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Paying off a Shared Ownership Mortgage Before Selling.

I'm planning to put my shared ownership flat on the market soon, and move in with a family member for a few months, so I can get out of leasehold/shared ownership and a possible messy chain.

I have a 50% share, currently around £7,000 left to pay, I will make a 10% overpayment in January, and can afford to pay the rest off soon after - Early repayment charge will be under £200, and £225 to close the mortgage down.

I want to avoid a messy chain as looking to move up North, far from London, I want to get out of leasehold and into a freehold house eventually.

Is it worth paying my mortgage off before I sell? what are the advantages, disadvantages? or is this not really much to think about.

Many thanks

Comments

  • What are your reasons for not just leaving it to run, and it being settled from sale proceeds in the usual way? 
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  • marcus-darkus
    marcus-darkus Posts: 99
    First Anniversary Combo Breaker First Post
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    edited 24 November 2023 at 9:52PM
    I honestly don't know, I think it just stems from planning to pay it off next year even if I didn't sell. Maybe I wanted the feeling of being mortgage free on a 50% mortgage :neutral:

    I assume I will not pay an ERC if I let it run? it would be low, maybe £150 ish
  • gwynlas
    gwynlas Posts: 1,622
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    Whether you pay it off is up to you if it feels good do it and it means that you get all of the sale price minus fees.

  • SDLT_Geek
    SDLT_Geek Posts: 2,429
    First Anniversary First Post Name Dropper
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    I'm planning to put my shared ownership flat on the market soon, and move in with a family member for a few months, so I can get out of leasehold/shared ownership and a possible messy chain.

    I have a 50% share, currently around £7,000 left to pay, I will make a 10% overpayment in January, and can afford to pay the rest off soon after - Early repayment charge will be under £200, and £225 to close the mortgage down.

    I want to avoid a messy chain as looking to move up North, far from London, I want to get out of leasehold and into a freehold house eventually.

    Is it worth paying my mortgage off before I sell? what are the advantages, disadvantages? or is this not really much to think about.

    Many thanks
    Have you looked into the question as to when you sell you would best do so:

    (a). With your shared ownership share standing at 50%

    (b). Doing a back to back staircasing out and selling at 100%?
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