Another Shared Ownership thread

LCM

I've just spend the afternoon reading up on shared ownership threads in the forum – with majority mix feelings about SO. (Hmm? After reading, now i'm not sure) Lots of the SO threads don’t apply to my circumstances.

I’ve been living in the London Fields (Hackney) area for 2.5 years (before that, 9 months in Lower Clapton, Hackney). I’ve been living in the UK for 3 years. I can’t afford to buy in the area as the average price is £300k – unless dodgy council flats if I’m lucky even (that still cost about £145-190 for a 1-bed. i.e. with mortgage, and deposit in a single income). I love the area and hoping to buy a place around here. I can’t deal with living with flatmates anymore. I’m in a new relationship but I’m not ready to move in nor purchase with current boyfriend at this time.

I’m looking into new build shared ownership around the area using the First-time HomeBuy scheme. I’m 33, earn about 38K, I have savings of 30K, hoping to put 20K max as deposit as I would want to leave the rest for stamp duty, legal and other fees and furniture (I’m in a furnished flatshare now). I had a meeting with HSBC today saying, on paper, I would be considered for a mortgage for about 140K (given that I don’t have a bad credit history, which I don’t think I have). Of course they wouldn’t actually know without actually applying for one and wouldn’t recommend to apply for one as a test at this point.

My question is, is SO a good idea with my circumstances?

I’m not planning to have tenants. I’m planning to live in it for about 5 years or so and get a new place with a partner/husband if it all works out. From an investment point of view, I shouldn’t get a 1-bed right? Or does this matter for SO when it’s time to sell?

My third question is what share % is wise to consider? The more the merrier? Should I mainly consider the ones that I can staircase to 100%?

Sorry this is very lengthy with lots of questions but would appreciate some advice. Thanks.

rsbecki

hello hope i can help you out a little bit on shared ownership homes

i live in a shared ownership home and own 50% ov it..but tbh i would not recommend buying one but at the same time is helps you to get onto the property market!! as wiv everything there is pro`s and cons and in my honest opinion there are more cons to pro`s
for example you dont own the property out right anything u want to do it you are suppose to get permission first, wiv my housing association part we are supposed to get permission if we want to put laminate flooring down....if anything breaks down in the house it is your responsibilitie to get it repaired even tho you have to pay them rent

we need new windows in ours and even tho we only own half the house we have to replace them all they do not pay 2wards anything at all so in my opinion you pay them rent for nothing..everything i do in my house benefits there share of the house which i think is wrong

hope others on here can help you out a bit more on this but if u need anymore info let me know and i would be more than happy to try and answer any questions that u have

LCM

How come you need new windows? Is yours a new build? If it's because windows are faulty or installed incorrectly, that *may* still count as builder's fault. I read that they should have at most 10 years builders warranty.

Also does anyone know the difference on the flats between HomeBuy Direct and First-Time Buyer Initiative HomeBuy?

rsbecki

hiya my house was built in 1994 as a shared ownership but these windows that they fitted at the time are the wooden frames ones so do not really last long they have started to steam up so we contacted the housing association part and they have said its our responsibility to get them done

when we brought our house 8 years ago there was not many shared ownership properties available but they seem to be doing them quite alot now so ours wasnt a new build but we was the second person to live in it

PasturesNew

I owned one, my main advices would be:
- try to buy second hand - so you can see how the area turns out.
- they're best bought if you see yourself never ever moving and you're doing it to buy yourself the tenure

I did sell mine, because what I wanted changed, but the area I was in at the time was fine and I had intended on living there for life. I didn't expect to ever buy the other half as I didn't think I'd ever be able to afford it. When I sold, it was in NE, so I just wrote a cheque out for that and didn't buy again for another 3 years as it was another 3 years before I could buy a whole house (in a much cheaper area, with a job paying 3x as much)

If you like the area and expect to never move, then if your circumstances change and you can buy it all/move to somewhere bigger/better then that's fine... but if you buy it expecting to upgrade/get out at a profit in a few years' time then you might just feel pain.

LCM

I'm happy with the area that i'm in. I think there's a couple SO new builds around in the area, so if I'm happy with the flat, i'll be glad to stay there until circumstances change (i.e. starting a family and need more space). Not really to make a profit from it, but would hope to sell it and get costs covered (not at lost) to purchase a better place in the future.

I'm also wondering if it's wise to sell it before all the additional fees kicks in after Year 5, does that cost more in the long run? Or should I just use these first 5 years to save up and hope to staircase?

Does one worth it to staircase?