As always, our team is here to answer any questions you have and help you through this.
- 1. Financing your bigger share
Before you start it is a good idea to understand how much you can afford. You can estimate the value of your home by looking on property websites for homes like yours or by talking to your local estate agent. You should also talk to your mortgage adviser or lender as this will help you estimate how much you will need to increase your mortgage by and if this is realistic.
Appointment of Solicitor
If you are self-funding with your own finances to buy a bigger share you do not need to appoint a solicitor. A solicitor is only required when you are buying out fully or you are purchasing the last remaining 5% share of your equity.
If you are refinancing with your existing lender to fund your equity purchase they may require you to appoint a solicitor however, Co-Ownership will not require this. If you intend to remortgage to a new lender you will need to appoint a solicitor to ensure the correct legal paperwork between us and your new lender is put in place.
Co-Ownership does not instruct its own solicitors in relation to this. You will be responsible for your own costs and expenses involved in buying a bigger share of your home.
- 2. Home improvements
The maintenance of your home is your responsibility. We know that you may have done some home improvements and that these may increase the value of your home so please tell us about them when you request your valuation. That way our valuer can take these into account.
There is a difference between maintenance and improvements and how this impacts the value of your home is explained below. Repairs & maintenance are classified as items that need updating within your home due to general wear & tear.
These do not increase the equity value of your home. However, if you make improvements to your home you alone benefit from the increased value that you have created, not Co-Ownership. Please tell us about the home improvements you’ve made. An improvement is defined as anything that adds value to your home.
Repairs and Maintenance
- Plumbing and electrical maintenance and upgrading
- Solid fuel, oil and gas central heating system maintenance and replacement (including replacement of boiler, radiators and or change of heating system)
- Roof repairs e.g. replacing damaged/missing slates and/or tiles, re-pointing mortar at eaves
- Re-point brickwork or repair defective render
- Replacing defective/damaged glass in windows, window catches, locks and hinges, rotted frames
- Replacing damaged doors, door frames, locks and door hinges
- Overhauling rainwater goods, guttering, drains and gullies
- Overhaul/replacement of fascia and soffits
- Change/replacement of floor coverings which no longer impact on the value
- General maintenance/upkeep/landscaping of the external areas.
- Installation of wood burning or multi fuel stove
- Conversion from Economy 7 heating system to oil or gas central heating. Any other change is considered a maintenance/repair
- Construction of a garage
- Loft conversion into habitable accommodation
- Addition of a sunroom/conservatory/porch
- Home extension increasing habitable accommodation e.g. additional bedroom or living area
- Recently fitted kitchen/bathroom if it increases value
- Solar panels/renewable energy if owned outright
- Installation of fitted furniture e.g. wardrobes if it increases value.
- 3. Ready to increase your share?
If you’ve got your finances in order and are ready to buy a greater share complete a valuations request and we’ll arrange to have an external RICS registered valuer to carry out a valuation of your home at a cost of £60. Valuations are only ever an estimate of the value of your home and are valid for 12 weeks.
- 4. Valuation completed
We will complete the valuation as soon as possible. The valuer will need to visit your home and inspect it externally and internally. They will also consider other houses in your area for comparison. Once they have completed their work we will send you a letter outlining the valuation, normally within two weeks of your request. Valuations are valid for 12 weeks.
- 5. Decision to increase your share
Within the valuation letter there is a form for you to let us know if you’d like to progress your purchase. You should aim to complete that and send it back to us as soon as possible. You should also let your mortgage adviser or lender know the outcome of your valuation to help them progress your finance. Remember, valuations are valid for 12 weeks.
- 6. Your share is increased
While all this is going the clock is ticking on your valuation which is valid for 12 weeks. For you to increase your share Co-Ownership should receive the funding for this within that period. If something goes wrong and you are going to miss this deadline please get in touch with us as we may need to carry out a second valuation.