Confused on deposit cost on shared ownership undervalued survey? Help needed!

Mjl11

Deleted post now

Carrot007

My advice. Don't do it. Never a good option. Worse when you have to sell unless you have 100% by then. And if you don;t expect to a horribly bad idea.

whitepatch

It is uncommon for a new build to be down valued, can you switch lender to get a new valuation done?

It is unlikely the housing association will accept a lower purchase price. Have you spoken to them?

If they did accept a lower price, you would have to pay the difference in valuation to purchase price (35% of it)

whitepatch

Carrot007 wrote: »

My advice. Don't do it. Never a good option. Worse when you have to sell unless you have 100% by then. And if you don;t expect to a horribly bad idea.

I disagree, for some they are the only way to live in a house.

I am selling my shared ownership property, it didn't even go on the market and I had a buyer. This was 2 days after i had decided to sell. They are extremely popular!

amnblog

Price originally 35% of £310,000 = £108,500

Deposit originally 5% of 108,500 = £5,425

Since the property valued at £290,000, for any purchase price from £290,000 to £310,000 the Lender will only advance 95% of your share of the value.

35% of £290,000 value = £101,500

95% of £101,500 = £96,425

Therefore if you buy at £300,000, and the builder wants £105,000 for a 35% share.

You need to find as deposit every pound from £96,425 to the £105,000 purchase price of your share. £8,575 in this case.

scd3scd4

I purchased my house 25 years ago under shared ownership. Nearly all paid for now.
£58 000 now worth about £375 000


My daughter has just purchased a £300 000 flat in London. No way she could have got a mortgage on her own. She has 50% share. Its not a perfect system but it can and does work.


My daughters was also a second shared ownership. Meaning the sellers were part owners. It had only been on the market days.