Selling a shared owenership property

Bassmansam

Bassmansam

Bassmansam

Soldato
Joined
22 Nov 2007
Posts
4,272
Hi guys

Me and my gf have lived in a SO flat for 4 years now and are thinking about selling up to buy a house outright. I'm trying to work out how much of a deposit we would have for a to buy a new place upon selling, here are the details.

Property value 250k when purchased of which 40% is owned by us
roughly 5k deposit putdown and now about 20k paid off the mortgage
75k left to pay on mortgage
35 year term
in may we signed a 2 new 2 year fixed term deal at LTV 75%
3.89% initial rate
6.0% APR

Hope this helps
 
Last edited:
Bassmansam said:
Hi guys

Me and my gf have lived in a SO flat for 4 years now and are thinking about selling up to buy a house outright. I'm trying to work out how much of a deposit we would have for a to buy a new place upon selling, here are the details.

Property value 250k of which 40% is owned by us
roughly 5k deposit putdown and now about 20k paid off the mortgage

Any ideas?
Click to expand...

Not enough info. How long was your mortgage for and what interest rate have you been paying?

Is £250k the value of the property when you bought it or now?

You will get a shock about how little capital you have paid off.
 
Surely (before costs) you have 20k?

So after costs, you're gonna have.. What.. 15k?
It will likely be less than that. Selling fees, buying fees, stamp duty fees

It is shockingly low usually how little mortgage you pay off.

Mines 800ppm. Only about 500ppm comes off the mortgage. That's at a 1.79 rate too!



You'll no longer be a first time buyer either.
You might only be looking at 10k-12k after all costs. Assuming you have 0 savings

Oh also, value of property could increase or decrease this.
 
Greebo said:
Not enough info. How long was your mortgage for and what interest rate have you been paying?

Is £250k the value of the property when you bought it or now?

You will get a shock about how little capital you have paid off.
Click to expand...

35 year term, we have been doing 2 year fixed terms and its currently at 4.59%, hope that helps.
 
Bassmansam said:
35 year term, we have been doing 2 year fixed terms and its currently at 4.59%, hope that helps.
Click to expand...

Do you know how much mortgage you have left?

Do you know the rough value of your property?

4.6 is very high. Its the fixed term over?
 
Bassmansam said:
35 year term, we have been doing 2 year fixed terms and its currently at 4.59%, hope that helps.
Click to expand...

It does. One last question. You say you have "paid off" £20k. Is that 20k of the original loan paid off or do you mean you have paid 20k in those 4 years in mortgage payments?

If its the latter, you will have only paid off £6k of of the original loan, the rest will have gone on interest.
 
Last edited:
Op. You should really absolutely know how much equity you have left to think about this. It's easy to find out from your lender or one of those credit reference agency free check sites
 
Bassmansam said:
Property value 250k of which 40% is owned by us
roughly 5k deposit putdown and now about 20k paid off the mortgage

Any ideas?
Click to expand...

This is simple enough - how much is the mortgage?

You own 100k of a flat worth 250k

We don't need to know how much your deposit was initially, all that matters is the amount it is worth now (which you've given us) and the amount left on the mortgage, which you haven't given us.

What you have left for a deposit is 100k minus the outstanding mortgage.

You say you've paid off 20k but you don't tell up what the mortgage amount was. I mean if your flat hasn't risen in value at all then we could assume there was a 95k mortgage with your 5k deposit and you've paid off 20k so have 25k for a deposit right?

But, has the flat changed in value - is 250k the current value and more than you paid for it - we don't know ergo we don't have an answer here..
 
You need to know:

Current value of the property (get 3 estimates and take the middle price as a rough guide)
Current outstanding mortgage amount. Don't base this on what you have paid but get an actual amount from the lender.

Then just take 40% of the current value and subtract the current outstanding mortgage amount. this will give you the amount of equity you have in the property. But you then need to work out the costs involved in selling and buying the new property. This will eat into it considerably.

Consider:
Property report fees (whatever they are called now when you sell a property)
Early repayment fee on the mortgage (if it's applicable and if you are changing lenders)
Stamp duty on the new property (if applicable)
Solicitors fees.
Search fees.
Moving costs.
Mortgage arrangement fee on the new property.

It's hugely expensive to move to buy and sell and one of the reasons we haven't bothered downsizing yet.
 
You have £25k to play with. Assuming your £20k you reference is after interest and not just what you have paid monthly multiplied by time.
 
Ooh. You might be stuffed.
You signed a new fix in May.
If this is true the fees for exiting this might be so high its not worth it. Plus fees for buying, selling, and all of that.
You would absolutely need to contact your lender and discuss

There's usually a percentage fee of the loan. If its 5 percent. You could be looking at a 4k fee just to leave.
There are options depending on lender.

Looks like you have 25k equity. (a summing no current value change (probably wrong)
 
40% of 250k is 100k. You owe 75k so you have 25k left before lawyers, etc. I'd assume you've got a deposit of approx £20k for the next one.
 
413x said:
Ooh. You might be stuffed.
You signed a new fix in May.
If this is true the fees for exiting this might be so high its not worth it. Plus fees for buying, selling, and all of that.
You would absolutely need to contact your lender and discuss

Looks like you have 25k equity. (a summing no current value change (probably wrong)
Click to expand...
As PS once corrected me, porting the existing deal (+ incrementing) isn't too complicated. Although his rate really sucks so he'll be paying the higher rate on a higher value property which'll cost future Bassmansam quite a bit of fun tokens - the early exit fees on a 75k mortgage can't be too big in anycase.
 
dLockers said:
As PS once corrected me, porting the existing deal (+ incrementing) isn't too complicated. Although his rate really sucks so he'll be paying the higher rate on a higher value property which'll cost future Bassmansam quite a bit of fun tokens - the early exit fees on a 75k mortgage can't be too big in anycase.
Click to expand...

Isn't it lender dependent? And circumstance dependent? I've never done it. But it could cause a hassle. And yeah that is a high rate for 75 ltv
 
taB said:
40% of 250k is 100k. You owe 75k so you have 25k left before lawyers, etc. I'd assume you've got a deposit of approx £20k for the next one.
Click to expand...

Nope, you need to know the current value. If it hasn't changed in value then you're correct, if it has increased in value then the OP has 40% of that increase too.
 
413x said:
Isn't it lender dependent? And circumstance dependent? I've never done it. But it could cause a hassle. And yeah that is a high rate for 75 ltv
Click to expand...
It absolutely is, but in my attempts to learn a bit I did Google quite a few typical lenders, and very few were "against" porting - especially when you are increasing the value. The catch will be if his current mortgage is specific to a shared ownership construct or something.
 
dowie said:
Nope, you need to know the current value. If it hasn't changed in value then you're correct, if it has increased in value then the OP has 40% of that increase too.
Click to expand...

True, goes up or down depending. (Value of property*0.4) minus 75k outstanding mortgage minus any fees
 
dLockers said:
It absolutely is, but in my attempts to learn a bit I did Google quite a few typical lenders, and very few were "against" porting - especially when you are increasing the value. The catch will be if his current mortgage is specific to a shared ownership construct or something.
Click to expand...

It will be a new mortgage on worse ltv I assume too. So that ltv will shoot right up right?

Also. Is shared ownership FTB only? (not sure)
 
You must log in or register to reply here.
Back
Top Bottom