Top tips to follow when increasing your share

9nd March 2019
By: Co-Ownership

Increasing your share with Co-Ownership is straightforward; whether you are purchasing additional chunks of 5% or have decided to buy us out in one go. We have put together some of our top tips you should consider when deciding to increase your share.

 

1. Do your homework

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.

2. Understand the difference between Improvements & Maintenance

We carry out an Equity Valuation which is slightly different from the Market Valuation that your estate agent will carry out. This means that we value your home in the condition that it was when we originally purchased it, but based on today’s market price. If you had made improvements or carried out renovations to the property you keep the value that that has added.  Read more about this by clicking here

3. Use the tools available

Now that you have an idea of the value of your home, use the Buying out calculator on our website which will show you how much purchasing additional shares will cost you. 

4. Don’t sit on your valuation (not literally)

Your valuation is only valid for a period of 3 months, which means that if you want to proceed with increasing your share the transaction needs to be completed within 3 months.  If the valuation expires you will need to pay for a new one.

5. When to involve your 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.

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