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Moving from shared ownership to private ownership
dannyjebb
Posts: 428 Forumite
Hi all,
We currently have a 40% shared ownership apartment. We have just had a little girl and now looking at moving on up to a house. Next door but 1 to us (identical apartment) has just been sold for £137,500 (£55,000 for their 40%) we originally paid £42,600 for 40% and now owe about £40k. Our mortgage fixed period comes to an end in Nov this year and we have been looking at new builds in the area. There is a new development close by that would be perfect for us. It is in the early stages so far 6/150 have been released and sold on the same day. We have been down today to have a chat and the salesperson said she had a lot of names down and it would likely be around Nov/Dec before they could offer us a property (I can't imagine everyone who registers interest is going to actually buy) and as we are currently owners and haven't sold we would be seen as "not proceedible" until we have sold STC. I have rang the mortgage broker who works for Bellway and they have done all the affordability checks and we wouldnt have a problem getting what we would need for the houses we are interested in.
Just wondering if someone would be able to answer a few questions?
1) To sell our current apartment we need to contact the housing association and they will put it out to their currently interested parties. If it isn't sold within 4 weeks we can then go to an estate agents. (Next door but one apparently had a buy from the housing association but it fell through as the association 'forgot' to send a reply letter to the interested party so they got somewhere else. They ended up going to a local estate agents and it was sold within 2 months) If we get the ball rolling next month and someone comes forward to buy within 4 weeks so September time, How long would it be before we paid back the bank? If we pay before 30th Nov then we have to pay the early payment charge plus redemption fee totaling £1015 if we wait until after 30-Nov it would just be the redemption fee of £199. Is it acceptable to wait until 30-Nov to complete the sale?
2) I have just been reading about the savings accounts where the govt give a bonus of 25% for savings towards a deposit for first time buyers. As I am a first time buyer but my OH isn't, would I be able to get one of these ISA and then use the money towards a house that is purchased with someone who isn't a first time buyer?
Many thanks for taking the time to read
We currently have a 40% shared ownership apartment. We have just had a little girl and now looking at moving on up to a house. Next door but 1 to us (identical apartment) has just been sold for £137,500 (£55,000 for their 40%) we originally paid £42,600 for 40% and now owe about £40k. Our mortgage fixed period comes to an end in Nov this year and we have been looking at new builds in the area. There is a new development close by that would be perfect for us. It is in the early stages so far 6/150 have been released and sold on the same day. We have been down today to have a chat and the salesperson said she had a lot of names down and it would likely be around Nov/Dec before they could offer us a property (I can't imagine everyone who registers interest is going to actually buy) and as we are currently owners and haven't sold we would be seen as "not proceedible" until we have sold STC. I have rang the mortgage broker who works for Bellway and they have done all the affordability checks and we wouldnt have a problem getting what we would need for the houses we are interested in.
Just wondering if someone would be able to answer a few questions?
1) To sell our current apartment we need to contact the housing association and they will put it out to their currently interested parties. If it isn't sold within 4 weeks we can then go to an estate agents. (Next door but one apparently had a buy from the housing association but it fell through as the association 'forgot' to send a reply letter to the interested party so they got somewhere else. They ended up going to a local estate agents and it was sold within 2 months) If we get the ball rolling next month and someone comes forward to buy within 4 weeks so September time, How long would it be before we paid back the bank? If we pay before 30th Nov then we have to pay the early payment charge plus redemption fee totaling £1015 if we wait until after 30-Nov it would just be the redemption fee of £199. Is it acceptable to wait until 30-Nov to complete the sale?
2) I have just been reading about the savings accounts where the govt give a bonus of 25% for savings towards a deposit for first time buyers. As I am a first time buyer but my OH isn't, would I be able to get one of these ISA and then use the money towards a house that is purchased with someone who isn't a first time buyer?
Many thanks for taking the time to read
0
Comments
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How can you be classed as a FTB when you keep saying "our" mortgage, "our" property? Is the mortgage and property really just in your OH's name? If you are eligible for a HTB ISA then yes it can be used to jointly purchase a home with someone who isn't a FTB. Will you have saved at least £1,600 in your HTB ISA by Nov/Dec?
https://www.helptobuy.gov.uk/help-to-buy-isa/how-does-it-work/
You'd repay the mortgage when you complete. Whether or not you find a buyer willing to wait until 30th November is another matter. What if the new build is completed mid-November, will the builder hang around until December for you to complete?0 -
How can you be classed as a FTB when you keep saying "our" mortgage, "our" property? Is the mortgage and property really just in your OH's name?
Sorry just habit yes it is officially just in her name. I officially have never owned a house.
I have plenty saved up, from what I have read you can deposit up to 1k on a first deposit and then 200 per month so if I started now I would have 1k initial deposit then £200 in August, Sept, Oct so would reach the required £1600 to get the 400 bonus? Am I right in thinking this would be OK? Can't find if there is a minimum amount of time you need to be saving for?
Spoke with the salesperson today and the development will be over 3 years with them bringing out a few new houses every few weeks. As I said, so far they have released 6 out of 150 total, we just want to be in a position so that as soon as one is released we like then we can go ahead. Ideally it would be nice not to pay to £800 early repayment fee for MY OH mortgage
but if it came to it we would pay it if it meant we had HER apartment sold and we are free to go ahead with buying a new home when it become available
Thanks0 -
It's a minimum amount rather than a minimum time.0
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