Equity is how much value is left in your property, minus the amount still owing on any mortgage. So, for example, if your home is worth £150,000 and you still owe £50,000 on your mortgage, then you would have £100,000 of equity. Transfer of equity is a change in co-ownership so that this pot of money is either split or shared with somebody else – for reasons which we will discuss below. Why is a transfer of equity necessary? There are a number of reasons why home owners seek a transfer of equity, including: Separation or divorce when one party…Read more..
If you’re a council house tenant, then you may be eligible to apply to buy your home outright – and at an often-sizeable discount too. However, there are some factors to take into consideration (particularly if you come to sell on your property at a later date) so it’s important to seek legal advice before committing to a purchase. How does right to buy work? Under the current scheme, you can apply to buy your council property if: It’s your main residenceIt is self-contained and you do not share other rooms with somebody else (for example a bathroom or kitchen)…Read more..
In today’s market, it can be difficult to get a foothold on the property ladder. House prices have more than tripled since the late 1970s, and although salaries have also increased, wages have generally lagged behind in the ever-expanding housing bubble. The discrepancy means that more people are finding themselves in rented accommodation or looking for alternative ways to buy a home. Step forward, shared ownership. What is shared ownership? Shared ownership schemes are aimed at people who do not have enough income or savings to buy a property outright. Instead, would-be purchasers are allowed to buy a percentage of…Read more..
If you want to free up some cash and remain living in the property that you own, then you might have already heard about, and considered equity release. Essentially, this process involves converting the value in your home and turning it into a cash lump sum or regular income. What’s more, you don’t even need to have paid off your mortgage in its entirety in order to access the money. No wonder it’s an increasingly popular option for over 55s who may have benefited from a boom in the property market but find themselves cash poor - priced out of…Read more..