Shared Ownership - should I buy more shares?

JasminYoung

Hi Mac,

I think I my maths description may have been misleading!!
I basically have 3 options:

1. Stay with current lender and automatically go from 4.4% to 6.5 - costing me £200 more a month than now and remaining with my 80% share, having to wait 3 months before I can value again and hope that prices will fall.

2. Remortgage (for 5.34%) and buy out my final 20% - costing me £350 - £400 more a month than now (but only £150 - £200 more than option 1) - not including Stamp duty and costs, and hope that the value does not fall.

3. Sell and take my 100 grand equity and rent somewhere - thereby losing my foot on the property ladder and any potential rental value of my central london flat!!!

My heart says option 2, but my head says option 1...

LittleMissAspie

How about option 1 but overpay your mortgage by £200 a month? You will save a lot of interest and could probably buy the rest in a few years for cheaper.

ixwood

London going to be the hardest hit. To think that the it's over the worst is very naive/optimistic. There's 2-3 years of falls ahead. It's only just starting.

The places with the biggest rises will have the biggest falls. There's a lot of ridiculously overpriced property.

The UK (i.e. London) finance industry is on it's knees at the minute and a lot of rich foreigners will follow the money out.

The stupidly lax lending of the last decade is gone. Banks expect large deposits and have sensible lending criteria now. Where do you think all those millions of 5-10 x income mortgages were sold? I'd guess mostly London. What's 3.5 times 50k?

ixwood

IMHO of course.

Helga14

One over thing to bear in mind that buying more of your property can take a long time if your housing association is anything like mine. I started the process mid January this year buying another 20% and I exchanged last week so it took four and a half months. I am with Circle Anglia. Are you also 100% that your lease allows you to rent the property even if you own 100% I'm pretty sure that I can't let mine even if I own 100%.

The process of buying more had a lot more costs than I expected. The legal fees were higher than I expected. Luckily Circle Anglia were doing an offer were they reimbursed the valuation and some of my legal fees and covered their legal fees.

I'm not sure whether financially it was the right move to buy more we will see. But I wanted to be paying less rent and be closer to owning more. Also they sold me the property at a below market value price so I know that buying the large share I paid less than I should have.

Are you sure you will get someone to lend you another £70k at the moment?? I found my lender very conservative even though my LTV was somewhere between 60 to 70%.

Good luck with it. Shared ownership has been great for me. I managed to find a period property in a lovely very desirable bit of London that I could have never afforded in the past which I love living in.

Oliveru

JasminYoung wrote: »

Thanks Oliveru! I much prefer it now you say 'yes' than before when you say 'no'!!

Umm not sure what to say to that really

JasminYoung

It does make sense for me to wait a few months to see what happens - I just can't bear to stay on a SVR, but there is no point in paying remortgage fees now if I may have to pay a valuation fee and possibly also remortage fews in a few months time. At least I have the best of both worlds.....if price falls I can buy, if it goes up I will have to move and sell!!!