Shared Ownership Mortgage help?

Conrad

The take home message regards S/O is that the applicant needs a very good credit history.

As for being a scam - that's too sweeping, but the outcomes are mixed. I have to say on average the new build property is overly pricey though.

SelbyJay_2

Over pricing is a developer issue, not a housing association issue.

The whole street where i live is HA. It's their development and so they controlled the development costs and sale costs for each property. This has worked out pretty well. If doing SO, you do have to investigate FULLY what the options/outcomes will be.

Katgrit

poppy10 wrote: »

Shared ownership is a scam. Avoid.

How much rent are you paying at the moment, and for what kind of property? And what kind of property is the shared ownership?

I'm stunned by this sweeping generalization. How can you say that? In area's of high prices such at London and the South it might difficult to carry on moving up the ladder from your initial minischule share but surely its better than owning no property at all? Not sure how SO monthly prices compare with wholey rented prices in other areas but where i bought its brilliant in comparison.

Personally, and i know this wont be the same for everyone, it was one of the best decision i ever made. My 10 yr old 2 bedroomed semi was worth £96,000 when i bought it 6 years ago, i got a 50% share. Its now £120,000 so i'm already quids in with equity. At the time the only properties i could have bought outright around the area i lived in were very limited. I traipsed round every single estate agent in 4 nearby towns and there were genuinely only TWO places i could afford. One was a derelict hairdressers in Tipton with an occupied flat over the top (what the hell i'd want with a hairdressers shop i couldn't actually live in i have NO idea but estate agents never listen)
OR a scutty studio flat on the estate were ALL the flats are for sale, and the ones that aren't are boarded up because the owners are in jail. While i know i'm rambling i do have a point honest!!

At the time i only needed a 5% deposit which felt like it took me AGES to save! My mortgage is £182 pm (admittidly it was higher initially) and my rent is £117. From memory the scutty flat or the hairdressers would have cost me about £400 pm. Or if i was to have bought this place outright (ignoring the fact that the bank wouldn't have lent me that much!) i'd be paying about £650.

So dense as this may sound to some of you
I'd rather pay £300 for HALF a house here than more for ALL of a scutty dump somewhere else. As it is i'm single, love my neighbours and the area and so have no desire to move. At the moment i dont have to worry about providing an inheritance or gaining equity and so monthly i am financially better off NOT buying further shares. If i get am blessed enough to get the married with kids parcel my house has plenty room and i'll also have another income to contend with. Once bought out the house will be prime for an extension. I know i probably dropped lucky but i think shared ownership worked was perfectly for me.

Often round here (midlands) and up North in my home town these properties are snapped up before the estate agents even get a chance to come round and measure up the rooms. So I know i'd never have a problem if i wanted to sell.

Just think its not good to completely write off SO just cos it doesn't/won't work for some. Its not as evil as it might seem!