Equity Release and Shared Ownership

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cbdawg
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by cbdawg » Thu Feb 15, 2018 6:27 pm
Evening Everyone

Does anyone know how equity release works with shared ownership? I'm most confused. I own 40%, the housing association own 60% the calculation methods I've researched dont method any potential of shared ownership and I'd like to know what to expect.

I want to be prepared, I have a few years left but its nice to know how this is going to affect me.

Any help is much appreciated.
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Foggy
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by Foggy » Thu Feb 15, 2018 6:45 pm
This should have been investigated and discussed with your IP before going into the IVA. Many shared ownerships will prohibit you getting a remortgage or secured loan so a 12 month extension would be, in that case, the only option.
Should your H.A agree to allow a remortgage, if, indeed, one was available, this would be based on working out the equity for the whole property and then dividing it, allocating 40% to you as your share.
cbdawg
Posts: 23
by cbdawg » Thu Feb 15, 2018 7:00 pm
Foggy wrote:
This should have been investigated and discussed with your IP before going into the IVA. Many shared ownerships will prohibit you getting a remortgage or secured loan so a 12 month extension would be, in that case, the only option.
Should your H.A agree to allow a remortgage, if, indeed, one was available, this would be based on working out the equity for the whole property and then dividing it, allocating 40% to you as your share.


Thanks for your reply, it was and I accepted that the 12 month extension would probably be what would happen. I just wanted to clear up how they actually calculate if its a clear divide then that makes it easier to work out.
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Lisa Thomas
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by Lisa Thomas » Fri Feb 16, 2018 11:43 am
If you're already in an IVA have a look at the calculation used in your original proposal documents.
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