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  • FIRST POST
    • Snowflake101
    • By Snowflake101 19th May 17, 3:39 PM
    • 25Posts
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    Snowflake101
    Shared ownership without mortgage query
    • #1
    • 19th May 17, 3:39 PM
    Shared ownership without mortgage query 19th May 17 at 3:39 PM
    I have tried to google the answer to this without any success. Is it possible to apply for a shared ownership house and pay the whole of the share (25% or whatever) in full without having to get a mortgage?

    Our situation is that neither of us are able to work. My spouse may eventually recover enough to do some work but that is at least 6 years away and would be of a very lowly paid nature so obtaining a mortgage will not be an option for us. We would love to be able to stop privately renting as it is expensive and we would like to be able to decorate and make a house a real home and we have never been able to find anywhere we can get permission to decorate.

    We have family that would like to give us a lump sum big enough for a 25% share. I can only find information on shared ownership with a mortgage though. Can anyone advise if you can proceed in this way? We have enough saved for solicitors fees and moving costs etc already.
Page 1
    • kingstreet
    • By kingstreet 19th May 17, 3:42 PM
    • 31,723 Posts
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    kingstreet
    • #2
    • 19th May 17, 3:42 PM
    • #2
    • 19th May 17, 3:42 PM
    I've known at least one HA permit it where we were required to confirm the applicant would be unable to secure a mortgage.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • Bonniepurple
    • By Bonniepurple 19th May 17, 9:48 PM
    • 84 Posts
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    Bonniepurple
    • #3
    • 19th May 17, 9:48 PM
    • #3
    • 19th May 17, 9:48 PM
    We bought our 25% share outright (inheritance). When we sold, our buyers bought the 25% outright.
    • Rosieandjim
    • By Rosieandjim 20th May 17, 8:15 AM
    • 60 Posts
    • 73 Thanks
    Rosieandjim
    • #4
    • 20th May 17, 8:15 AM
    • #4
    • 20th May 17, 8:15 AM
    I also understand that the housing association will do a financial assessment on you to ascertain if you will be able to keep up the payments for the rental/service charge. You will have to factor in rises in rent/service charges and that you are fully responsible for the maintenance of the property.


    Would you be better off applying for either housing association or council property where you would have a secure tenancy and all maintenance paid for by the landlord?


    Not sure from your post why you cannot work but I would think this would have a negative bearing on you getting a shared ownership property, however, I may be wrong.
    Last edited by Rosieandjim; 20-05-2017 at 8:20 AM.
    • csgohan4
    • By csgohan4 20th May 17, 8:25 AM
    • 3,636 Posts
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    csgohan4
    • #5
    • 20th May 17, 8:25 AM
    • #5
    • 20th May 17, 8:25 AM
    don't forget you are liable 100% for all maintenance costs such as boiler breakdowns, roofing e.t.c, a new boiler can cost more than 1k
    "It is prudent when shopping for something important, not to limit yourself to Pound land"
    • usefulmale
    • By usefulmale 20th May 17, 10:52 AM
    • 2,292 Posts
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    usefulmale
    • #6
    • 20th May 17, 10:52 AM
    • #6
    • 20th May 17, 10:52 AM
    don't forget you are liable 100% for all maintenance costs such as boiler breakdowns, roofing e.t.c, a new boiler can cost more than 1k
    Originally posted by csgohan4
    Maintenance of the roof is often covered via the service charge you pay the HA. Check with the HA.
    Originally Posted by MSE Forum Team
    We’ve had to remove your signature because what you wrote was true and sensible and there's no room for that here.
    • csgohan4
    • By csgohan4 20th May 17, 10:58 AM
    • 3,636 Posts
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    csgohan4
    • #7
    • 20th May 17, 10:58 AM
    • #7
    • 20th May 17, 10:58 AM
    Maintenance of the roof is often covered via the service charge you pay the HA. Check with the HA.
    Originally posted by usefulmale


    But if you own 50%, your service charge is not 50% either and your assuming they have a big enough sink fund.
    "It is prudent when shopping for something important, not to limit yourself to Pound land"
    • usefulmale
    • By usefulmale 20th May 17, 11:23 AM
    • 2,292 Posts
    • 4,202 Thanks
    usefulmale
    • #8
    • 20th May 17, 11:23 AM
    • #8
    • 20th May 17, 11:23 AM
    But if you own 50%, your service charge is not 50% either and your assuming they have a big enough sink fund.
    Originally posted by csgohan4
    In our case, the roof is covered via building insurance (paid via either rent or service charge, I can't recall right now), same as you may use when you fully own. I think Zurich (in our case) will have a more than adequate 'sink fund'.
    Originally Posted by MSE Forum Team
    We’ve had to remove your signature because what you wrote was true and sensible and there's no room for that here.
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