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Shared Ownership Property - should we buy the remainder?
towser007
Posts: 1 Newbie
Hi guys,
First post, so hi!
I'm after some advice as to what to do next regarding our shared ownership property and whether we should bite the bullet and buy the remainder of the property.
We are first time property owners and in june '06 we decided to take the plunge and buy.
Due to our level of debt (and the area we live in) we decided that the best course of action would be to find a shared ownership property.
We found a house and got a Woolwich 2 year fixed rate mortgage for half the value of the property. The amount we borrowed was £82.5k - obviously this puts the value of the house at £165k (in june '06). The amount we pay each month is around £465 per month. One other thing to note is that we are doing a repayment mortgage.
The fixed rate is 4.69% and this rate will expire in june '08.
We pay rent to a housing association - to the value of £195 per month.
We have started a family since we have moved in and while there is a second bedroom it is very small - just big enough for a cot! So when we try for a second things are going to get a little bit cramped to say the least.
so we're not thinking we will be in the house much longer - certainly no more than 2 or 3 more years.
Is it worth buying the remainder even if we are only going to be in it for a few more years before finding somewhere a bit bigger? Or do you think we should use the money we are saving each month to put towards a deposit on a bigger property when we decide to upgrade?
At the moment, due to our debt repayments and other commitments we have around £450 per month to save - when we stick to our budget :rolleyes:
So... in a nutshell I'm after some advice as to whether you guys think we should buy the other half of the property. This would mean remortgaging and increasing our monthly outgoings, but then we would own the whole property and have more contrl over who we sell it to - part of the deal with the shared ownership is that we can only sell it to people who meet the criteria which will cut down a big portion of people we can sell it to.
I think I have covered everything... :-)
Anyway, thanks for getting to the end of this :-D and hopefully someone will be able to point me in the right direction.
First post, so hi!
I'm after some advice as to what to do next regarding our shared ownership property and whether we should bite the bullet and buy the remainder of the property.
We are first time property owners and in june '06 we decided to take the plunge and buy.
Due to our level of debt (and the area we live in) we decided that the best course of action would be to find a shared ownership property.
We found a house and got a Woolwich 2 year fixed rate mortgage for half the value of the property. The amount we borrowed was £82.5k - obviously this puts the value of the house at £165k (in june '06). The amount we pay each month is around £465 per month. One other thing to note is that we are doing a repayment mortgage.
The fixed rate is 4.69% and this rate will expire in june '08.
We pay rent to a housing association - to the value of £195 per month.
We have started a family since we have moved in and while there is a second bedroom it is very small - just big enough for a cot! So when we try for a second things are going to get a little bit cramped to say the least.
so we're not thinking we will be in the house much longer - certainly no more than 2 or 3 more years.
Is it worth buying the remainder even if we are only going to be in it for a few more years before finding somewhere a bit bigger? Or do you think we should use the money we are saving each month to put towards a deposit on a bigger property when we decide to upgrade?
At the moment, due to our debt repayments and other commitments we have around £450 per month to save - when we stick to our budget :rolleyes:
So... in a nutshell I'm after some advice as to whether you guys think we should buy the other half of the property. This would mean remortgaging and increasing our monthly outgoings, but then we would own the whole property and have more contrl over who we sell it to - part of the deal with the shared ownership is that we can only sell it to people who meet the criteria which will cut down a big portion of people we can sell it to.
I think I have covered everything... :-)
Anyway, thanks for getting to the end of this :-D and hopefully someone will be able to point me in the right direction.
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