At some stage during your ownership, you may want to make changes to your mortgage, such as changing your lender or taking out extra borrowing on your existing mortgage. As we have a financial interest in your home, it is important that we agree to any changes to your mortgage.
We are only able to provide our consent to any changes to your borrowing in the following circumstances;
- To enable you to staircase and buy further shares in your home.
- For essential repairs to your property, which if not carried out, would result in you breaching your repair obligations contained in your lease.
- To enable one joint shared owner to buy out the other shared owner.
- To enable you to move to a better interest rate.
How much can you borrow against your home?
We will allow you to borrow up to 90% of the value of the share you own in your home.
For example, if your home is valued at £200,000 and you own a 50% share (£100,000), you can borrow up to 90% of the £100,000, this amounts to £90,000 in total, including your existing mortgage and any other loans you may have secured against your home.
Our fee for dealing with this can be found within our administration fees information.
Transfer of ownership
During your ownership, you may wish to transfer the legal ownership of your home, such as in the event of a marriage or separation. Due to our financial interest in your home, our consent will be required. Normally, in order for us to consent to the transaction we will require the following:
- Letters from all named and future leaseholders confirming that they agree to transfer.
- A letter from the bank or building society that provides the mortgage agreeing to the change.
- A clear rent account and no current legal action.
You will need to instruct a solicitor to act on your behalf and they will need to contact us for confirmation on what is required under the terms of the lease. Our administration fee for dealing with this matter will also be payable.