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What percentage to buy?
Hey just after some advice.
35, live with parents. Currently salary £28,100. Tend to come out with about £1,900 after tax/insurance each month. Salary sacrifice 7% into pension.
I have seen an upside down house with wrap around garden, 25% share for £56,250.
I plan to put in a £22,000 deposit for mortgage.
I will also have £5,000 in additional savings. In addition to this £1,000 in a First Direct 7% yearly saver and £800 in an index fund.
My main question is, should I buy 25% or more? The landlord is L&Q and I know they have strict affordability.
Some useful information, it's RPI + 0.5 upwards only. There is no fee to buy 100% if I decide to staircase at some point BUT there is a 1.25% exit fee of 100% of the property if I decide to sell before it's freehold.
Just after any general advice, not even sure I will like living on my own.
Many thanks
Comments
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if you are unsure if you will like living on your own, I would consider renting first. Another option would be to buy a 2 bedroom place so you can take a lodger.
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the upside down set up would freak me out a bit. maybe I'd get used to it. why would someone build a place like that? I'd understand if it was on a slope so the front door was to the upper level.
there might not be a fee from the housing association for buying more but there will likely be bills attached - like solicitors perhaps?
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It is very much a niche property and whatever percentage you buy you will be paying rent on the remainder.
I have looked on the EA list of property for sale and there is a 2 bed for £160k that with your deposit you should be able to get a mortgage on. You would then have the option of letting the second room and would eventually own the whole property once mortgage paid off
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