Hopefully first time buyer looking at shared ownership

robin_banks

Halifax 95% LTV, though expect this to be 90% LTV in next few days

robin_banks

Halifax 95% LTV, though expect this to be 90% LTV in next few days.

Abbey 90% LTV, £2499.00 fee :huh:

robin_banks

Ipswich 90% LTV, fees £400-ish

andyfrombrum

After reading a hell of a lot on this now, and after some quite heated debates between myself and my partner, we have decided that at the moment we are going to shy away from this purchase.

Only after many phone calls to the HA were we able to find out they would only allow the purchaser to eventually buy 80% of the property.

No idea why they want people to spend so much money for something they will never completely own :-S

koexelek

andyfrombrum wrote: »

After reading a hell of a lot on this now, and after some quite heated debates between myself and my partner, we have decided that at the moment we are going to shy away from this purchase.

Only after many phone calls to the HA were we able to find out they would only allow the purchaser to eventually buy 80% of the property.

No idea why they want people to spend so much money for something they will never completely own :-S

Not only that. A lot of lenders would not be happy with that sort of condition and would not lend anyway

hethmar

andy, have a look around for a flat you can buy without this shared ownership stuff - it sounds a con to me, they get you to look after a place for years and then you have to divvy up any increase in price with them.

You are earning a decent amount between you. Have a look on findaproperty and some of the other house sites.

mic200202

andyfrombrum wrote: »

After reading a hell of a lot on this now, and after some quite heated debates between myself and my partner, we have decided that at the moment we are going to shy away from this purchase.

Only after many phone calls to the HA were we able to find out they would only allow the purchaser to eventually buy 80% of the property.

No idea why they want people to spend so much money for something they will never completely own :-S

I would observe this - ok, its only max 80% equity, but heck that still 80% more than nought.You are only taking an max 80% risk with the property too,if you start lower than 80% thats an even lower risk.

willsonline

I had an interesting call from a local HA in my area last week, informing me that they had lowered their prices by £10,000.

1 bed flat now for £120,000. I told the HA to go do one, quick frankly, they are still overpriced.

And as others have said when it comes to the lenders valuation it is vastly different.

HA' s should be here to help those who need it, not rip them off.

robin_banks

Willsion did the same yesterday, we were looking at purchasing 25% stake based on market value of £285000, applied for mortgage - approved subject to valuation - their valuation came in at £250000, and then told us to go to another lender, the HA had the property revalued at £275000 so the value fell by 3% in the last 3 months !!!!, not preoapred to pay over the odds, simple as.

gazareth

Conrad wrote: »

Can be difficult to obtain finance on these for a variety of reasons. Only a few lenders lend on SO and thier criteria is very strict.

Halifax
Abbey
Saffron
Ipswich

These are the main 4 as far as I recall

I have an SO mortgage from Woolwich, and I got it 100% of the LTV for my share. The fixed rate was pretty high (6.39% in June 2007), to the point that when my fixed rate deal expires next summer, the monthly payments will be lower because the variable rate is lower at the moment :rolleyes: