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Paying off a Shared Ownership Mortgage Before Selling.
Mind_Overload
Posts: 120 Forumite
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
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
0
Comments
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What are your reasons for not just leaving it to run, and it being settled from sale proceeds in the usual way?🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
Balance as at 01/09/23 = £115,000.00 Balance as at 31/12/23 = £112,000.00
Balance as at 31/08/24 = £105,400.00 Balance as at 31/12/24 = £102,500.00SOA CALCULATOR (for DFW newbies): SOA Calculatorshe/her1 -
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
I assume I will not pay an ERC if I let it run? it would be low, maybe £150 ish0 -
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.
1 -
Have you looked into the question as to when you sell you would best do so:marcus-darkus said: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
(a). With your shared ownership share standing at 50%(b). Doing a back to back staircasing out and selling at 100%?1
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