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DWhite
Posts: 232 Forumite
Hi! I'm currently saving for a deposit for a shared ownership place. My income isn't all that high (20k) and it will just be me paying for the house. I'm looking at buying something 1/2 Beds (ideally 2 so that my daughter can live with me). I live in a v expensive area so looking at paying around £45-£50K for this. Can anyone give me a rough idea of mortgage/rent and bills for that? I want to make sure I'm putting enough aside now each month to see how I can afford it when it happens. I'm currently putting £500 a month into savings for it. Which is just under half of my takehome.
The alternative is moving back to my hometown which is much cheaper to buy in and will pay around £30-35K for the same size property and my parent's helping Elizabeth th childcare.
I have a car on PCP which is £182 pcm, I know that's high! I'll be looking at downgrading to a cheaper car when it renews but that's not until May '18
The alternative is moving back to my hometown which is much cheaper to buy in and will pay around £30-35K for the same size property and my parent's helping Elizabeth th childcare.
I have a car on PCP which is £182 pcm, I know that's high! I'll be looking at downgrading to a cheaper car when it renews but that's not until May '18
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I can't help with running costs, but others on here might if you give an idea as to the type of property and approximate location.
On mortgage repayments, do a quick Google search for "how much can I borrow" and the relevant pages of the banks' websites will come up. No personal information so it can't mark your credit file. First it will show you how much they will lend you, then another click later it will show you how much that will cost under different products.
Good luck! And *high five* for being a fellow sole-saver.0 -
Thanks Bob, I decided it's easier to go to alone than rely on someone else. Then no matter what it's mine and I don't have to worry about another person being involved. If my partner wants to move in and help pay towards it after a while then he can, but I won't budget for it for now!
What I'm really after is an idea of what the bills will be like in a small one or two bed place. I'm pretty good at not having the heating on unless it's brass monkeys. Jumpers and blankets work well enough. Water and electricity shouldn't be crazy as I work 45-50 hours a week so not really home that much to use them! The websites I've looked at reckon mortgage and rent combined will be around the £4/500 mark. So I need to know how much on top of that is bills.
I can't get a second income, work is too full on for that. Overtime doesn't exist, it's just a salary and that's it. I can earn bonus but can't rely on it. So I really need a right budget to make this a reality! 0 -
Thanks Bob, I decided it's easier to go to alone than rely on someone else. Then no matter what it's mine and I don't have to worry about another person being involved. If my partner wants to move in and help pay towards it after a while then he can, but I won't budget for it for now!
What I'm really after is an idea of what the bills will be like in a small one or two bed place. I'm pretty good at not having the heating on unless it's brass monkeys. Jumpers and blankets work well enough. Water and electricity shouldn't be crazy as I work 45-50 hours a week so not really home that much to use them! The websites I've looked at reckon mortgage and rent combined will be around the £4/500 mark. So I need to know how much on top of that is bills.
I can't get a second income, work is too full on for that. Overtime doesn't exist, it's just a salary and that's it. I can earn bonus but can't rely on it. So I really need a right budget to make this a reality!
For what it's worth, I live in a one bedroom flat in Cambridge and my bills are as follows:- Council tax: £93 per month (10 months of the year; includes single occupier discount)
- Gas and electricity: £35 per month (averaged over the year)
- Water: £20 per month
- Fibre optic broadband and house phone: About £30 per month (will be moving at the end of the contract in January, otherwise would have paid line rental upfront!)
- Mobile: Well you'll know what you pay for this but mine is £27 per month
- Netflix: £5.99 per month
So an approximate total of £210 per month although the broadband/home phone element could (and will!) be cheaper.
The big one really is council tax, the level of which depends on where you live, which is why I raised that in my first post. There are also regional variations in gas/electricity/water. And there are things you can do to reduce the others, most of which you can find on the main site and these forums!
Hope that helps.0 -
That's brilliant, thank you for taking the time to break it down for me!0
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Also think about building insurance, we pay £8.28 and contents insurance £5,55
The TV licence is £12.12 pcm0 -
I must admit to thinking "Crikey that's cheap" at your comment of £45k-£50k for a place (but I'm from Southern England). I guess that translates into buying half the house - so the actual cost of the house would be £90k-£100k if you were buying all of the house?
Am I figuring this out correctly as:
- paying mortgage on 50% of the house
and
- paying rent on the other 50% of the house?
I think my main concern, in your position, would be what happens about inflation rises on the rent part of the payment. How often rent rises would happen and what criteria did the HA use to establish what they would put them up by.
