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Remortgaging to clear equity share
kitch
Posts: 20 Forumite
Hello everyone. I hope you are well.
I did a little search, but I doubt anyone has posted about this very specific situation before.
I purchased a new build 10 years ago and used an equity share service that the house builder provided. We're now at the stage where we need to pay the value to clear the equity share. I understood the basics when I signed up, but now it's time to pay things seem a little more complicated.
Firstly, the house builders have asked me to pay them £250 for a valuation and they will instruct someone to do that. My concern at this point is that there may be some over inflating done in terms of the valuation to increase the value we need to pay back to them (potentially in cahoots with the valuation company). The 'small print' says that if I am not happy with the valuation (and therefore the value I need to pay the builder) I have to foot the bill for ANOTHER valuation. I'm sure everyone is very aware of the cost of living issues we're all having so I'd rather not throw money away!
Secondly, they have suggested I involve a solicitor. Again, this will come at a cost that I'd rather not have, but I don't fully understand the need for the solicitor. Is it not just a case of we pay them the money and they give us some documentation and/or a receipt confirming the value is now clear?
With regards to the mortgage I currently have, it's coming to the end of it's fixed term very soon to the point where I will go onto the SVR, which is a big increase compared to the current rate I have. I'm concerned that the discussions with the house builder and then the application for the remortgage will take us past the point when the fixed term ends and I'll be spending more on the monthly mortgage payments (unnecessarily) until the new deal is in place. What I did think of last night though was is it possible to switch to a new deal with our current mortgage supplier where there is no ERC (most likely a tracker mortgage) and then switch one or two months down the line to a fixed deal which would include the funds to then pay the house builder?
Sorry, there is a lot in here, but it's a good opportunity to empty my brain of it all.
Thank you.
Kitch.
I did a little search, but I doubt anyone has posted about this very specific situation before.
I purchased a new build 10 years ago and used an equity share service that the house builder provided. We're now at the stage where we need to pay the value to clear the equity share. I understood the basics when I signed up, but now it's time to pay things seem a little more complicated.
Firstly, the house builders have asked me to pay them £250 for a valuation and they will instruct someone to do that. My concern at this point is that there may be some over inflating done in terms of the valuation to increase the value we need to pay back to them (potentially in cahoots with the valuation company). The 'small print' says that if I am not happy with the valuation (and therefore the value I need to pay the builder) I have to foot the bill for ANOTHER valuation. I'm sure everyone is very aware of the cost of living issues we're all having so I'd rather not throw money away!
Secondly, they have suggested I involve a solicitor. Again, this will come at a cost that I'd rather not have, but I don't fully understand the need for the solicitor. Is it not just a case of we pay them the money and they give us some documentation and/or a receipt confirming the value is now clear?
With regards to the mortgage I currently have, it's coming to the end of it's fixed term very soon to the point where I will go onto the SVR, which is a big increase compared to the current rate I have. I'm concerned that the discussions with the house builder and then the application for the remortgage will take us past the point when the fixed term ends and I'll be spending more on the monthly mortgage payments (unnecessarily) until the new deal is in place. What I did think of last night though was is it possible to switch to a new deal with our current mortgage supplier where there is no ERC (most likely a tracker mortgage) and then switch one or two months down the line to a fixed deal which would include the funds to then pay the house builder?
Sorry, there is a lot in here, but it's a good opportunity to empty my brain of it all.
Thank you.
Kitch.
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