If you sold your shared ownership property

[MistySkiesAfterRain]

I have a mortgage on 70% of a shared ownership property.

I'm thinking of going up to 80% or 85%.

100% is out of my reach and likely to always be (although I said that about 85% so won't rule it out).

I may not stay in it forever. I might sell and move in a year or more.

My question is - how easy would it be to sell an 80 or 85% share?

It would be much harder (70% is pretty hard too) as those able to afford that percentage will probably also be able to afford a flat that’s not shared ownership. Is it a very high value property? Just wondering why 100% is out of the question (even if it’s further down the line) if you could go up to 85%. I think most shared ownership schemes also make you offer it to the housing association first before putting it on the open market. That’s what happened to my friend. The contract also said that the HA gets to choose the valuer, which means you’re less likely to do well out of it.

That is interesting about the HA choosing the valuer.

I wouldn’t go early the higher percentage the harder to sell for sure the repayments monthly are massive survey

I wouldn’t honestly I meant to say not early

Ooh. Good question! I’m in a shared ownership- we own 40% outright. Are you worried potential new buyer wouldn’t be able to afford such a large share? Is there room for the new buyer to negotiate a smaller share? Hmm… Then who pays the other bit? Does having a larger share but paying a mortgage on it reduce your outgoings that much? Do bear in mind every time you staircase you have to pay evaluation fees and all solicitor’s conveyancing etc again.

If you have more money than you thought would it not be better to try and clear your 70% mortgage faster by overpaying?

Very hard, most people do shared ownership because it's cheaper/easier to get a mortgage. There have been some lovely SO resales locally, but the high percentage (over 60) take forever to sell as most people wouldn't bother when they can buy a whole house for not much more (valuation of most SO around here is above market value).
I see no value in going up to 85 % if you aren't aiming for 100%.

We've always been advised to keep a low share or staircase to 100%.

Depends on value of property too. If it is rocketing is it wise to snaffle more of a share before it increases… I reckon the cost of staircasing by any amount will be a minimum of £2k.

@Dontfuckingsaycheese

Ooh. Good question! I’m in a shared ownership- we own 40% outright. Are you worried potential new buyer wouldn’t be able to afford such a large share? Is there room for the new buyer to negotiate a smaller share? Hmm… Then who pays the other bit? Does having a larger share but paying a mortgage on it reduce your outgoings that much? Do bear in mind every time you staircase you have to pay evaluation fees and all solicitor’s conveyancing etc again.

I just think if they had the funds for 85% surely they would buy on the open market. 70% someone might buy. Its in a desirable area, excellent links, 2 bed. If you can't afford a 2 bed on open market its an option.

I don't think the buyer can negotiate a smaller share no.

So I pay £190 rent, this would go down to £125 or £95 if I bought 80% or 85%. Obvs mortgage would go up but not too much of a shock as I am locked into higher interest at the moment as I got a 5 year mortgage just before covid and interest rates dropped. Current rates are still lower than what I am on.

In the last three years I paid £7.5k rent. I have to do something eventually, as essentially my current share is not really enough for the open market, but I don't want to pay rent on my pension. So either borrow more or save more.

And yes there is about 1.2k fees every time I staircase. Shared ownership is like the gift that keeps on giving! And however I try staircasing is ALWAYS stressful! They did offer £500 off legal fees as an incentive in January but that expired now. Plus I would now have to pay some stamp duty - should have done it when there was a holiday but I was anxious about Covid impact.

It is tricky as this is the thing - property goes up in value faster than my wages, so my worry is by not doing it would 100% become out of reach.

Then I am stuck. Maybe I am already stuck if no one will buy 70%!

I think I need a spreadsheet as my head is going to implode.

I guess you need to investigate a bit more eg find out from housing association re options for owned bit. When I was looking at shared ownership for the second hand houses there did seem to be option for negotiating other share %. So check this. Secondly remember that if you are entitled to benefits when you retire they can help with rent but not mortgages. We claimed UC when we moved in and they covered our rent. Also remember even if you staircase to 100% there are still restrictions as it’s affordable housing so not entirely open market. Yes I feel for you and your poor imploding head! I have no idea how much our house has increased in value if at all in the 2 years we’ve been here. I’m just happy paying our just over £200 pcm rent compared to our £500 figure in previous home.

Have you had an affordability assessment to see if you could afford the remaining share? It may not be that unachievable. I work in marketing for a shared ownership provider & we sell homes anywhere between 25 & 75%, some people like to initially buy a higher share, so the remaining share to buy is more achievable quicker.

Why not ask your HA how many homes they sell at a higher percentage? It will depend on lots of factors though :)

Thanks I will ask that question. I did an agreement in principle and need to save 5-10k before I could get the mortgage on all of it.