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selhurst sound

Mychoice Homebuy Scheme - Moving Home

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I currently own a property that was purchased using the MyChoice Homebuy scheme back in 2009, which was the equity loan scheme supported by the Government. Housing association put up 29% with the remainder being covered by mortgage. It's in Greater London/Surrey.

We're now looking to move house and I'm weighing up two options that I wouldn't mind getting some opinions on:

Option 1 - Buy out the equity loan first and then start looking to sell & move on.

Option 2 - Just sell & move on, with the equity loan being repaid as part of the sale proceeds

Where my dilemma lays is that recently in my area properties have been quite commonly selling for over and above the asking price, so a possible 'pro' of option 1 is that the equity loan is repaid at 29% of an independent valuation, rather than 29% of the sale price. (This assumes that the sale price is higher than the valuation) Obviously, I have no guarantee of that.

But then the other side I'm trying to weigh up is that I'll be paying for a lot of the administrative costs twice - there will be legal fees in buying out the equity loan, and then again when selling/moving. And of course I'll have to pay for a valuation when buying out the equity loan too.

Originally I was sold on option 1 as being the better idea, but the more I've thought about it I'm starting to go the other way. Particularly with the potential of the market starting to turn. Currently we're tied into our current mortgage deal until May 2015, so were going to wait until early 2015 to start getting the ball rolling anyway.

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