Want to sell Shared Ownership house and buy another one

katchm

Registered User
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1
hi all,

i've an affordable house i purchased in 2008 via shared ownership & (even after reading through so many of these threads) i'm still confused about some next steps i thought i should take - any clarification would help me MASSIVELY! here's the essay :)

MY SITUATION:
i bought in 2008; can't rem the value of the property at the time, but took out a 25 year mortgage and with 17 years left to pay & now have 211k outstanding with interest rate of 2.55%, with monthly payments of 1350 of which 700 is 'rent'. i left the country in 2013, and have been renting out the property since (DCC at the time said i could not rent out the full thing - but i had no choice), and in the past 3 months only is the rent meeting the mortgage payments.

WHAT I NEED TO DO:
i would like to buy a house now with my partner; and when speaking to the DCC recently to update myself on the terms; i was told that i 'qualified' for a 100% mortgage. she explained (which i was completely unaware of) that even at the end of the 17 years, i would still have 113k outstanding, which constitutes the councils rental portion. she also said if i took out a new mortgage, for the full amount of 211k, over 20 years, i'd be paying 1210 monthly and at the end, the mortgage would be completely paid off in full.

i was shocked firstly that for some reason, i was unaware of this set-up (HOW did i not understand this at the time????) and then surprised - the 100% mortgage seems like a no-brainer: reduced monthly payments but for 3 extra years i'd have the full amount paid off.

i decided i must get this sorted asap, and requested the forms to apply; received them; and as part of the documentation found they required 6 months bank statements. this poses a problem because i have been renting out the property, which is against the terms of the property.

so reviewing this site, i wanted to see if i could find information on other people who've rented out their SO property and also on the 100% mortgage bit. some threads have been esp enlightening, but i still have some qs:

Q1: from this thread, it would seem that the lady in the DCC might not be correct in her assumption that i will owe 113k at the end of the mortgage term - am i correct in understanding that? Brendan - i think you seem quite adamant that the DCC get info wrong. have i been misinformed? (my assumption would be that a member of the DCC would know more about it than - no offence, don't know your background or experience - a layperson?)

Q2: somebody else (and others, on other threads) seemed to imply that the 100% mortgages were not as good as they were cracked up to be - but i can't really decipher EXACTLY why....to be fair, it does seem like a weird 'gift' to be offered & i wonder what the DCC get out of it...

Q3: i assume that if i give 6 month's bank statements, they will see i've been renting out and i will not qualify for the 100% mortgage.

so! sorry if i've posted incorrectly a topic not directly linked to the thread, but my confusion applies to the set-up of my so hopefully it is relevant?

i feel lost - help :-(
 
Are you saying you don't know the value of the house that you bought in 2007?

I understand that SO is to allow people who can't afford to buy their own house the opportunity to build up equity in one.

You are paying €700 in rent and €650 off the loan €650 x 12 x 17 = €133,000 so obviously you won't pay off €200k at €650 per month.
 
Is there some reason why you cant move back in for 6 months, have a 'clean' bank statement to present with your application? Its not clear if you intend to live there now and take over the mortgage or if you still intend to go ahead and buy an alternative property with your partner?
 
The 100% mortgage would only be available to "buy out" the rental portion of the existing Shared Ownership, it would not be available to purchase another/different property.
 
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