Staircasing on Shared Ownership & remortgaging questions

ljs_1985

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

Lokolo

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+.

ljs_1985

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 all