I am unable to sell my 12.5% share of a shared-ownership property because no-one is interested in purchasing anything less than 50%. If I applied for a mortgage to increase my share, what action could be taken by either the landlord or lender if I failed to keep up repayments?
I’m assuming you bought your share from (and pay rent to) a housing association. Have you approached them to buy back your share? Very often they will have first refusal in any case. If you fail to pay your rent then the owner can issue possession proceedings and (in the worst scenario) you could lose everything. If you took out a mortgage to increase your share and failed to keep up repayments the bank could also seek possession, but you would be entitled to what was left after the property was sold.