Shared Ownership remortgage nightmare

Lucylu1977

So we currently own 50 % of our house and wanted to staircase to 75 %.

The house is valued at £245,000 and with £103,000 remaining on the mortgage, it means us having to raise £8000 to put down as current mortgage provider is a 85 % ltv.

We don't have that much capital and are feeling a bit hard done by. We naively didn't think that we would have to put such a large some down. We can stretch to 7k so could do a 90 % ltv but all the big lenders seem to be 85 %.

To complicate things further we only have 7 years left on the lease so we are faced with either having to see by then or do a lease extension (costly).

I am really struggling to 'adult' with this one and decide what best to do.

Do we stay as we are at 50 % and save, save save or sell up now ? Or does anyone have experience of a 90 % ltv lender.

So many things to think about. Any advice would be welcome.

Thanks 😁

csgohan4

Can I clarify you only have 7 years lease?? how long have you had the house for??


You will find it hard to sell it with a 7year lease

haras_nosirrah

I am a shared ownership specialist and have been recommended by a housing association for the last 10 yrs. There are a number of lenders who do 90% and some of them are big name high street.

haras_nosirrah

Although I am assuming the 7 yr lease is a typo otherwise you do have problems (did you mean 70?)

HampshireH

Does the HA have the lease and therefore 7 years and you an underlease for the 50% shared ownership

Would the HA not need to extend the main lease before allowing a lease extension of yours?

I'm not completely up on shared ownership leaseholds but what my limited readings the above sounds like it could fit your situation.

Whereby only on staircasing to 100% would you have the main lease.

What does your lease say?

Lucylu1977

Sorry guys yes it was a typo. Should have read 77 years. I am aware that won't get a mortgage with it under 70 so time is of the essence.

I am gobsmacked that we can't afford this. If we were to sell then we could buy somewhere else for £260,000 with our affordability and equity yet we can't even afford to buy more of our own house!

haras_nosirrah

Hi Lucy. As mentioned there are lenders doing 90% on staircasing. I can't name names without doing a fact find due to forum rules but there may well be options for you. Just because your existing lender requires a 15% deposit doesn't mean the lenders are all the same. I did 3 staircasing applications at 90% last month

Lucylu1977

That's great. Thank you very much. I will carry on searching then.😁