Shared Ownership staircasing

[nothappymummy2014]

We own 50% of a shared ownership flat in London (with mortgage) and are considering purchasing another 25%. This would reduce our rent but obviously the mortgage would increase. Looking at figures it won't be much more than we are paying now, aside from the outlay of legal fees and surveyor cost.

I am just wondering if owning 75% would make the property more difficult to sell in the future due to affordability. The 75% share would be worth around £195k. We do have the option to sell on the open market if the Housing Association cannot sell within a certain timeframe.

We were thinking about moving out of London, but the rail figures would cripple us as we currently get free travel from employer.

[whois]

I believe, anecdotally from friends who are in SO, that once you staircase up past 50% you need to have a plan to staircase up to 100% really - as people who can afford e.g. 75% of a SO place, can normally afford 100% on a non-SO place a little bit further out.

SO isn’t attractive unless it is your only option for buying something, and people who are eligible for SO generally struggle to get the deposit together. So having a SO flat with a high ownership % reduces severely the number of people who can buy it.

However, if your place if particularly attractive (not just a standard 680sq foot 2 bed flat) you might be OK to staircase up to 75%, especially with the new higher income limit.

[nothappymummy2014]

Thanks. Looking at figures to buy the additional 25% share we wouldn't be paying much more than we are paying now so it seems worth doing.

We probably could then buy the remaining share at some point in the future and sell on the open market.

[whois]

We probably could then buy the remaining share at some point in the future and sell on the open market.

If you can staircase out to 100% in the medium term and sell on the open market, this is defo the best plan.

Hope it works out.