Buying the rest of my shared ownership home? Anyone done similar?

[Plugsockets1]

Can someone help me think this through please.

I bought a 40% share of a shared ownership property worth in total at the time £395k. I put down around £25k deposit and took a £135k mortgage.

My mortgage balance is £120k.

IF my property was worth what I paid I'd have around 40k equity right??

But current similar homes are going for £360k.

So my 40% share means I have around £16k equity equivalent?

Once interest rates settle I'd really like to buy the other 60%.

(Bit of a mixed blessing the property value going down - I've lost equity but cheaper to buy the rest.)

So assuming it stays worth £360k, I'd need an additional mortgage to cover £216k? Could I use the equity I have to do this? Or do I need to raise another deposit? I'm not sure what I'm saying makes sense but appreciate any experiences!

We bought our house using the help to buy scheme 8 years ago. We put down a 5% deposit, the government gave us 20% and we have a 75% mortgage. Under our scheme if the value of the property decreases then we still have to pay back the full amount on the help to buy that we borrowed. If the value increases then the help to buy loan is 20% of whatever the value of the property. Our mortgage has decreased over time so we now have more equity. Do you not have paperwork to refer back to from the original purchase as that should explain where you stand?

Yes you can use the equity in the home as a deposit. I did this. However, Like you say your equity is less now and your deposit is likely to be below most lenders threshold:

Easier way to look at it is as follows, based on £360k house, they’ll calculate based only on the value now.

Current ownership - £120k mortgage outstanding on value worth £144k (40%) - positive equity of £24k.

Purchasing up to a 100%, mortgage required on remaining 60% = £216k.

Total amount borrowed - £336k, total deposit - £24k. Approx 7% deposit in exquity. So you would need a mortgage offer 93% LTV. Very rare, so if you could put in an additional £9k you’d have more options.

We plan on paying off our help to buy next year when our mortgage is due for renewal and will hopefully absorb the cost into our mortgage. Our property has increased in value so we now have to add roughly 40k to our current 96k mortgage to absorb the cost. From mortgage lender pov this will be a £136k mortgage on a £200k property (South Yorkshire prices for a 3 bed semi in my area) however with shared ownership I think you can only buy shares in percentages and it depends on the terms of your lease?I would imagine the landlord share is based on the current value of the property though and you'll need a RIXOS valuation.