Shared Ownership??

Janec2

Hi Natnat,
In our case we simply went onto Rightmove put in our preference and selected the search for 'shared ownership only' . We found the perfect house for us on our first search and in this case it was being marketed directly by the Housing assosciation. I sent off for the details and they posted me an application form for the scheme. This was processed within a day or so and we were accepted.
We had enough money to pay 10 percent deposit of our 50 percent share. Ours is run purely by the HA so its up to them who they accept as tenants/owners. Some of the schemes are government run and may take longer to be accepted on and different crieria required. (e.g our combined income is probably too high to be accepted on som schemes)
We got our mortgage has the survey etc, and after some haggling got an acceptable price ( some heartache along the way as someone else was interested in the same house so we were in something of a race) Thankfully our offer is now accepted and we are in the process of arranging the conveyancing etc.

Good luck with whatever you do !
Let us know how you get on.

tek-monkey

On a shared ownership property, what kind of rent do you have to pay? Is it much, or just a token payment? I'm going for shared equity, and will be paying about £100pcm for years 6-10 and about £220pcm for years 11 onwards (actual loan amount at todays prices 55k).

I aim to be out by the time the higher rate kicks in, I should either have saved enough to get a good start on the next house or be buying out the equity to reduce the monthly costs. Even so, its only 1.75/3.75% so not too bad.

robin_banks

On a shared ownership property (as opposed to the equity scheme) rent is set by the HA at about 2.75% of the value of the element you dont own. This will vary from HA to HA.

Dont forget the service charge.

Janec2

Theres not always a service charge involved. I think these tend to be for flats. We are buying a house and there is definitely no extra charges aother than the rent.

JohnnyFind_2

Okat wrote: »

Hello,

I am new too, pleased to meet you all

Re shared ownership

I own 50% of shared ownership; my wife and I have grafted for a number of years and made a saving of about £60 K. I have been waiting years for the house prices to fall.

I reccon I will have to spend all 60K on the remaining 50% to buy it outright.

My understanding is that places for people use independent surveyors, I just hope that the surveyor down grades my home price . I have lived in my present home for 10yrs and have not done any improvements, so I hope the survey rates my semi detached home which is in good working class area home in the cheap market bracket.

I am thinking of buying it in December as homes are generally cheaper; should I approach places for people some time in November.

I am now 40yrs old, the most important financial commitment I have always wanted to make is to own a house.

I just hope there are no hidden clauses, for instance even if I buy the home outright places for people will still have legal ownership.

I would be grateful if some one could give me some advice, am I doing the right thing? Are there any tricks i can pull so that the surveyor will knock the house price right....may be use the toliet just before they come, cook bombay duck or some thing lol

It will not effect you, but if the remaining purchase was above the stamp duty threshold then you will be wiser to obtain up to 80% of equity before the final staircasing .

Check out document: SDLTM27080HMRC on the HMRC website for futher details....

Janec2

The developers have finally handed over the keys of our house to the Housinh Association so we actually get to go and see it on Monday !! AND choose our carpets ! Im so excited :j

geoffky

selling 50% of a house can be a nightmare....think about it...who decides the selling price ect ect...

johnnyfind

An independent valuation is carried out if you wish to acquire further equity or sell your stake.

If you do wish to sell, I believe the housing association is allowed first preference but you are allowed to sell on the open market.

I do believe the scheme has some benefits to a degree, the obvious it allows one a foot hold on to the property market. Also gives a degree of protection, as you are still technically living with a housing association.

Only a small percentage actually go on to acquire the full equity and if sold beforehand, the proceeds have to be shared with the housing association.

As a I mentioned before, a falling market does benefit those with part equity who wish to staircase.

Happy times for you then Janec2....:T

gabyjane

Blacksheep 1979..not sure why i would make something up as stupid as bigger rooms etc!! the reason we found this out was when a friend of ours bought an open market one exactly the same up the rd, we were the first to move in and they asked if they could measure the windows, floors etc for the blinds carpets etc..(wish we could have done that!) anyway when they gave the carpet people the quotes and they measured there floor sizes were smaller than ours and quite a bit out too..to say they were a bit narked at paying a lot over what we did for a smaller house was an understatement)..anyway we have not been round so they could be lying for all i know..not sure why but hey!..but then one came on the market last year..i then compared the room sizes on the estate agents site with ours and they are smaller (garden noticibly) and a lot more in money..not sure why tbh i dont really care either!

janec2 your post about it being a home etc reflects exaclty hewat i have been saying for years..this is our home not an investment and we intend to stay here for a long time. Enjoy your new house it is one of the most stressful things i have done..but the most exciting!