Now Have A Mortgage Should I Still Be Paying Rent To Livewest?

[kitchenmares]

Hi all, we use to pay interest only on this house, rent was helped by government, we now have a proper mortgage with Nationwide, we are still paying £300+ to Livewest whose house this was. Sheould we still be paying this as now have a mortgage and buying? Thank you

[barry1010]

What do you mean by 'used to pay interest only' and 'now have a proper mortgage'?
Did you buy the property on a shared ownership scheme?

[bobbinwales]

Were you paying rent and interest before? Seems odd

[bednobs]

if you have bought your home outright, paying the full market price for the whole house from Livewest, you should not be renting from them too.
if you got a shared ownership mortgage, and just bought part of the house, you should still be paying rent on the other part.
I find it worrying you don't know

[bookbinder]

Have a word with Livewest:
https://www.livewest.co.uk/contact-us

[Buenchico]

The only situation I can see where you'd be paying BOTH a mortgage (of any type) AND rent on a property was if you'd bought it under a shared ownership scheme. Assuming that's the case, some figures might things clearer:

Let's say that you bought a house worth £200k under a 50/50 shared ownership scheme, using a £10k deposit. You'd own half the house (valued at £100k) and need to take out a mortgage for £90k in order to pay for the rest of that half. (That mortgage could either be a conventional one or an 'interest only one'). The other half (£100k) would be owned by the property developer (or whoever they sold it to), for which they'd charge you rent.

If (using my sample figures), you've simply converted an interest-only mortgage on £90k into a standard mortgage against the same sum, the property developer (or their successor) will still own the other half of the property, meaning that you'll still need to pay rent on it. [I'm guessing that's what's happened in your situation]. In order to eventually own the whole of the property, and not to pay rent, you'd need to convert your interest-only mortgage on £90k into a standard mortgage on £190k, allowing you to buy the developer's share of the house.

If you've already bought the developer's share of the property (and have got a mortgage to cover that purchase, as well as your original one) then, clearly, you shouldn't be paying rent.

[Buenchico]

>>> "I find it worrying you don't know"

That makes two of us, Bednobs!

[bednobs]

BTW im not taking the mickey - lots of people find money difficult to get their heads round. However, as a house is probably the most expensive thing you'll buy in your life, it's essential to understandhow you are paying for it, and what you will actually have when the mortgage comes to an end. £300 pm is quite a big amount to pay extra PM if you werent expecting to

[Peter Pedant]

Yes under certain circs.

usually buying a shard-owndership house, you 'stepped up' to four/fourths. You will understand that all this depends on your own circs. All the step ups I know, the rent stopped on the day the sale was completed.

[kitchenmares]

Bless you all, so good to read these answers. All of you have made me look into this deeper and have speeded me along the way to pull my finger out and look at what we are doing exactly x

[bethanysh25]

Might be a good idea to find the original contract of service from Livewest and read the small print. It depends what was agreed, but primarily new contract with Nationwide should be decisive.

[barry1010]

Have I got this right? I am reading between the lines.

You bought a house on a shared ownership basis (LiveWest being the other party) with an interest only mortgage and paid the mortgage on the share you bought and rent to LiveWest for the share they own.

An interest only mortgage IS a proper mortgage.

You have now converted the interest only mortgage to a repayment mortgage.

The question is - did you borrow more money to buy out LiveWest's interest in the house?

You need to check your paperwork and if you are still not sure you need to see a copy of the Title Register of your home. You can get a copy for £3 from here https://www.gov.uk/search-property-information-land-registry

[bobbinwales]

Yes did you think your recent change was taking a bigger mortgage to cover the old share plus the bit you use to rent. Orcwas it just changing the existing one to repayment.