Shared Ownership help

nickwilks7

Hi all, I am just after some help/advice regarding my house I bought 8/9 years ago through Plumlife help to buy scheme (shared ownership)

So I bought my house for £117,600 through this scheme, getting a mortgage for my share (75%) for £88,000 and the other 25% split between the council (12.5% @ £14,700) and my mortgage provider (12.5% @ £14,700)

I've now got a balance on my mortgage of around £82,000

I'm now looking into selling this house and renting a bigger place from my father in-law

My issue is, what happens when I sell as my house is valued at £100,000 which means I get £75,000, but this doesn't cover my remaining balance of £82,000. I also don't have the £14,700 to pay back the loan from the mortgage provider which they put down as my deposit.
I'm very confused to be honest 🤔

Any help would be great as I've never sold a house before and don't really know what to do!

Thanks
Nick

AnotherJoe

Well it looks like you are screwed because you are in significant negative equity.

Where did you buy this house where house prices have dropped so much over the past eight or nine years ?

I don't know what happens with the council and mortgage providers equity, either they also take a proportionate hit or they have first claim leaving you with an even bigger debt.

None of your options are pretty. Get a whacking big debt you'll have to come to an agreement with the lenders, perhaps go bust, perhaps stick it out there and wait until values rise which may be who knows how long, get a lodger in to help pay down the mortgage ...... You probably need to sort this out with someone at perhaps citizens advice if you can afford private financial help.

nickwilks7

The council equity will also take a hit, but the mortgage providers equity stays at £14,700 no matter what I think

Another option is renting it out to my brother for a bit and his rent can cover the mortgage payments, then in a couple of years I might have some equity once I sell it.

Starting to regret getting into this help to buy scheme 🙁

poppy10_2

nickwilks7 wrote: »

Starting to regret getting into this help to buy scheme 🙁

Another victim to add to the list, sadly

https://forums.moneysavingexpert.com/discussion/3177256

nickwilks7

poppy10 wrote: »

Another victim to add to the list, sadly

https://forums.moneysavingexpert.com/discussion/3177256

To be fair, the scheme was great at the time, it managed me to get a house in the village I've been brought up in, whereas without the scheme there would of been no chance!

It's just I was maxed out on my mortgage, so therefore couldn't do a savings plan which they recommend, so you can pay back the £14,700 at the end.

If I was to move house, would I be able to add the £14,700 onto the new mortgage I get??
And I add on the negative equity to the new mortgage as well??

Confused 😩