HELP - Shared Ownership Negative Equity

KeepOnKnitting

I am somewhat curious. Do you need to sell or move right now? Because if so I think I would just sell up rather than rent out. My reasoning is this:

Option 1 - Sell up now for £60k. Give £30k to HA. Give £30k to mortgage company. Pay off £15k neg equity over a year.

Option 2 - Rent out. Subsidise property at £4,200 per year (indefinitely?). Say 5 years pass and you sell for £100k. Give £50k to HA. Possibly only owe £40k on mortgage, so you get £10k. You would still be down by the amount of the monthly subsidy over this time, or the best part of £10k plus repairs and maintenance over 5 years of tenancy. Do you think it could go up £40k in 5 years?

If my figures are off, substitute in ones that are more accurate.

Leggitte

It might be worse. Depending on the HA, they might want 50% of the original value of the house, which is 50% of £120,000, meaning the whole sales amount will go to the HA. Check the lease agreement. HA's usually do not want to lose money when house prices go down.