Shared Ownership and Equity - Trying to Calculate

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cbdawg
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by cbdawg » Sun Aug 06, 2017 5:07 pm
Hi All

I am trying to estimate what I will need to do at the end of my IVA which is in 4 years, I know this is way in advance but I want to be prepared.

I have a shared ownership property to which i own 40%, property was purchased for £134500 I have approx £42,000 left to pay on my mortgage, and is now currently worth around £150000. I have been reading about remortgaging and equity release etc, but I dont really know how it works with shared ownership. Does anyone know?
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Foggy
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by Foggy » Sun Aug 06, 2017 5:31 pm
Many shared ownership schemes require the housing associations agreement to you remortgaging, which is not always forthcoming, so a 12 month extension is possibly the more likely outcome.
cbdawg
Posts: 15
by cbdawg » Sun Aug 06, 2017 5:40 pm
Hi Foggy

OK, thats not too bad, ideally I wouldn't want any extras lol but I get it. What I don't want is a huge equity bill.

Ideally what I would like to do after my IVA is finished, is staircase to 100%, again during this IVA I am trying to save as much as possible within the limits to ensure that I do have options, then if it transpires I dont, then I can make an offer.

I'll just keep plodding on then.
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Ryan
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by Ryan » Mon Aug 07, 2017 7:43 am
Staircaising to 100% is possible 6 years after the start date of the IVA subject to affordability at that time.

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size5
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by size5 » Mon Aug 07, 2017 1:06 pm
Most I.P's in these instances propose 6 years at the start anyway, without the need to release or even attempt to release equity.

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Michael Peoples
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by Michael Peoples » Mon Aug 07, 2017 1:12 pm
At these figures I do not think you would qualify for an extension anyway as £150,000 x 85% = £127,500. When you subtract the £90,000 owing to co-ownership for their 60% there is not even enough available to clear your existing mortgage. However, if your IVA equity release is based on 85% of 'your interest' then you could face an extension. Worth checking out as a year's less payments would be worth avoiding if at all possible.
cbdawg
Posts: 15
by cbdawg » Wed Aug 09, 2017 4:51 pm
Michael Peoples wrote:
At these figures I do not think you would qualify for an extension anyway as £150,000 x 85% = £127,500. When you subtract the £90,000 owing to co-ownership for their 60% there is not even enough available to clear your existing mortgage. However, if your IVA equity release is based on 85% of 'your interest' then you could face an extension. Worth checking out as a year's less payments would be worth avoiding if at all possible.


ive just checked and it does...:(
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