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Co-Ownership?

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  • Looks like I`ve started a little debate here!!!
  • leftieM
    leftieM Posts: 2,181 Forumite
    Part of the Furniture Combo Breaker
    It doesn't take much to get me started on anything vaguely related to house prices!
    Anything to avoid the housework ;).
    Stercus accidit
  • leftieM
    leftieM Posts: 2,181 Forumite
    Part of the Furniture Combo Breaker
    leftieM wrote:

    Uptake of the Northern Ireland Co-ownership Housing Association product has reduced recently. Consideration should be given to extending or abolishing co-ownership housing value limits, to the scope for reducing the current rent level (2.75%) and to entry to the scheme at a lower level. The Northern Ireland Co-ownership Housing Association might be permitted to purchase on a rolling basis a stock of homes for selling through co-ownership.
    Just to add - I happened upon a leaflet about co-ownership today and I get the bit about rent level dropping (I didn't know what it meant before). They currently charge you £27.50 a month for every £1000 that you owe them. They are talking of dropping this to a lower amount which is great news for co-owners!

    edit - of course it's £27.50 a year rather than a month or else it would be a pretty expensive option!!
    Stercus accidit
  • leftieM wrote:
    Just to add - I happened upon a leaflet about co-ownership today and I get the bit about rent level dropping (I didn't know what it meant before). They currently charge you £27.50 a month for every £1000 that you owe them. They are talking of dropping this to a lower amount which is great news for co-owners!

    Cheers for all the input and the rest of the folks.

    I was considering co-ownership but now not so sure. Seems like a bad move in the long run. 'nothing's free it's all in the price' ......is'nt that what they say?
  • Thanks again for the input...It s been said before, that it all depends on what way you go about it , and how much you want to buy, when you plan to buy it out etc.,
    We used co-ownership in 1990 as first time buyers and after 3 years we bought it out when the interest rates started to drop and we knew it made sense to buy back the rest.(by that time it was eventually goin to be a loss leader to us cos the rates dropped and the extra mortgage payments would beslightly more than the rent)But it was a good step on the ladder and we couldnt have afforded a home without it.
    This time is a bit different for us, but still (when I look into the new figures they give out) it has the potential for us to get started again...When I find out more I`ll maybe post those figures for youse all to have a look at!
  • LMac
    LMac Posts: 274 Forumite
    Part of the Furniture Combo Breaker
    Hi everyone. Im TRYING to get on the property ladder too. As a single mum working part time (being at home with dd is more important to me than a house just at the moment-when shes starts school I intend to go full time) Anyway, I can only get a mortgage for £60k - I rent from council at moment and a flat exactly the same as mine just sold for £115k across the road - its ok size but no garden, which I reeeaaaalllyy want. Co-ownership seems like my only hope, and even then, the £130k limit wont get me a house. Anyone know of any other "schemes" that can help?

    Considered waiting another 19 months and trying to buy the council flat Im in, but believe you need to be in it a while before you can sell it..few years?..otherwise you need to pay the discount back and that means its not really worth it.

    Obviously, Im already using this site loads to help me make the right decisions with the savings I do have!
  • I used co-ownership back in 2000, I was single and had just left uni earning a huge £11k, meaning I could afford £33k of a mortgage. With co-ownership I was able to buy a property at £50k and I had every intention of buying the out as soon as I could. Luckily my wages increased quickly and 2 years later I bought the house outright. My house which was £50k then is now aroufn £200k.

    If your house was £100,000 and you went 50/50 with co-ownership and it increased in value by (to make things easy) 10% - you share is now worth £55000 and co-ownerships is worth £55000 - YOU SHARE STILL INCREASES IN LINE WITH THE MARKET TOO I.E. YOU WOULDN'T HAVE TO PAY £60000 TO BUY OUT CO-OWNERSHIP, and then it's less any mortgage payments made but plus the 'rental' payments you've made to co-ownership.

    Also if you make improvements to you home i.e. fit a new kitchen that add to the value then these are increases are added ONLY to your share and are taken off the increases on the co-ownership share, I hope I explained that right.

    You also do not have to buy out co-ownership, you call just sell your whole share and take any profit (or loss).

    The tricky part in making sure the valution when you want to buy out co-ownership is <ahem> in your favour <ahem>
  • Hi and thanks
    LMAC - keep an eye here - the review is out soon and we`ll all be interested to see what its going to change!!!
    XLR8R thanks for that, maybe others can see the advantages before knocking it completely.:-).
  • crispqueen
    crispqueen Posts: 75 Forumite
    Just to update - I read that its 8th March...but it could take a while before somethings announced!
  • leftieM
    leftieM Posts: 2,181 Forumite
    Part of the Furniture Combo Breaker
    I see that the same report may recommend reducing the discount when you buy your council house. Good!
    Stercus accidit
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