Share Ownership

sophlowe45

Would anyone be able to give some information on share ownership as from looking at websites i've seen some flats with 25% or 50% share ownership and it said that the scheme was open to key workers and/or first time buyers...

What are the advantages & disadvantages of such schemes and anything else about share ownership that i should know?

thank you.

lynzpower

It really depends. Ive got a SO and Im mixed about it in all fairness.

the good points
you get to live in your own place and your not subject to the vagaries of renting - you can do what you want within reason, ie decorate etc.

the downers
half or more of the money that you pay monthly doenst go anywhere, directly back to the HA. Ie i have 350 rent 350 mortgage. If Id have been able to get a bigger mortgage but a cheaper property IYSWIM.
they own half/ more than half of it, but you pay all the repairs etc

ukmonkey

I had a look at a scheme for a house we were interested in. We dismissed it straight away as in this case, you had a 75% share but had to pay rent.

The house value was circa £135k, the 75% share would mean a mortgage of a little under £100k, and the rent was about £160 per month, with a management fee ALSO payable, of £66 per month.

Rediculous if you ask me!

sophlowe45

that was my thinking as well - to pay both a mortgage and rent...

Jorgan_2

OP, look into all the costs involved of shared ownership. There is a scheme in my area that is selling 50% of shared ownwership for £75k, there is rent to pay on top of this as well as maintenance charges for communal areas. It is possible to buy a simialr property for between £95-110k, so the cost of shared ownership, with this scheme, doesn't really add up.

Check all the figure involved & see what is available on the open market & the costs involved in those.

Poppycat

We are in the process of going for a shared ownership we have been provisonally accepted we are just waiting for the funding hopefully in October we just missed out on the previous deadline in March, due to deralys caused by lender and valuation of our property as soem estate agents wont give you a written valuation so that we can prove to housing association the value of our property.

The deal we have is that we cant afford to get a 3 bedroom house even though we need one due to overcrowding and health/disability needs

We have a small 2 bedroom terraced house of 16 years and selling it at market rate to get a bigger 3 bedroom house and the housing association will fund subject to conditions of house is fit to live in and whether we can get 75% value and or raise the differenceto 75% of the new property from our old house and morgage. They pay the 25% and when we come to sell they get 25% value of the house. We find a choice of where to live like anyone else as its not subject other housing restrictions like say on a estate, we pay no rent on the 25%, its called homebuy.