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Can we remortgage to 100% ownership

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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

Comments

  • Mermaid89
    Mermaid89 Posts: 107 Forumite
    Anyone?? Any advice is appreciated
  • mrmajika
    mrmajika Posts: 987 Forumite
    Part of the Furniture 500 Posts Combo Breaker Photogenic
    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?
    Whilst my posts do not constitute financial advice, I am always, without fail, 100% right! :D
  • Mermaid89
    Mermaid89 Posts: 107 Forumite
    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
    mrmajika Posts: 987 Forumite
    Part of the Furniture 500 Posts Combo Breaker Photogenic
    edited 27 March 2018 at 8:56PM
    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.
    Whilst my posts do not constitute financial advice, I am always, without fail, 100% right! :D
  • Mermaid89
    Mermaid89 Posts: 107 Forumite
    Thank you for your reply
  • amnblog
    amnblog Posts: 12,728 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Yes you can Mermaid. Subject to affordability and equity.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • dimbo61
    dimbo61 Posts: 13,727 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    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
    prettyplease Posts: 155 Forumite
    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.
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