Shared ownership query

Helloadviceplz

Hello, I own 75% of my apartment ( the maximum I could at the start). The total value of the property at point of sale five years ago was £220k I borrowed £170k. The property is now valued at approx £270k. 

I am unsure how to calculate how much I would get if I sold? 

And also, I’m unsure of the process to buy the rest to have 100% of the property and whether this is a better decision. 

I can get more details if needed but any advice for now would be great. 

Many thanks

Bookworm225

you own 75% so will get 75% of the sale figure, which may, or may not, sell for the "value"  270k

to buy the remaining 25% will cost you 25% of whatever the housing association decide is the price they want to sell at.
Note as doing so would take you over 80% ownership you would need to pay stamp duty on that purchase.

gwynlas

Do you know if there have been other sales at 75% as I think it is unlikely that there would be much appeal for a 75% share?

You might attract more viewings  if you should staircase to 100% so that it could be sold on the open market.
It would be worth talking to local EAs before making a decision.

Is the HA a good freeholder and whether service charges are reasonable would be of interest to potential purchasers

Helloadviceplz

Thank you - the HA has charitable status so protected in terms of raising service charges sky high. 

It is a really nice two bed flat in a very popular area (most popular in Liverpool), other flats in the building have sold and made approx 35k profit. 

I checked my mortgage. I borrowed 155k (75%) share, I had 20k deposit and at that time the property was worth 220k. I now have a mortgage balance of 146k. The property is estimated at 270k currently. 

Would this mean buying the 25% would mean I would have to borrow another 100k plus as the value has gone up?

I am so confused as to what is best to do here... the 25% might cost me a lot, but it seems worth while owning 100%. I plan to stay here for another 3-5 years.

Any advice would be very welcome please.

Thanks 

Altior

To staircase you need to get an independent RICS valuation, the HA don't set the price. You pay for that yourself. It's time limited as well, as obviously the market can change quickly. You'll pay whatever 25% of the current independent valuation is (plus costs) if fully staircasing.

You'll need to check the original terms, often there are some restrictions on the property even after you have fully staircased. 

Helloadviceplz

Ok thanks. I guess it’s just a question of whether I can afford to increase mortgage. The rent on the 25% is fairly cheap… 

Bookworm225

Helloadviceplz said:

 The property is estimated at 270k currently. 

Would this mean buying the 25% would mean I would have to borrow another 100k plus as the value has gone up?

you own 75% of the property 
you wish to purchase the remaining 25%
for the sake of this discussion the property is valued at 270
So 270 x 25% = £x (work it out yourself, hint: it is not 100K)

How are you going to fund making a payment of £x ?
if you do not have the cash to pay it with, and so need to borrow it,

Your mortgage is currently 146 so it will rise to total: 146 + £x = £total Y
Will your income support increasing your mortgage to a total borrowing of £Y? Yes or No?
Use your own lender's online mortgage calculator if you want to check if you can afford repayments on a mortgage of £Y

Helloadviceplz

Thank you thats helpful. My HA said there is  £150 fee to staircase and I will have to pay solicitor fees myself. I am hopeful its possible for me to afford as it would be great to own 100% for resale in the future... and no more wasted rent!