Hi everyone, first post here so be gentle.
I've searched and read quite a few posts which have similar issues but my situation is a little unusual.
I have an apartment that was bought through a shared equity scheme with Bellway Homes. Bellway have a second charge on the property and its not a loan as such and I don't have to pay anything for it, however come sale time they're entitled to 25% of the sale price.
The property, like many in the last few years has depreciated in value. If sold, it would clear the mortgage but not the second charge meaning I can't sell. And as its not a loan as such, there's not really scope to ask Bellway to repay the difference by other means.
Me and my girlfriend are looking to buy somewhere together, this will save us an absolute fortune in the long run.
My girlfriend has £40k equity in her property, this would be put down on the new property we would be buying together. As this equity is made up originally from a gift from her father, if we were to buy together it would be written in that she would be entitled to this back when selling (providing the new house had sufficient equity of course) which is all fine!
We earn a reasonable wage each and could comfortably get the mortgage required for a new place.
I feel a bit stuck and I'm looking for a few options on my side of things. From what I've found out so far I think my options are:
- My girlfriend could get the mortgage and buy the place on her own. I could then rent my place out (Halifax seem quite open about this). I'd then sit on the property hoping it will regain value, the trouble is I don't think it will! Plus there's the potential hassle of renting my place out.
- I get a loan and buy back the equity from Bellway at market value which I can do which then allows me to sell.
- We get a mortgage together and see if we could still get one despite me having another mortgage and then borrow extra to buy the equity in my apartment and then free it up to sell.
Thoughts?
I've searched and read quite a few posts which have similar issues but my situation is a little unusual.
I have an apartment that was bought through a shared equity scheme with Bellway Homes. Bellway have a second charge on the property and its not a loan as such and I don't have to pay anything for it, however come sale time they're entitled to 25% of the sale price.
The property, like many in the last few years has depreciated in value. If sold, it would clear the mortgage but not the second charge meaning I can't sell. And as its not a loan as such, there's not really scope to ask Bellway to repay the difference by other means.
Me and my girlfriend are looking to buy somewhere together, this will save us an absolute fortune in the long run.
My girlfriend has £40k equity in her property, this would be put down on the new property we would be buying together. As this equity is made up originally from a gift from her father, if we were to buy together it would be written in that she would be entitled to this back when selling (providing the new house had sufficient equity of course) which is all fine!
We earn a reasonable wage each and could comfortably get the mortgage required for a new place.
I feel a bit stuck and I'm looking for a few options on my side of things. From what I've found out so far I think my options are:
- My girlfriend could get the mortgage and buy the place on her own. I could then rent my place out (Halifax seem quite open about this). I'd then sit on the property hoping it will regain value, the trouble is I don't think it will! Plus there's the potential hassle of renting my place out.
- I get a loan and buy back the equity from Bellway at market value which I can do which then allows me to sell.
- We get a mortgage together and see if we could still get one despite me having another mortgage and then borrow extra to buy the equity in my apartment and then free it up to sell.
Thoughts?