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Staircasing on Shared Ownership & remortgaging questions
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ljs_1985
Posts: 39 Forumite

Hi there
I apologise in advance, my questions may seem silly but i'm struggling to get my head round the whole owning/buying/selling/mortgage thing
I currently have a 40% share in a £180k shared ownership flat so my mortgage was £72,000 of which I paid the minimum 5% deposit of £3,600. I've recently had an estate agent value the property at £280k so i'm weighing up my options of whether to sell it or staircase up to own 100% of it. This question is about me buying 100% of it.
I have to provide the housing association a surveyors valuation report (which I've been advised will probably be less than the estate agents valuation). Whatever the surveyor values the property at i'd then have to pay 60% of that value to the housing association in order to buy the remaining share of the property.
Say the property is valued at £240k, I'd need an additional £144,000 in addition to the £72,000 mortgage I already had. Would I then need a further deposit on the mortgage? Or because i already have a mortgage on the property and this is not a new purchase, would i simply be able to remortgage for a higher amount with no deposit?
I can afford the monthly payments of a higher mortgage but i have no savings really so wouldn't be able to afford to put down another 5% on the additional amount i want to mortgage.
Can someone explain how it all works?
Thanks in advance
I apologise in advance, my questions may seem silly but i'm struggling to get my head round the whole owning/buying/selling/mortgage thing

I currently have a 40% share in a £180k shared ownership flat so my mortgage was £72,000 of which I paid the minimum 5% deposit of £3,600. I've recently had an estate agent value the property at £280k so i'm weighing up my options of whether to sell it or staircase up to own 100% of it. This question is about me buying 100% of it.
I have to provide the housing association a surveyors valuation report (which I've been advised will probably be less than the estate agents valuation). Whatever the surveyor values the property at i'd then have to pay 60% of that value to the housing association in order to buy the remaining share of the property.
Say the property is valued at £240k, I'd need an additional £144,000 in addition to the £72,000 mortgage I already had. Would I then need a further deposit on the mortgage? Or because i already have a mortgage on the property and this is not a new purchase, would i simply be able to remortgage for a higher amount with no deposit?
I can afford the monthly payments of a higher mortgage but i have no savings really so wouldn't be able to afford to put down another 5% on the additional amount i want to mortgage.
Can someone explain how it all works?
Thanks in advance
0
Comments
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Honestly, you're making it sound so complicated when it really isn't.
What's your current mortgage? You said you got it £72k but then said you had a deposit of £3,600, so surely your mortgage was £68,400? What is it now?
If you haven't paid anything on your mortgage, you will want to borrow an additional £144,000. So that, plus current mortgage of £68,400.
So you want to borrow £212,400 on a £240,000. From LTV 89%. What is your income? You would need to be on £40k+.0 -
Ok, so it really is as simple as that? I earn £41k per year, but would potentially be looking at interest only payments on the additional amount as I'd probably look to sell fairly quickly and benefit from 100% of the increase in value rather than only 40% of it.
So if I was looking at a mortgage for the higher amount now I wouldn't need any sort of additional deposit to put down on it? I'm sorry, I know I sound silly but I just don't understand mortgages at all0
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