Shared ownership

YorkshireBorn_2

Been looking into shared ownership (me been the sole applicant) but not sure if the process is the same as a conventional mortage, been looking at 25% or 50% (all i can afford for a few years) until my pay grade is incressed. Anyone own a shared ownership house/flat?

:beer:

VIGILANT22

No I don't own shared ownership, but procedure for all mortgages are the same, minimum deposit for s/ownership will be 25%, not all lenders offer this type of mortgage, so ask friends etc to refer you to a whole of market adviser

haras_nosirrah

Min deposit for a shared ownership will be 10% deposit on your share i.e. if buying a 50% share of a 150k house would be 75k - would need min of £7,500 deposit plus money for fees and furniture etc. If you can get a 15% or higher deposit then the rates come down significantly. Is very similar to buying on the open market where you need the deposit on your share as if you lose the property the bank cannot touch the housing associations share of the property.

Are you looking at a new build or a second hand property? It makes a big difference to the lenders and rates available (if new build the market is more restricted although you can still proceed with a 10% deposit but rate is very very high) Lenders for shared ownership houses and flats are also different

dimbo61

Think about this very carefully
Have a friend who bought a flat a few years ago and only allowed to buy 90% of flat now trying to sell and unable to get rid.
Can you save a good deposit and buy a small place outright ?

haras_nosirrah

There are some areas (mainly rural) where they will only ever allow a purchase up to a certain % (usually 80%) if this is the case then never staircase above 50% as you will find it very difficult to sell more than 50% to anyone else unless they can staircase to 100%. If you buy one without a restriction you should be able to staircase to 100% and if the housing association cannot find you a buyer on sale then you can sell on the open market as a full property if wanted (with you as the seller getting your % of the sale price.

to Dimbo - your friend will find it incredibly difficult to sell it if he owns 90% of the property and can't staircase to 100%. Who would want to buy 90% of a property as they could usually buy 100% for not much more. If he owns less than 50% then he should be ok to sell.