Home share?

Jami74

We would really like a home of our own and today it was suggested to me that it is possible to buy 50% of a property and rent the other 50%. Does anyone know much about this or had any experience of it?

We would be first time buyers and don't have any debt. We don't have savings either but have access to a £5k overdraft. We currently pay £735 per month in rent and earn approx £22,000 between us.

Suitable properties in our area start at about £150,000.

I've looked at the Co-operative Own Home site here. I've also looked at the HomeBuy Options government UK but there doesn't seem to be anything in our area.

I would really appreciate any advice, thanks.

ziknik

You can select ‘shared ownership’ in the standard search options on Rightmove. Have a look at what is available in your area.

Compare the price against a similar non-shared-ownership house. In my area, I have noticed that the 50% shared ownership properties cost around 140% of the non-shared price.

Punch some numbers into this and ask yourself if it is worth it. http://www.bbc.co.uk/homes/property/mortgagecalculator.shtml

SelbyJay_2

I bought shared ownership and it was the best thing to get me on the ladder. I share own with a local housing association, so check out any associations in your area. As it's a housing assoc, they're bound by the Housing Ombudsmen and have to be seen to acting reasonable to their "tennants". This means their spending (of your rent money!) has to be properly audited and accounted for.

Some people say these schemes are a rip off, but i bought 50% share of a large 2 bed flat for £41k 3 years ago. I lukcily managed to get a 97% mortgage so only had to put down a £1.5k deposit! Even tho my monthly mortgage payments have plummeted, the combined rent & mortgage is still about £100 a month LESS than if i had a mortgage for the flats full value. Even in the property slump, i've still got about £10k equity, which will come in handy when i want to move.

SO doesnt work for everyone and some schemes will be dodgy. Make sure you do your homework and have a solicitor who's dealt with these types of property before and you should be fine. Any questions, just ask!