Shared Ownership - Selling

chloe_87_87

Hello,

I have a 35% shared ownership property I purchased 6.5 years ago and I am potentially looking to sell and buy a bigger place elsewhere, possibly shared ownership again if needs be.

I had a chat with a mortgage advisor today and they worked out what I could take away from my sale to use as my next deposit and it sounds far too good to be true.

What calculation should I be using to work it out? 

I don't have the exact value of my property right now as it isn't up for sale just yet however I know the value of the property below mine (exactly the same also S/O) that sold a month ago and what the value of mine was 2 years ago when I looked into it then. 

Any help greatfully received! 

gazfocus

You will likely need the housing association to send a surveyor to come and value the property (which you’ll have to pay for). The housing association will then want 65% of that valuation regardless of what end up selling for (ie if you accept a lower offer, that discount comes out of your 35% share and not the housing associations share). 

eddddy

You'll get 35% of the value of the sale, minus your outstanding mortgage,

So using some made-up numbers...

• Lets say your property is valued at (and sells for) £300k and you have £50k mortgage left to pay off.

• So you'd get 35% of the £300k = £105k

• You'd then have to pay off the rest of your mortgage (£50k) from that £105k

• So you'd be left with £55k - as a deposit for your new property

So take that £55k, and add on whatever new mortgage you borrow, and add on any savings you want to put in - and that will tell you how much you can spend on a new property.

(But there will be a bunch of fees and costs for moving house that you'd need to pay for as well.)