Shared Ownership, is it a good idea?

nkeaney · 27 March 2013 at 5:28PM

Hello,

My name is Nicola Keaney from ITN. We do the news for ITV and are looking for first time buyers interested in shared equity/ownership. We want to find out if the scheme is actually going to help people and follow your progress as you look into the scheme and try and use it. We are also interested in talking to people about why they want to use the scheme and how it will change their circumstances.

If that’s something that applies to you then please give me a call on 07903 757811 or email me.

Best regards,

Nicola Keaney
ITN Business Desk

PasturesNew · 27 March 2013 at 5:38PM

The problems we see on this board are not with the people buying, or that they're over-priced, or that you're paying 100% of the upkeep. The problems lie in the future: when you try to sell them.

Some people have found it's worth a lot less when they need to sell (it's no longer brand new and/or brand new ones are the same price/cheaper); the rules around who you are allowed to sell to mean there's a 0 person market available to buy it .... and other complications.

Buying them's easy ... the problem comes when stuff happens/changes and you want/need to move out.

brit1234 · 27 March 2013 at 7:39PM

nkeaney wrote: »

Hello,

My name is Nicola Keaney from ITN. We do the news for ITV and are looking for first time buyers interested in shared equity/ownership. We want to find out if the scheme is actually going to help people and follow your progress as you look into the scheme and try and use it. We are also interested in talking to people about why they want to use the scheme and how it will change their circumstances.

If that’s something that applies to you then please give me a call on 07903 757811 or email me.

Best regards,

Nicola Keaney
ITN Business Desk

As a first time buyer I would urge everyone to avoid shared ownership and equity properties as they are a scam to keep house prices inflated.

See the thread below and do research into the bad elements, there are many.

http://forums.moneysavingexpert.com/showthread.php?t=3177256

kahgwreiuahf · 28 March 2013 at 9:25PM

I appreciate that shared ownership isn't for everyone, but in the right circumstances I think it is a good thing. I bought 25% of a flat just over a year ago, with a mortgage rate (base rate tracker) of 2.7% and unlimited overpayments.

The rent and service charge payments combined with the mortgage are low enough to allow me to greatly overpay my mortgage - to the extent that I'm on target to pay off my 25% completely in the next 3-4 years... I will then have 25% equity (c.£45k) as a deposit on a normal house purchase. Regardless of possible price falls and the palaver of selling, I still see this as a significantly better position than I would have been if I'd continued renting without having any spare income to save for a deposit.

Don't dismiss shared-ownership immediately - I love my flat, and seeing my mortgage reducing rapidly and my equity increasing is incredibly gratifying!

fionajbanana · 29 March 2013 at 12:42AM

I have a s/o flat. Reason is that with my salary isn't enough for a 2 bed property. Plus if I did borrow the max, I would have just £20 a month for food, entertainment etc which no-one can live like that.

As my parents moved 8-9 months now, they have decided to buy me 20% of the HA share, making it 70/30 in my favour and getting a cheaper deal

kingstreet · 29 March 2013 at 10:02AM

mic69 wrote: »

Would i be able to put my partners name down as owning the house with me?

No. You can't.

Sole lease, sole mortgage, sole ownership.

Loopylou1802 · 12 April 2013 at 12:42PM

In my opinion, they can be good under the right circumstances. They seem a lot better now.

Myself and my Husband brought into one over 6 years ago before regulations came in to say no more than 3% of the unpurchased equity could be charged for the initial monthly rent. We are paying 4.36% and seems that we can not do anything about it with rent increases every year. We are trying to sell but are finding it difficult to find someone that can actually afford it.

At the time we were so pleased to be able to buy it because we couldn't get a mortgage for a full house. But if we knew then what we knew now, I'm not sure if we would have signed.

Saying that though, if you are in a house that you love and can't see yourself moving and can afford to buy the other half, go for it. Just make sure you read the lease details closely. Your still in a position to negotiate terms of the lease before you sign and make sure your happy with it.

Loopy

Carl31 · 12 April 2013 at 12:50PM

part buy part rent
take the worst bits of both means of living arrangement, Buying and selling, and put them together. The rent, interest and service cost eats away any value in the equity put in, plus you are also liable for the entire maintenance and up-keep of the property, whilst the other part owner benefits from your efforts, plus receives rental income
Would not touch it with a barge pole

TBSC5000 · 21 October 2014 at 9:11AM

Good Morning!

I am in a similar position to alot of people on here (looking to get my first property in my local area) and would appreciate some advice.

I have savings of £29,000, which would need to include any legal fees of buying. Properties in my area are roughly £180,000 - £200,000 for a decent value 1 bedroom flat, meaning my deposit would be around 25,000/190,000 *100 = 13%

Buying 100% of a property would be more expensive per month, but I am thinking that taking that option would allow be to (potentially) benefit from the value of my property increasing. On the other hand, shared ownership would be alot cheaper in the short term, but i've heard it can be difficult once you are in the scheme (repairs/upgrades/sales) etc.

Any advice appreciated

aileth · 21 October 2014 at 11:05AM

If you can afford it, always buy outright. We live in a shared ownership and it's been perfect for us. We are in no rush to sell and quite happy to live here for a good few years. There's been very tiny increase in the rental part over the 4-5 years we've been here. We had no end of problems with landlords, so it's great having the security. Our next door neighbours tried to sell after 3 years at the property and it has been on the market for over a year now. Reselling is definitely an issue.

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Shared Ownership, is it a good idea?

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