Buying a Shared Ownership Property

debtdestroyer*

Afternoon all, I looking for some advice really regarding shared ownership properties.
Basically we are looking to buy a shared ownership property for £85,000 (50%) in Oxfordshire. The mortgage will be solely in my partners name, as you can see from my sig I'm in no position to obtain a mortgage, however we have a little girl and we need to find somewhere to live.
Anyway the information I'm after is what the costs are involved in buying one of these types of properties, I'm aware that the stamp duty could either be one of 2 situations, meaning we pay 1% on all the property or on just the percentage were buying, but that's about as far as I've got. I'm know there are lots of other costs but what I would like to know is what they are and roughly how much are they?
Thanks for your time.
Debtdestroyer*

Hippychick

Aside from the mortgage payments you would also pay rent to the Housing Association on the remaining 50% share, I am sure they will confirm to you how much that is each month.

I am assuming you are buying a new build if so with Stamp duty you are correct you can pay on either the full market value or you can opt to pay it on the share you are currently purchasing, depending on what you intend to do in the future if you decide to staircase and purchase the remaining shares it would work out cheaper in the long run to pay the full current market value SD now. If you don't intend to staircase then you may as well pay SD on the share.

You would also have to pay Land registry fees, search fees, mortgage valuation fees, solicitors fees and you would have to pay notice fees to the housing association to notify them of the mortgage.

I can't think of any others, sorry if this appears daunting!

mummytofour

Check the figures and make sure you really are getting a good deal.
Also please only go that route if you really really have to, i lived in S/O for 7 yrs and am v pleased to of moved on, I dont know if S/O was the best thing for me but I guess hind sight is a fab thing.

H/A will want you to prove u have aprox 3 k to pay for all costs involved.

debtdestroyer*

Hi thanks for the speed replies,

Hi mummytofour, I was aware that we would need bout 3k to fund it. I think shared ownership is the only way for us onto the ladder as we can't get a full mortgage, we have to go solely on my partners income as i'm in an I.V.A and am not allowed to obtain any credit. We are hoping to sell and move onto a 100% ownership after bout 4 years as I'll be working full time and my debt problems would be cleared. Thanks for the honest advice tho.


Hi Hippychick, I know how much rent we have to pay already, they have already given us that info, are the land registry fees and search fees billed by the solictors? Will the mortgage valuation fee be put on the mortgage or will I have to pay it seperately? What are notice fees and do you know how much they are?

We are currently living with his mum and to be honest we really need a place of our own and for a little girl.
Thanks again for the helpful advice.