Shared ownership vs renting

virgo149

geoffky wrote: »

share ownership is magic.....it tricks you into buying a overpriced house and all the risks.......it is for fools and fools only..

That's what I've always loved about this site - helpful, construction comments by those who obviously know far better than anyone else! :rolleyes:

geoffky

its a moneysaving site and the above advice will save you a lot of money and long term misery when you realize what a mistake you have made if you go ahead......do a search on here and you will find plenty of horror stories about shared ownership.....its a con...

i did not realize ....you are part of this con...

geoffky

[FONT=Arial, Helvetica, sans-serif][FONT=Arial, Helvetica, sans-serif][FONT=Arial, Helvetica, sans-serif][FONT=Arial, Helvetica, sans-serif][FONT=Arial, Helvetica, sans-serif][FONT=Arial, Helvetica, sans-serif][FONT=Arial, Helvetica, sans-serif]Will Shared ownership turn out to be a new nightmare?

Shared ownership has been billed as a route for first time buyers who otherwise would not be able to afford to step onto the property ladder, who will then be able to buy additional shares in their property as they increase their income.
All purchasers, from Blair downwards, buy to the limit of their income at the time of purchase and these days this can mean taking out mortgages of 6 times a joint income.
When incomes fail to rise, but frequently fall, the shared owner finds that the value of the un-bought shares continues to escalate whilst the shared owner is left standing on the bottom rung of a rickety step ladder and the dream of buying further shares fades at about the time when he wakes up to the first bill for major repairs.
When the bills arrive, examination of the small print shows that the fact that the shared owner only has a part share in ownership his liability to contribute towards major works is just as it would be if he owned 100%.
Just what does shared ownership buy you anyway? Most shared ownership schemes require that when the time comes to sell, that sale should take place through the landlord. A shared owner does not even have an asset that he can offer on the open market.

As a form of tenure there can only be one thing worse than owning a lease and is owning just a part of a lease!

http://www.leaseholder.org.uk/


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maestro2001

I'm a shared ownership success story. I posted on a thread recently-it should come up in a search. It was the best thing we could have done at the time as the maket was rising higher and higher (purchased 2000) and renting would have been insane. The type of property we could have afforded on the open market would not realistically have met our needs comfortably. Our rent was fairly stable. We purchased 100% freehold (long story!) in 2004, and then sold on the open market in 2007. There are some horror stories out there, but there are some successes too. I think that when it comes to resale now you are probably better never purchasing the 100% and just selling back to the housing association. Beware of shared equity schemes where you are made to purchase 100% after a set time (often 10 years) these aren't the same and I would be very wary of them.

nig0609

geoffky you really are against shared ownership!! 2 months I was very keen to get into SO until a few weeks ago when i started reading threads on here. Now I am very much against the idea, especially for new builds as they are so expensive - I have not seen 1 drop in price when house prices have dropped 15-20%

In crawley there are new flats going up with 2 bedrooms STARTING at percentages of £175,000, and if you want a parking then you have to pay another £10k!! Stuff shared ownership, im renting and saving for a big deposit on something sensible