Shared ownership

joel10873

No i am initially moving on in the rent to buy scheme for various reasons

1) i want to get moved as soon as possible to pay less each month as the rental on the house i currently have is high

2) hubby is self employed and i am waiting on this years accounts being finalised to have more accurate figures for mortgage pricing and application

3) if i cant get a mortgage straight away at least i am in a cheaper place to increase my deposit and my bankruptcy will be off my credit report in the not too distant future

i am aware the down side to this is that the house price may well increase by the time i come to buy however i am not tied in to buying the house once i am in it so if the price does go up to much once the bankruptcy is gone i have mroe options

also these schemes and houses dont hang around forever and there is only one plot i am interested in so to ensure i get the plot i want i am keen to move in as soon as possible

gemmacantan1

Hi,

We did the homebuy scheme four years ago with our local housing association and sometimes wish we hadn't bothered! I would defiantly suggest thinking about it hard. We bought a 2 bedroom house for £133,000. Our mortgage was £99,000 and the association gave us 25% for a deposit but two years ago when we came to remortgage it took 6 months to complete. They were so difficult because they don't like you remortgaging unless its for doing maintenance.

We plan to buy the 25% this year. If you go for a shares ownership property make sure its somewhere you plan to live for many years because a friend of mine tried to sell her flat and it took months of grief to get it signed!

Laura2507

gemmacantan1 wrote: »

If you go for a shares ownership property make sure its somewhere you plan to live for many years because a friend of mine tried to sell her flat and it took months of grief to get it signed!

I assume she did manage to sell it though? I'm expecting mine to take months (but won't be putting it on the market until next year due to early repayment fees if I come out of my mortgage early) but I'm worried it won't sell at all!!

Wickedkitten

joel10873 wrote: »

No i am initially moving on in the rent to buy scheme for various reasons

1) i want to get moved as soon as possible to pay less each month as the rental on the house i currently have is high

2) hubby is self employed and i am waiting on this years accounts being finalised to have more accurate figures for mortgage pricing and application

3) if i cant get a mortgage straight away at least i am in a cheaper place to increase my deposit and my bankruptcy will be off my credit report in the not too distant future

i am aware the down side to this is that the house price may well increase by the time i come to buy however i am not tied in to buying the house once i am in it so if the price does go up to much once the bankruptcy is gone i have mroe options

also these schemes and houses dont hang around forever and there is only one plot i am interested in so to ensure i get the plot i want i am keen to move in as soon as possible

I don't know about the one you are on, but I know for the government sponsored one you have to have bought some of it within 3 years, mind I don't know what would happen if you haven't.

Whilst you are renting it, who is actually responsible for the upkeep?

joel10873

yes it is a three year time scale and at that time they decide whether to let you keep on renting or whether they decide its better to sell the house however i plan to have bought it by then

that or win the lottery ha ha! :rotfl:

seriously though it is my best chance of getting on the property ladder and though it may not be ideal for everyone it suits me and i am sure a lot of other people out there.

joel10873

sorry missed the other bit of your question its a standard AST so the housing association are responsible as far as i know and i am resonsible for utilities council tax etc

myboyelvis

Plus never forgetting that whilst you own a percentage the ENTIRE maintenance and upkeep is yours alone. When I looked at SO a few years ago I found that I was eligable for a mortgage, but TVHA criteria was so strict that they refused me due to a small default, yet the mortgage company were willing to give me a mortgage for the percentage. Having said that, Thank you TVHA, as I waited another year or 2 and was able to get a 'normal' mortgage.

myboyelvis

Laura2507 wrote: »

I assume she did manage to sell it though? I'm expecting mine to take months (but won't be putting it on the market until next year due to early repayment fees if I come out of my mortgage early) but I'm worried it won't sell at all!!

Well, why not put in on market from now and by the time contracts are signed you would be at the end of your term.

Laura2507

myboyelvis wrote: »

Well, why not put in on market from now and by the time contracts are signed you would be at the end of your term.

I have considered that but at the moment I think I might be in negative equity, and also sods law would have it someone would come along before next year and I'd then have to find nearly £3000 in early repayment fees. It is tempting to do though as I'm desperate to sell (I'm going to relocate to the north and feeling a bit trapped by the recession and mortgage!)

Layla_CK

Hi!

My husband and I want to buy a 25% share of a property on a SO scheme with a local HA. The cost of the share is approx £35,000 - conventional funding would be through a mortgage - however due to previous credit problems (over 3 years ago) my FiL has kindly offered to extend his current mortgage (he has lots of equity) to loan us the £35,000 (we would pay back the monthly payments to him)to buy from the HA and rent the remaining 75%.

Do you know if the HA would be happy with this, which is effectively buying the 25% share in cash, or in order to buy would we *have* to go the mortgage in our own names route?

Thank you