Selling Shared Ownership Home

Jay1706

Hello. 

Any advice really. I’m very confused. 

Back in 2021 my partner and I (we are still together & planning to move to a rented property). We bought a house on a shared ownership scheme the house was £160,000 in 2021  

We bought the shared ownership scheme at 60% and had a £96,000 mortgage to pay. We have not had our house valued as of yet but online estimating with our postcode it is saying it is £163,000. We have £74,830 left to pay on the mortgage after mortgage payments & deposit.

I’m unsure how to make the calculation of the actual equity we will have after selling & paying off the mortgage and giving what we need to back to the shared ownership scheme. Of course I know fees will be in place also but I just need some sort of calculation to work from. I’m just so confused at how this all works and there are so many conflicting texts online. 

TIA. X

stuartp2000

Hi
As I understand it (I am in Shared Ownership) if you sell for £163k then your share will be 60% of that £97.8k and the 40% will go to the Housing Association.

So ignoring fees and any possible EDP on the mortgage you will have around 23k equity

poseidon1

Jay1706 said:

Hello. 

Any advice really. I’m very confused. 

Back in 2021 my partner and I (we are still together & planning to move to a rented property). We bought a house on a shared ownership scheme the house was £160,000 in 2021  

We bought the shared ownership scheme at 60% and had a £96,000 mortgage to pay. We have not had our house valued as of yet but online estimating with our postcode it is saying it is £163,000. We have £74,830 left to pay on the mortgage after mortgage payments & deposit.

I’m unsure how to make the calculation of the actual equity we will have after selling & paying off the mortgage and giving what we need to back to the shared ownership scheme. Of course I know fees will be in place also but I just need some sort of calculation to work from. I’m just so confused at how this all works and there are so many conflicting texts online. 

TIA. X

60% of the current selling price of the home,  less your outstanding mortgage?
 On your numbers £97,800 - £74,830 = £22,970 equity?

However I am confused when you say £74, 830 is left on your mortgage 'after mortgage payments & deposit'. What does your deposit have to do with what's outstanding on the mortgage?

Does your mortgage statement say you only have £74,830  outstanding? This would mean you would have paid off  capital of  £21,170 from the original £96,000 borrowed in only 3 years. 

Clarify the following;

*What was your deposit
* How much does your lender say is actually outstanding on the mortgage from your last mortgage statement?