Closely followed by what would happen re my buying the "rest of the house" if/when I could afford it? I'd be checking to see how things worked out re whether the Housing Association (?) would be able to charge me more than a fair amount for the remaining proportion of house (eg they could say the rest of the house was worth £70,000 for instance to buy - when the whole house would be worth £100,000 on the open market sold as a standard house and you owned half of it already - so were only due to have to pay £50,000 for the rest iyswim).0 -
Also, find out whether the HA will pay half of costs for repairs to the fabric of the house as you are paying rent to them.
One of my daughters was caught out by this :mad:Not dim
.....just living in soft focus 
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Doveling, most around here seem to have a service charge which I imagine is in place to deal with such issues as maintenance.
MTSTM, most of the shared ownerships around here are 30% shares, for quite small spaces! Though a move back to my home town would give me a 2/3 bed house and 50% share! I'm in the South East as well, in a small pocket of v expensive living. I believe and could be wrong that the rent prices would be fairly stable. More likely that the mortgage would go up with inflation. In terms of buying more shares it's possible to do that incrementally so I could buy small chunks at a time should I wish to. Though my long term plan is to save enough and get enough equity to move on and eventually buy outright somewhere else.0 -
Doveling, most around here seem to have a service charge which I imagine is in place to deal with such issues as maintenance.
MTSTM, most of the shared ownerships around here are 30% shares, for quite small spaces! Though a move back to my home town would give me a 2/3 bed house and 50% share! I'm in the South East as well, in a small pocket of v expensive living. I believe and could be wrong that the rent prices would be fairly stable. More likely that the mortgage would go up with inflation. In terms of buying more shares it's possible to do that incrementally so I could buy small chunks at a time should I wish to. Though my long term plan is to save enough and get enough equity to move on and eventually buy outright somewhere else.
Please don't think service charge relates to maintenance of the property you are purchasing, it doesn't
Shared ownership means you are liable for the upkeep of your property -totally.
Service charge is for communial areas only
So your boiler breaks, you have a burst pipe, a loose roof tile, it's down to you
( my first home was shared ownership)
Rents go up every year. Your mortgage will increase/ decrease dependent on interest rates. But your rent on the HA share will increase yearly no matter what happens to interest rates
Every time you wish to buy a bigger share, you yourself have to pay for an independent valuation from a surveyor ( not an EA ). Obviously your property should have increased in value so whilst your first 50% may be 50k, in a few years the next 50% might be worth £70k so another 25% will mean a remortgage of £85k ( less any inroads on the original mortgage )
You can not buy small chunks. If you buy 50% first, then you can either buy two more chunks at 25% or one more at 50%
Every increment you buy, you pay all the costs, for your solicitor and mortgage company plus the HAs
Do seriously think long and hard about going this route
Selling, well that's another kettle of fish altogether, with the odds loaded to the HA0 -
we are in a shared ownership property - we purchased a 50% share for 70k. we can but the remaining 50% share in increments that must be a minimum of 10% but as suki says we must pay for the survey etc each time so our plan is to save whilst paying the current rent/mortgage then when we have a decent chunk and some of the current mortgage paid off we will look to buy the rest.
if we wish to sell up and move on we have to give first refusal to the HA who have a set period (very short I think its a week or maybe two) to find someone who wants our 50% before we can go to the market.
as a new build we won't pay a service charge until the developers/builders have left the site but then its about £100 a year or there abouts
we have to ask permission to put up sheds above a certain size, to change any landscaping and to put up satellite dishes etc should we wish to - it costs £25 per request so do consider that
we will remortgage in 2 years (once we can) to a more stable rate. so also look at that too
we are in a three bed and with the disable residents reduction (Husband is a full time wheelchair user) is £110 per month
we are spending about £40 per quarter on water and similar on gas/electric however we have a bio-ethanol fireplace which we've put in the lounge and once that room is warm we open the door and the heat moves to the rest of the house. an initial outlay of £500 or so but it includes a mantel etc giving a focal point which a new build lacks and now costs about £1.30 for 4 hours burning
as a new build we are basically tied to virgin media - they have a deal with barretts to pre wire the houses and we are so far from the exchange that on moving our Sky dropped to 1-2mps and we can't get any other provider due to speeds/availability so that's costly
Maintenance is entirely our problem, we've had our 12month check and some problems rectified so we're 'on our own' pretty much with that now************************************
Daughter born 26/03/14
Son born 13/02/210
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