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Shared ownership purchase outright
Cheryl2022
Posts: 41 Forumite
Hi
does anybody know how it works to purchase a shared ownership property outright? I have a share of my house and want to buy it outright but do I change mortgage provider and just apply for a normal mortgage and pay my shared ownership mortgage off on completion? Thanks
does anybody know how it works to purchase a shared ownership property outright? I have a share of my house and want to buy it outright but do I change mortgage provider and just apply for a normal mortgage and pay my shared ownership mortgage off on completion? Thanks
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Comments
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Sort of, yes. The transaction is a purchase of the remaining share of your property.1
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Thanks. So my current shared ownership mortgage is with Leeds building society so can I go with a different provider and pay that off on completion? It's so confusing 🫤
house is worth 220k, my share worth 55k, I owe 23k0 -
The process of increasing your owned share is called staircasing - presumably you have already checked that you are allowed to staircase to 100% ownership? Bear in mind also that you may have stamp duty to pay if the current valuation of the property is higher than the 0% band at the time you buy too - depending on how you elected to deal with stamp duty when you purchased your original share.🎉 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 = £102,500.00
£100k barrier broken 1/4/25SOA CALCULATOR (for DFW newbies): SOA Calculatorshe/her1 -
Hi,
yes I've checked I can buy the full 100%, the house is valued at 220k so I don't think stamp duty will apply.
i just don't no if I just apply for a normal mortgage now and then pay my shared ownership mortgage balance of 23k off on completion0 -
You’ll need to see a solicitor to deal with the staircasing - it may be easiest to return to the solicitor who you used for the purchase as they are presumably a shared ownership specialist - obviously assuming you were happy with them and they are still in business. There is more paperwork involved than just taking a new mortgage out.🎉 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 = £102,500.00
£100k barrier broken 1/4/25SOA CALCULATOR (for DFW newbies): SOA Calculatorshe/her0 -
It's so much more complicated and I can't get my head round it, can I use my 32k equity as a deposit for the full purchase?0
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The equity is not too relevant, you're purchasing the remaining 75%, 220K * 0.75 = £165K
Additional borrowing or mortgage for £165K.
I staircased through the existing lender, so it was treated as additional borrowing.
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I'd need to change lender so don't no how it would work. I need a 10% deposit for the new mortgage so was hoping I could use the equity for that?0
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Seems to me that it will be more complex if it's possible to clear the existing mortgage and finance the purchase of the 75% via an unconnected lender. Need to be careful around ERC as well, assuming you're currently in a fixed rate.0
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Doubt you'll need a deposit, however it's a specialist case so one for a broker most likely.0
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