We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
shared ownership
newmum1
Posts: 1,341 Forumite
just wondered if anybody things this is a good idea or not i cant afford to buy and think that this is my only option, just a bit worried about the long term implications i.e paying over the odds for the second 50% or never being able to buy the 2nd half, also the rent payments....................
0
Comments
-
good idea - I have one myself.. the downfall really is the option to buy the other 50% - it all depends on the market price of the house, if its higher you will pay more for the other half and if it ever goes lower that the market price at the time you paid for it then its cheaper
The snag next is pay out for vaulition (£100+Vat) and staircasing fee (£150+vat) - something to budget for when want to purchase next part.
(Hoping that house prices do go down!)
Mike0 -
Hi
The government allows you to rent out a room in your home and earn up to £4,250 a year without paying tax. That equates to roughly £80/week or £350(ish)/month
http://www.hmrc.gov.uk/manuals/pimmanual/pim4001.htm
that should cover a good portion of a mortgage
Phil0 -
to carry on from my previous post, that may be enough so you can go it alone with the mortgage and not have to think about getting anyone else on it.0
-
Also don't forget that there are very few lenders these days who will advance the full 100% of the share you are buying. The vast majority will want at least 5% deposit of your share. EG
Value £100,000
Your share £50,000
Deposit needed £50,000 x 5% = £2,500.
Lambeth building society are one of the very few who will advance the full 100% of your share.
Talk to a Local Advisor or Broker to get some exact figures.
Hope this helps
Andy0 -
I am also on this scheme and i think it is excellent, i can't see any down sides. I got a 100% mortgage on my share from kent relliance. Hope this helps.
NeilHi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
Ok, we have had S/O for 7 years now.
We had a choice, buy this or be homeless... we chose this, its ok but there are many pit falls. Ours is a 1970s that needed loads of work done, over the yrs we have spent 1000s on stuff, from double glazing to new bathrooms.
Up until feb this yr we would of got the increase for anywork we have done, then without warning our H/A changed the rules.. we have lost money because of this.
S/O is aprox 25% cheaper than the open market for the same house.
We are currently over crowed but are classes as owners so no help from the council, our H/A dont want to know and nor do any other H/A
S/O is IMHO S/O should be used as a last resort, but beats being homeless.
On the up side if you buy a share now and then in a few yrs time buy another share the house will be valued at the then market rate, but thats not the same price that an estate agent would value it, its what a valuer would value it at which is less than the price it would be with an E/A.
However that works againt you if you decide just to sell your share in the house as the H/A set the price and decide who can buy it.
I would say that if you have the chance of a brand new S/O that would be a better buy as you would not need to spend money on doing it up, however you will find out that the resales are cheaper.
Like everything there are good points and bad point.
Good luck
VxxDebt free and plan on staying that way!!!!0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.2K Banking & Borrowing
- 253.6K Reduce Debt & Boost Income
- 454.3K Spending & Discounts
- 245.3K Work, Benefits & Business
- 601K Mortgages, Homes & Bills
- 177.5K Life & Family
- 259.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards