shall i buy another percentage of my shared ownership flat?

[iamnotstressed]

Changed my regular name to protect my anonymity. We are in a funny situation, dh and I. We have just inherited 30 grand out of the blue from long lost relative. Very pleased as financially we have had a crap year. We own 50% of a flat and we don't have a mortgage. We pay 100 pounds on renting the other 50%. The flat according to the housing assoc. is worth 160.ooo. On the open market would be worth about 200. We are thinking of using the 30 grand to buy another chunk of the flat about 20%. We cannot buy the full lot because we cannot get a mortage at the moment. I have been looking after ds doing bits of work, dh has been off work with depression for 6 months. Has work lined up for next month but freelance so not regular. Anyway should we wait until we can get a mortgage and save the money, or should we invest in the flat? It is difficult to know because we don't know if prices are going up or down!!!!

what else would you use the money for?

i;d put it on the flat.

put in a saving account? and buy the rest when there is a housing crash? it will never happen though....will it?

i dont know, will there be a crash

doesnt seem to be slowing atm.

How does it work if you are in shared ownership but don't have a mortgage? Sorry to be nosey but we are looking into this Homestake thing and it is similar, we need to have a mortgage for between 60-80% of the property and the housing association own the rest, we can buy more when we are financially better off.

I would buy more of your flat if that is what you want. Regardless of whether or not the prices go up or down it is still your home. I think people have lost sight of that in this time of ridiculous prices, it is a home not just a property.

Ok you have £80K in your house

You have a £30K deposit

Will you at somepoint in the future be able to afford a £50K mortgage?

& will you be able to pay the mortgage over a period of years 15-25?

& is the £100 a week or a month?

We spoke to a mortgage advisor and they told us that we cannot get a mortgage as our entries for this year have been very low, basically we have been on benefits. The rent on the other half of the property is 100 per month which is nothing really.
We originally bought 50% of the property with a mortgage which we were able to pay off when my mum died and we sold her house (lots of people dying around me . Eventually I will go back to full time employment, am pregnant now, so not for a while.....My dh's work is very irregular, he really needs to build up once again some good accounts. Is there a financial advisor I can access on the net? For free? The big question is will prices go down,does anybody on Mumsnet know?

ok I know as much about finanicla stuff as you, but if it was me I';d go 50:50: 15k on 10% of house, 15k in good savings accunt.

actually scratch that: 15k on house, 14k in savings account, 1k on a holiday.

...if he's going self employed, a healthy savings account can help to make things a lot less stressful

Will the amount of rent you pay drop if you nuy more of the property?

I personally would use £25k to buy more of a % in the flat and then keep the other 5k as a back up to live off until you know what's happening income wise. You could use £1200 and pay a years rent up front and maybe clear your council tax for a year of you have to pay it.

Yes, the rent will drop by 20%. We already have 10 grand hidden away for stressfull times (ie depressions, breakdwons, arrival of babies, etc ) We basically seem to have a lot of cash floating around, but no regular work, me with kids and dh who has had a major depression. We are very lucky though.
We should buy then?

sorry muchio thick q coming up

you own 50%

you pay £100 on the remaining 50%

so thats £400 pcm?

30k gets you 20% = £100 pcm cut on rent and gets you 80% of your flat.

thats 80% of your flat and £300pcm to pay?

I would put it in a high interest savings account until the bank of england makes their decision on the first of next month. Then post again. Because I think that things will be a little different then. You will be able to argue with your HA that their version of what your flat is worth, so may get it cheaper.

If you have DCs open a bank account for them with you as guardians, you get charged less tax.

she pays £100 rent a month custy

That should have read the first Thursday of next month, because that is when the BoE will make their decision. THis could be a blessing for you as you can fight the valuation of your property.

£100 pm means that
the other 50% would be £100 per month whouldnt it?

and that 30K reduces it by 20% means they knock off £20 per month

that can't be right?

Custy that is right, the rent on the other half is only 100, if we buy another 20% the rent would go down by another 20%, so very little. I will look at self cert mortgages, didn't know about them.