shared ownerships your thoughts

ShugMonkey

We've been in a SO home for about 9 years now, and it was the only way at the time we could afford to get on the property ladder.

We moved home 5 years ago and made in the region of £60K on our share of our property.

We share our property with English Rural Housing, who charge no rent for their percentage share of the property. They're only criteria is that they are village hoems for village people, and the next person to own this home must come from our village.

The scheme is perfect for us, and was our only choice at the time.
I have no opinion on todays schemes as I don't know how they work.

There are 2 posters here who seem to glory in being rude rather than helpful.
What is the point in that?

Cat695

ShugMonkey wrote: »

We've been in a SO home for about 9 years now, and it was the only way at the time we could afford to get on the property ladder.

We moved home 5 years ago and made in the region of £60K on our share of our property.

We share our property with English Rural Housing, who charge no rent for their percentage share of the property. They're only criteria is that they are village hoems for village people, and the next person to own this home must come from our village.

The scheme is perfect for us, and was our only choice at the time.
I have no opinion on todays schemes as I don't know how they work.

There are 2 posters here who seem to glory in being rude rather than helpful.
What is the point in that?

We're pointing out its a mistake to do it NOW....you had the luck of house prices shooting up.

poppysarah

Cat695 wrote: »

We're pointing out its a mistake to do it NOW....you had the luck of house prices shooting up.

But even then every other house also goes up by a similar amount.

Graham_Devon

Theres some extremely ill informed people slating Shared Ownership on here.

Almost venimous in some of the posts. Which makes me wonder if they really don't like them for a personal reason.

I'm not going to go over the pro's and con's in a lengthy post again. There are con's, yes. But thats the same with any house. And in a falling market, my first bit of advice (as someone who bought shared ownership) would be to look at the market, look at your finances, and look to see whether you really need to move right now.

If the answer is yes, you need to move now, and you can only afford shared ownership, then its definately worth looking into.

If you do not have to move now or in the very near future, I would look (again, as someone who bought SO) at saving a deposit and hopefully getting the full house. This may however be impossible as someone like me, who was buying on one wage. You simply cannot make the multiples. Whereas SO allows you to make the multiples.

I would like to point out, that in a falling market, I can choose to buy another share of my home when prices have fallen. So the next share, if I wish to buy, will actually be cheaper than the share I first bought. So in a falling market, it actually opens up avenues that no other type of scheme does and becomes very attractive if you wish to continue living in your home for the forseeable future.

For the pro's and con's, from my view there is a couple of posts here

gabyjane

Wickedkitten wrote: »

You could almost say that if you can't afford to buy 100% of a house, then you can't afford to buy a house.

Not at all..firstly the mortgage repayments on propertys at our current time of buying were in the region of £800-900 per month for a house we wouldn't have been happy in, compared to our now £450 now. Lots of our friends did this and yes they may be buying the whole house as such but they are struggling, moaning and not having as nicer quality of life as we are which to us was important and still is. There is no way i would even dream of paying around those fees whole house or not AND we can purchase this house in full when we come into money anyway so job done.

llh189

Just to clarify there are a number of schemes that are available, all with pros and cons attached to them.

I am buying under my choice homebuy and yes I have read the small print!

I can buy from the whole of the market.

I get the property independently valued.

I can use my own FA.

I can get any type of mortgage.

The term of my mortgage is decided by me.

The equity loan is treated by my lender as a hefty deposit therefore am I am access the best mortgage deals on the market.

I pay back just the interest on the loan whilst I remain in the property at a very low rate, the percentage rise in the rate is capped year on year.

I do not pay rent on the amount of the house that I do not own.

I am able to make what changes to the property without consulting the HA.

My equity loan becomes repayable when I sell the property - the percentage taken is repayable regardless if the property value has risen or fallen.

There re no penalties payable should the value of my property fall.

I can sublet - i.e get a tenant if I choose.

I am not subject to any inspections from the HA.

Please feel free to pick all the holes you like in this - I would be very interested to hear them.

Cat695

llh189 wrote: »

Just to clarify there are a number of schemes that are available, all with pros and cons attached to them.

I am buying under my choice homebuy and yes I have read the small print!

I can buy from the whole of the market.

I get the property independently valued.

I can use my own FA.

I can get any type of mortgage.

The term of my mortgage is decided by me.

The equity loan is treated by my lender as a hefty deposit therefore am I am access the best mortgage deals on the market.

I pay back just the interest on the loan whilst I remain in the property at a very low rate, the percentage rise in the rate is capped year on year.

I do not pay rent on the amount of the house that I do not own.

I am able to make what changes to the property without consulting the HA.

My equity loan becomes repayable when I sell the property - the percentage taken is repayable regardless if the property value has risen or fallen.

There re no penalties payable should the value of my property fall.

I can sublet - i.e get a tenant if I choose.

I am not subject to any inspections from the HA.

Please feel free to pick all the holes you like in this - I would be very interested to hear them.

Its not us you have to convince

And always remember this.....you don't get ANYTHING for NOTHING in this life.

there is NOWAY that whoever gives you this money is not going to make some money from you.

llh189

Cat695 - I take it from the lack of detail in your last post that you are not overly familiar with the scheme that I am intending to use then, yet you still appear not to be able to accept that for some this type of scheme might be a good thing.

gabyjane

llh189 your scheme is very similar to our SO one, the only things different i could see to ours is..

I can sublet - i.e get a tenant if I choose....we have to ask and under certain circimstances this is fine but unlike a 'normal'! house we cannot just get someone in, tbh not interested anyway!

I am able to make what changes to the property without consulting the HA...we can do this but again have to ask certain major things..i.e loft conversion, we don't and won't need to do anything but have looked into a few things really just as we would like to but not the end of the world if not!

We had a pick of a good selction of mortgages and had a free IFA to sort for us all, no deposit needed (apart from £150 secured one) and solicitors of course..

all of yours is the same from what i can see which to us is fine!

CAT 696 no one in life gets anything for free, buying a house is probably the biggest one! least unlike renting we are getting SOMETHING even if it is not free!

smileykylie_2

Just wanted to thank everyone who has posted on this thread. I have been looking into something like this and it's good to hear from those who have actually done it.

The bit about not getting anything for nothing - I don't think anyone thinks this is happening, you still pay interest on your mortgage and the HA gets a share of the profit - noone on here indicating they are blind to that.