Can we remortgage to 100% ownership

Mermaid89

Hi all
I'm thinking ahead of time here but buying 50% share on a new build. When it comes to remortgage are we able to staircase to 100% at the same time providing the valuation is done and the repayments are affordable? I'm assuming we would use whatever equity we have at that time as the deposit?

No sure how it works so any advice welcome

Mermaid89

Anyone?? Any advice is appreciated

mrmajika

I think the lack of replies is due to it not being clear what you're looking to do. Is this a help to buy scheme?

Mermaid89

No. We will own 50% in a shared equity scheme so my question is when it comes to remortgage can we staircase to 100% ownership at that time?

mrmajika

Ah, right, I understand.

I suppose for that to happen 2 conditions will need to be met.

(1) You'll need to have the affordability and income to undertake a mortgage at that level.
(2) You'll need to check the terms of the shared equity scheme to confirm the 'buy out' conditions.

I'm no expert, but my understanding of the schemes (when I checked many many years ago) was that you needed to partake in the shared equity for a certain period of time. Thereafter you could buy out the remaining part with the same % added growth of the current value.

For example if the total house price was £200k on a 50% equity share, if at the point of remortgage the house was worth £220k, you'd need to pay £110k to buy out the remaining share.

Mermaid89

Thank you for your reply

amnblog

Yes you can Mermaid. Subject to affordability and equity.

dimbo61

Please read the terms and conditions very carefully.
Some only allow you to buy 75% or 90%
Will you be paying a mortgage and rent on the other 50% ?
Can you afford to overpay the mortgage each month to build up equity

prettyplease

I had shared ownership for 5 years before staircasing to 100%.
In my situation there was a clause preventing staircasing for 2 years.
Read the lease terms.