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  • FIRST POST
    • Mr_Curious
    • By Mr_Curious 14th Jun 17, 11:22 AM
    • 65Posts
    • 4Thanks
    Mr_Curious
    Shared Ownership Experiences
    • #1
    • 14th Jun 17, 11:22 AM
    Shared Ownership Experiences 14th Jun 17 at 11:22 AM
    Hi Guys,

    I'm looking for peoples experiences of shared ownership properties. Typically NOT new ones. Due to a change in my circumstances I find myself looking for a place to live. Buying outright by myself is not an option unfortunately. However shared ownership is.

    What are the pros and cons of this type of arrangement. I have done a good bit of research into this but I'm looking for first hand experiences just so I am not over looking anything.

    All replies appreciated.

    Thanks in advance,

    Mr_C
Page 1
    • wordsearch
    • By wordsearch 14th Jun 17, 2:02 PM
    • 90 Posts
    • 28 Thanks
    wordsearch
    • #2
    • 14th Jun 17, 2:02 PM
    • #2
    • 14th Jun 17, 2:02 PM
    We went with a five year old shared ownership flat, and are very happy with it. It's a two bedroom flat in London and we pay much much MUCH less than we were paying to rent, and less still than if we had a full mortgage.

    The downsides are that we don't know how much service charge is going to be each year though to be fair that is true with any apartment with a service charge - and in our case, it hasn't actually changed, so isn't actually a problem. The communal garden isn't the best cared for and I don't quite see where the money for that has gone, but again that's not really shared ownership specific.

    You're limited in where will give you a mortgage and our bank were a massive pain.

    But, we have a flat that we like for a price that we can afford and we get all the joys of painting and renovating (redecorating at the moment!) it as we see fit!
    • teddysmum
    • By teddysmum 14th Jun 17, 3:05 PM
    • 8,504 Posts
    • 5,032 Thanks
    teddysmum
    • #3
    • 14th Jun 17, 3:05 PM
    • #3
    • 14th Jun 17, 3:05 PM
    We went with a five year old shared ownership flat, and are very happy with it. It's a two bedroom flat in London and we pay much much MUCH less than we were paying to rent, and less still than if we had a full mortgage.

    The downsides are that we don't know how much service charge is going to be each year though to be fair that is true with any apartment with a service charge - and in our case, it hasn't actually changed, so isn't actually a problem. The communal garden isn't the best cared for and I don't quite see where the money for that has gone, but again that's not really shared ownership specific.

    You're limited in where will give you a mortgage and our bank were a massive pain.

    But, we have a flat that we like for a price that we can afford and we get all the joys of painting and renovating (redecorating at the moment!) it as we see fit!
    Originally posted by wordsearch
    Don't forget future bills for maintenance that you are responsible for.
    • teddysmum
    • By teddysmum 14th Jun 17, 3:06 PM
    • 8,504 Posts
    • 5,032 Thanks
    teddysmum
    • #4
    • 14th Jun 17, 3:06 PM
    • #4
    • 14th Jun 17, 3:06 PM
    IP,continue your extensive search in here , as there are lots of threads on the topic.
    • IAmWales
    • By IAmWales 14th Jun 17, 3:21 PM
    • 1,616 Posts
    • 3,321 Thanks
    IAmWales
    • #5
    • 14th Jun 17, 3:21 PM
    • #5
    • 14th Jun 17, 3:21 PM
    My first property was SO. It allowed me to buy in an area I couldn't otherwise afford. The rent + mortgage was far cheaper than full rent or mortgage on an equivalent house. Rent increases were inflation linked. When I sold I was allowed to do so on the open market and the first viewers bought it. It was sold (and purchased) at a fixed price, which I liked as it takes out any uncertainty.

    One recommendation would be to get a good, local solicitor, so they can go through the lease with you. That way there are no nasty surprises later.
    • wordsearch
    • By wordsearch 14th Jun 17, 4:13 PM
    • 90 Posts
    • 28 Thanks
    wordsearch
    • #6
    • 14th Jun 17, 4:13 PM
    • #6
    • 14th Jun 17, 4:13 PM
    Don't forget future bills for maintenance that you are responsible for.
    Originally posted by teddysmum
    Yes, well done. Believe it or not, we were aware of these.
    • saajan_12
    • By saajan_12 14th Jun 17, 5:32 PM
    • 953 Posts
    • 647 Thanks
    saajan_12
    • #7
    • 14th Jun 17, 5:32 PM
    • #7
    • 14th Jun 17, 5:32 PM
    Haven't done it myself, but here's a few pitfalls of shared ownership to be aware of


    1) Worst of both worlds (renting / owning) in a sense: can't just move on a months notice as you can with renting, but not all yours to do as you please with freehold ownership.

    2) Will the SO company contribute to maintenance / repairs / improvements? If not, you're paying 100% of costs for 50% of the property value gain.

    3) Restrictions on who you can sell to (limited to the SO market, and you may have to give first refusal to the company). This can limit how much you get back, and increase timeframe if you need to move on due to life changes.

    4) IF you are expecting life changes, remember house buying/selling is expensive and stressful, so any money saved over renting outright can be lost if you have to move within a couple of years.

    5) Rent portion can be increased, knowing you are fairly 'locked in' as it's a big hassle for you to move and sell your share.

    6) Price of the remaining 50% share can be increased knowing you are fairly 'locked in' to wanting to staircase up on the same property.
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