Equity Release and Shared Ownership

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cbdawg

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Post 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.

Foggy

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Post 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.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
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cbdawg

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Joined: Sun Jun 11, 2017 6:46 pm

Post 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.

Lisa Thomas

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Post 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.
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: https://www.youtube.com/channel/UCMPTTu ... Z5k9ZcC2MA http://www.nevilleco.co.uk 01752 786800 Lisa@nevilleco.co.uk
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