Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Peter white
    • By Peter white 9th Jun 17, 7:18 PM
    • 2Posts
    • 0Thanks
    Peter white
    Shared ownership.
    • #1
    • 9th Jun 17, 7:18 PM
    Shared ownership. 9th Jun 17 at 7:18 PM
    Hi, my son wants to buy a property by shared ownership for about 220k, but has no funds. We can give him money for deposit say £20k, he can get a mortgage about 50% of the property but will not be able to afford to pay the extra costs of rent on the remaining 50% plus all the associated costs. Can we give him less deposit and over the first 3 years give him money to pay the extra rent etc.? Would mortgage companies allow this ?
    Is there a better way around this dilemma.
Page 1
    • BrassicWoman
    • By BrassicWoman 9th Jun 17, 9:03 PM
    • 1,229 Posts
    • 4,880 Thanks
    BrassicWoman
    • #2
    • 9th Jun 17, 9:03 PM
    • #2
    • 9th Jun 17, 9:03 PM
    Sounds like he needs to cut his cloth to suit his wallet I am afraid. What does he earn, what does he have saved, and what are flat prices like where you live? (Does he really need a house??)
    May GC £215/£50 (oops)
    April 2016 GC: £24.09/ £20
    • Islandmaid
    • By Islandmaid 9th Jun 17, 9:17 PM
    • 2,087 Posts
    • 31,613 Thanks
    Islandmaid
    • #3
    • 9th Jun 17, 9:17 PM
    • #3
    • 9th Jun 17, 9:17 PM
    OP - try posting here

    http://forums.moneysavingexpert.com/forumdisplay.php?s=&daysprune=&f=15

    Old Style is more about money saving within the household etc
    Note to self - STOP SPENDING MONEY !!


    June GC £250/£75.00
    • jackyann
    • By jackyann 10th Jun 17, 10:38 AM
    • 3,001 Posts
    • 5,601 Thanks
    jackyann
    • #4
    • 10th Jun 17, 10:38 AM
    • #4
    • 10th Jun 17, 10:38 AM
    I agree about posting elsewhere, but will add: all of us caution against getting in over your head with financial commitments. Whether the mortgage provide would allow it, would depend on how they assess his finances.
    It sounds as if you, yourselves, have little capital, and would rely on your income to top up your son's payments. This is not completely daft, but you need to consider:
    the alternatives (as suggested)
    how secure are your jobs?
    how secure is your health, and what would happen if you became unable to work, or died?
    What changes in 3 years to make this more workable?
    What is the 'fallback' position?

    One of my family did something similar, in a situation where:
    renting was difficult, commuting unsustainable (unusual job)
    parents were in good health with secure jobs
    3 years (same timetable!) would see a significant rise in income

    It worked, but it was a gamble!
    • zippychick
    • By zippychick 10th Jun 17, 12:48 PM
    • 9,211 Posts
    • 17,378 Thanks
    zippychick
    • #5
    • 10th Jun 17, 12:48 PM
    • #5
    • 10th Jun 17, 12:48 PM
    Hi there, i've moved this to a Specialist board for you. Good luck with it all
    Zip

    MOVING THREADS FOR BETTER RESPONSES

    Hi, we move threads if we think they’ll get more help elsewhere (please read the forum rule) so this post/thread has been moved to another board. If you have any questions about this policy please email forumteam@moneysavingexpert.com.
    I'm a Board Guide of Old Style MoneySaving, The Northern Ireland board,How Much Have you Saved? and Martin's Blogs.
    This means I'm a volunteer to help the boards run smoothly and can move and merge posts there. However, do remember that Board Guides don't read every post. If you spot an inappropriate or illegal post then please report it to forumteam@moneysavingexpert.com. It is not part of my role to deal with reportable posts. Any views are mine and are not the official line of MoneySavingExpert.
    New to the Forum? Why not watch the Guide?
    A little nonsense now and then is relished by the wisest men
    Norn Iron club member #380

    • getmore4less
    • By getmore4less 10th Jun 17, 12:57 PM
    • 28,820 Posts
    • 17,242 Thanks
    getmore4less
    • #6
    • 10th Jun 17, 12:57 PM
    • #6
    • 10th Jun 17, 12:57 PM
    His entry plan requires support for deposit and running costs.

    What does the exit plan look like?

    Without one that is viable expect to be paying into this for a long time.
    • csgohan4
    • By csgohan4 10th Jun 17, 8:24 PM
    • 3,497 Posts
    • 2,184 Thanks
    csgohan4
    • #7
    • 10th Jun 17, 8:24 PM
    • #7
    • 10th Jun 17, 8:24 PM
    buy a house when he can afford to do it by himself and live within his means. 220K with him having no savings is not a good start.
    "It is prudent when shopping for something important, not to limit yourself to Pound land"
    • Peter white
    • By Peter white 13th Jun 17, 8:51 PM
    • 2 Posts
    • 0 Thanks
    Peter white
    • #8
    • 13th Jun 17, 8:51 PM
    • #8
    • 13th Jun 17, 8:51 PM
    Thanks for your replies. Yes he is not making the right decisions. But you want to help your children. Some of the replies made me smile. l need to find a resolve and it appears he will have to think ahead as he is the driver of his own fortune. He will need to think how he can make this happen with maybe a small assist from me. He is in a very good job with a poor salary but his lack of vision many years ago has now left him possibly now missing the boat on home ownership. Thanks again
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

4,270Posts Today

9,981Users online

Martin's Twitter