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Hi all, I'm looking for some advice on what to do with my shared ownership headache. 

 

I bought a 50% shared ownership flat from a housing association in 2005 for £45,000 and, after being in negative equity for years, it now has £20,000 left on the mortgage and is valued at approximately £35,000 for 50%. I moved out of the flat about 18 months ago and bought a house with a family member. I have just finished refurbishing the flat with the intention of renting it out. I have been running through some figures but it doesn't seem as rosy as I thought it might.

 

At the moment I pay out £827 per month for the flat.

Rent I pay for the other 50%, including service charge: -£230 per month
Mortgage payments on my 50% share: -£500 per month
Council Tax: -£97 per month
Mortgage repayment date: October 2021

 

If I rent it out I then the situation could be paying out £375 Per month

 

The rental income for the flat: £500 per month
Letting agent Setup Fee: -£650 Per year (or -£55 per month)
Letting agent management fees: -£60 per month
Landlord insurance: Haven't got this yet, I guess about -£20 per month
Rental guarantee: -£10 per month
Rent I pay for the other 50%, including service charge: -£230 per month
Mortgage payments on my 50% share: -£500 per month (Mortgage interest approx £60 per Month)

 

After October 2021 when the mortgage is paid I should get £125 per month

 

If I purchase the remaining 50% after October 2021 I should get £215 per month

 

The rental income for the flat: £500 per month
Letting agent Setup Fee: -£650 Per year (or -£55 per month)
Letting agent management fees: -£60 per month
Landlord insurance: Haven't got this yet, I guess about -£20 per month
Rental guarantee: -£10 per month
Mortgage: £140 per month

 

My headache is whether I should just sell it, (I should also get back £5,505 of stamp duty because the house I bought after had the 2nd home stamp duty surcharge)? Rent it out as it is now at 50%? Or staircase and buy the other half of the flat so I can stop paying rent to the housing association (Service charge would still be approx £60) and maybe try and extend the lease. The property’s current lease runs until 2084.

 

Any help or advice would be appreciated and congratulations on reading all that.

 

Many thanks, Dave

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