month daughter and my small one bedroom flat really is a small one bedroom flat.

My wife doesn't work currently, although she is looking. It is difficult as I work shift work which includes nights and different days each week.

We really want to move to a two bedroom home, but really have no idea how to go about it. Ideally we want to stay in our current area. But my flat is approximately valued at £150,000. I know back in April I owed just over £61,000 still on my mortgage and the housing association take 1% off the selling price, so when it sells, I will get 74% off £150,000.
This is where I sort of get stuck, what happens next.......? Am I right in saying the bank takes their share off wht is left off my mortgage then what is left is mine? So say I have £50,000 left...... Can I then apply for a mortgage again. (According to the online calculator they will lend me £140,000)( but currently with mortgage payments coming out, only £40,000)

Hopefully you will understand what I am rambling on about, I really need advice as we really need to move before the baby gets to big. If anything I can now buy the last 25% share so I own the whole flat, but to be honest I don't want to pay out on solicitors and other fees when we will hopefully move soon.


Thanks for reading.

silvercar

You get 74% of £150,000 = £111,000. You pay off the mortgage of say £60k. That leaves you with £51,000 as a deposit for your next place.

If you can get a mortgage of £140k, you could buy a property for £191k.

I've assumed you have money set aside for selling costs, legals and moving costs etc. and also assumed you get the full price of your place etc.

Forget buying the remaining share of your current property. You may find restrictions on selling your current place as it is shared ownership, so check that out.

krankie_frankie

Yes we have money set aside for moving costs, or we can get it easily enough.

With shared ownership property, they only take the asking price.... unless it doesn't sell within 6 months, which is very rare for shared ownership properties.

Guess I will need to make an appointment with the bank to see what they will actually lend me. the online calculator is ok, but I need to hear it from them what they will actually lend me.