Shared Ownership

nelly_2

lynzpower wrote:

Nelly

The way the sums stack up, I AM PAYING more than a 200k mortgage, despite the fact the mortgage is 75k and the rental side is the rest. If I took out a 100% mortgage on 200k it would be less. However I wouldnt get mortgaged for that as my salary is too low. ( plus was a solo buyer at the time, not now)

Sorry nelly didnt make sense, no one will mortgage me for 200k as my salary is too low, so thatsa why i have to rent the other part.

Cant wait to be shot of this *deal* TBH, its really not for me.

your explanation did make sense ...just

and yeah it is a bad deal and helps increase house prices.

lynzpower

Glad someone else agrees with me about houseprices

As an aside I also think that all this "on the ladder" is bloody nonesense, and its starting to be my most hated phrase. I ask people what they mean by it and its thoroughly empty. If you want to buy a house fair-dos but what bl**dy ladder....one you can barely afford to get on, but still desperate to climb!?!!!

mummytofour

Having just sold our SO home after 7 yrs I am very glad to be out of it!
I would only EVER use S/O as a very very last resort, the re-sales often work out better value than the brand new places, but bear in mind the up keep costs.

suki1964

Having just sold our SO, knowing what I know now I would never have gotten into it. We had a DIYSO and house prices rose so much whilst we were there that we could never get a big enough mortgage to buy the other 50%. Selling it if course we only owned the equity of half - once again not enough to get a big enough mortgage to buy a larger property. And of course rents rose and mortgage payments fell so in the end we were paying more in rent then mortgage payments.

I wish we had saved for a bigger deposit at the start and got better financial advice but then hindsight is a wonderful thing

When we did sell, the HA had to find us a buyer. We had to pay for the valuation , pay for the HA's solicitors (as well as our own) and 1% of our share. Good thing was they had 6 thousand people on their lists waiting for a property and about 3 hundred of those were eligiable to apply for ours so it went on the first days viewing. If the HA couldnt find a buyer within a reasonable time span then we could have put it up for sale with an agent and the HA forfeited their 1% but we would still have to paid their legal costs

lynzpower

I wonder if we did a straw poll of everyone on here whos in SO, how many of them regret their initial decisions. I certiainly do, no doubt about that.

Adrian_london

I am finding this very very interesting (listneing to other peoples ecperiences)

I have a SO flat. There are a few things that really P**s me off about it.


1) It is a "new build" so I don't like to sneeze too hard in case the walls fall down

2) It is a 1 bed flat (it is in London) so in the winter I cannot use the washing line (I'm on the ground floor and have my own garden) and am having to hang things up all around the place.

3) As for the service charge, well, they should have just said "Stand and Deliver" (£100 per month)


Luckily for me, I was able to buy the other 50% of the property at a good price fairly soon after moving in and am now in the process of selling it and moving up the property ladder. I've made a nice few quid from it but thats another story altogether.

As for other posts, as far as I am aware, if I DIDN'T own all of the property I would have had to have given the HA first dibs so to speak for 3 months. After that then it would go on the open market. As I do own 100% then it goes on the open market immediately.

I would only recommend SO on 1 proviso...............

YOU BUY THE REMAINING SHARE ASAP. If you don't then you will get into the same rut as an earlier post regarding not making enough money when selling for the next purchase you are making.

Good luck in anyone who is buying their first home. If anyone has any questions for me then just send me a message. I do check them from time to time.




Adrian

lynzpower

Adrian

How did you get mortgaged for the extra shares?

lynz
x

Curley

I'm in the process of buying a 50% share in a SO house. After reading this thread it looks like i'm doing the wrong thing

suki1964

Curley wrote:

I'm in the process of buying a 50% share in a SO house. After reading this thread it looks like i'm doing the wrong thing

Maybe buying SO isnt the way to go for everyone, but it may well be in your case. Personally I would go seek IFA to get a better idea if it really is the way to go.

xlt_hunter

Adrian_london wrote:

I would only recommend SO on 1 proviso...............

YOU BUY THE REMAINING SHARE ASAP. If you don't then you will get into the same rut as an earlier post regarding not making enough money when selling for the next purchase you are making.

I agree on this quote - but you have to be careful with the terms, with my SO you can buy the other half after 1 year with the SO house, but as I had a 2 year felix mortgage with the abbey I couldn't move until the 2 year period has ended. But now it has and by the end of this week I will have freehold status of my house (other than the mortgage) via 100% and away from the cowboys of this HA.

To me, SO is a good idea for people who are priced out of the market - but be warned, if things go wrong ie boiler breakdowns and leaks - your on your own (even though you paid rent/insurance) and it will go up every year if you like it or not (think mine went up by 4.5%)

What annoys me, is that I have to pay £117 for a survey on the house so I can buy it (has to be on paper) and they choose the estate agents that they want (you have no choice) and have to pay for their legal work as well!!! :mad: :mad: :mad: :mad: another £175!!!, also they impose a 12 week time limit from start to finish when you buy the remaining shares. Go over by one day and then its another £117 out of your hard earned cash and have to pay for any ncreses in the house value as well.

Just be careful and get all of the figures first before you sign the paperwork.