We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Shared Ownership - Staircase?
Michelle2014
Posts: 81 Forumite
We currently have a 50% share in a flat in London - full original price was £191,000 and now worth approx £260,000.
We are considering whether to buy an additional 25% of the property to reduce the amount of rent we are paying. As things stand the mortgage element costs us less than the rent. This would then mean us owning 75%. I need to check with the Housing Association if buying an additional 25% share will mean our rent payment is halved.
I guess I am wondering if in the future we want to sell if this would make the flat less attractive as future buyers would have to be able to afford to get a mortgage on the 75%.
Views welcome on this proposal.
We are considering whether to buy an additional 25% of the property to reduce the amount of rent we are paying. As things stand the mortgage element costs us less than the rent. This would then mean us owning 75%. I need to check with the Housing Association if buying an additional 25% share will mean our rent payment is halved.
I guess I am wondering if in the future we want to sell if this would make the flat less attractive as future buyers would have to be able to afford to get a mortgage on the 75%.
Views welcome on this proposal.
0
Comments
-
so you think that 75% is currently "worth" £195,000
a possible answer to your question would therefore be what else is on the market in your area for £195,000?
That is what you will be competing with, and at least some people would never touch SO with a bargepole if they can buy better, so what can you get for £200k in your locale and how does it compare to your flat?
as for whether 75% limits your market as you well know anyone looking at SO has to be able to afford the rent on top of the mortgage so has the same issues as you. That said of course the closer you are to 100% the fewer people would want SO since they might be able to stretch to 100% of a real property - if there are such in your locale and mentioned above!0 -
so you think that 75% is currently "worth" £195,000
a possible answer to your question would therefore be what else is on the market in your area for £195,000?
That is what you will be competing with, and at least some people would never touch SO with a bargepole if they can buy better, so what can you get for £200k in your locale and how does it compare to your flat?
as for whether 75% limits your market as you well know anyone looking at SO has to be able to afford the rent on top of the mortgage so has the same issues as you. That said of course the closer you are to 100% the fewer people would want SO since they might be able to stretch to 100% of a real property - if there are such in your locale and mentioned above!
You might if you are lucky be able to get a studio flat in this area for £190k, but this is a large 2 bed flat. 2 bed flats in this area vary from £250k to £300k.
There is a 2 bed flat up for sale for £260k in this block hence that gives me a rough price of what our flat is worth.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.5K Banking & Borrowing
- 253.7K Reduce Debt & Boost Income
- 454.4K Spending & Discounts
- 245.5K Work, Benefits & Business
- 601.4K Mortgages, Homes & Bills
- 177.6K Life & Family
- 259.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards