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Shared ownership loan

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    #32
    ladyeaston
    Closed Accounts Posts: 63 ✭✭ladyeaston


    people I know got the annunity loan they dont pay any rent portion of the mortgage I was to old to get the same , so I ended up with a shared ownership loan , my neighbour pays 1.000 a month off her loan, I pay 1.000 off mine, the 1.000 comes off her full mortgage , mine is split between rent and mortgage , both of us got our mortgage from the same county council but because of my age I will pay more,


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    #33
    ladyeaston
    Closed Accounts Posts: 63 ✭✭ladyeaston


    I wish the council owned a share of the house then I would not have to pay for everything I could ask them to share in the insurance , repairs, and after 20 years buy it from them at a very small amount, no more stress, sleep well, and more money in my pocket, jee the travellers have the best life , live free pay nothing, all fun aside I love my house and will pay my way but just want fareness. happy xmas


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    #34
    ladyeaston
    Closed Accounts Posts: 63 ✭✭ladyeaston


    no I dont care if the house is worth less , thing is it is not, i dont mind paying the full mortgage i just want the payments to come off the full mortgage like everyone else who have an annunity loan, just to be the same as if i got the loan from the bank, i am very thankfull to have a loan so as i could buy my home and will pay full mortgage plus interest, but not rent on top of that


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    #35
    Stheno
    Moderators, Business & Finance Moderators, Science, Health & Environment Moderators, Society & Culture Moderators Posts: 51,688 Mod ✭✭✭✭Stheno


    Is it not the case that after twenty years you will own the house outright as you will have paid the council back for the half they funded, and paid off your portion (mortgage)?


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    #36
    John Mason
    Hosted Moderators Posts: 10,661 ✭✭✭✭John Mason


    Stheno wrote: »
    Is it not the case that after twenty years you will own the house outright as you will have paid the council back for the half they funded, and paid off your portion (mortgage)?

    this is what i had with my shared ownership. ichanged to 100% mortgage cos i am throwing lump sums at it at, to pay it off quicker but my interest rate increased, so there is absolutely no difference in amount i was paying and the am amount i am paying now.

    I think the OP is very confused about what she entered into contract with


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    #37
    StillWaters
    Closed Accounts Posts: 1,799 ✭✭✭StillWaters


    Are you sure you are not paying an annuity, according to the following link, the rental portion is a mortgage.

    http://www.askaboutmoney.com/showthread.php?t=171257

    I must admit I didn't realise this, and presumed the rent was just that.


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    #38
    ladyeaston
    Closed Accounts Posts: 63 ✭✭ladyeaston


    StillWaters wrote: »
    Are you sure you are not paying an annuity, according to the following link, the rental portion is a mortgage.

    http://www.askaboutmoney.com/showthread.php?t=171257

    I must admit I didn't realise this, and presumed the rent was just that.




    Hi thank you so much for you imput This is why I got on this boards.ie so as to hear from smart people like you, the link is great I have read I and feel so much more informed thank you again and enjoy the coming season, as I shall put this to bed until the new year.

    regards


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    #39
    Gwen2000ie
    Registered Users Posts: 3 ✭Gwen2000ie


    Hi,

    My brother bought a apartment on shared ownership, say the apt was worth 260k at the time and he got it for a discount of 200k. he got a mortgage from the council for half and he pays rent on the other half.

    The problem is, while his mortgage half is going down as he is paying it off. the rent on their half is going up each year.
    (they increase it every year) at the same time the rented part not decreasing.

    So he is paying over a 100 euro more now for rent on half than he is on his mortgage for half. which seems just crazy.

    Now.. he has to buy the other half off them within a certain period of time, not sure but think it might be 20 years or something.

    The natural solution to this would be to buy the council half off them as he would be paying a mortgage on the lot and not subject to these rent increases every year.

    What I cant find out is how is this calculated, All i can see in his documentation is senarios where the market value has increased when you go to buy them out. they take the market value of the apt and you pay the difference.

    Obviously this is not the case though, the apt is only worth say 90k in TOTAL.

    Question 1

    If he was to buy them out, would he have to pay half of the market value of the apartment now. ie 90k/2 = 45k
    to get full ownership of the apartment. Or is it the case that they will want either 100k back?

    Question 2

    If the answer to the above question is that he would have to pay half of the market value today ie 45k. The property is only worth 90k and given that he already has a mortgage with the council for 100k will the council give him a further mortgage of 45k making the total mortgage 145k on a property only worth 90k! you see where i am going with it, they will have insufficient security on the mortgage.

    I have been researching on the internet and cant find anyone that is in this situation but i am sure lots of people are!


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    #40
    bunty04
    Registered Users Posts: 2 ✭bunty04


    Hi its been a few years did u progress this any further?


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