First time looking at shared ownership

opinions4u

htafc_2008 wrote: »

I am looking for some advice and some help. Myself and my girlfriend are first time buyers, and we have found a house we both like, it is valued at £71,000 for a 50% share the other half being owned by a company called places for people.

I have been to my bank the Natwest and they wont deal with morgages on shared ownership houses that are not on there 'green' lists. I was hoping somebody would be able to advise me on the best practices for getting a morgage for a shared ownership house, whose good for them?, what to look out for? etc?

I would really appreciate any help anyone can offer, regards

To put a footballing analogy on it ...

It's like Huddersfield expecting to get through the play-offs playing like they did on Tuesday night.

It could all work out well, but it's fraught with difficulty.

(EDIT: After a 3-0 defeat at Brentford, perhaps the writing is on the wall).

zzzLazyDaisy

Just to put another view on this...

My cousin was renting in the South East she has two teenagers of opposite sexes so needed a three bed house. The rent was almost £1000 a month and that was pretty average for that area. Although she worked she was a low earner, so was on housing benefit for a sizeable portion of the rent.

Fast forward, a year, the divorce has gone through, she has a decent sized deposit, but can't get a mortgage because of her low income. Her landlord has given her notice as she wants to live in the house and her previous guarantor is now out of work, so other landlords are not interested. She can't find anywhere to rent unless she agrees to pay a year's rent in advance - which would mean she would lose around £12k of her house deposit, and the same every year until it was gone - and then what?

She bought a house on shared ownership, she has 25% and the rest is rented. Owing to the good deposit, her over-all monthly payments (mortgage, rent, and service charge) are about two thirds of what she was previously paying in rent, she is no longer on housing benefit, and cannot be evicted on two months notice.

She has never been happier. She may never own the house and frankly she doesn't care. What matters to her is that she has a secure roof over her, and her children's heads, which she can afford on her wages.

So, for some people, these schemes can work, although I accept they are not suitable for everyone.

dmg24

robin_banks wrote: »

Shared ownership is a strange hybrid of owning and renting. Tbh I'd give it a wide berth.

They are notoriously difficult to sell and you don't have an automatic choice as to who you sell to, the Housing Association decide that.

Only 3% stairgate.

I sold my SO property the same day it went on the market. Some are very difficult to sell, but equally so are some fully owned properties.

OP, is the property a new build, or a resale? Does the lease have an index linking clause for the rent?

There are some very good value resale SO properties, however I have not seen any new builds that are so attractive.

leveller2911

Wutang wrote: »

ADVICE not ADVISE.

jaysus

I think you will find its spelt Jesus.....:D

(Well you started it)

bodgerx

http://blogs.technet.com/photos/gray_knowlton/images/2998979/original.aspx

storeton

A different angle, but I want to buy my parents mortgage of £180000 with my sister i.e remortgage to myself and sister.The property is valued at £250000 recently,and we are first time buyers.
My basic is £32500 with performance related bonuses of £16000 for 2009/10 .My sister earns £12000 p.a.
We are both permanately employed
Both are banks Natwest and HSBC say no not earning enough for £180000
Could we add a third member of the family my mother who works part time earning £6000 and would that help?
thanks for any input
storeton

zzzLazyDaisy

I don't really understand your question, sorry. Do you mean you wish to buy your parents' house, and they are willing to sell you it for the amount necessary to redeem the mortgage?

Sorry if I sound dense - I just want to make sure I understand what you are asking (and in any case you might get more replies if you start your own thread)

SouthCoast

however I have not seen any new builds that are so attractive.

Where I live it is a low wage economy and nobody can actually afford to buy the new build shared ownership affordable property. Several housing associations are now letting them out.

storeton

sorry lazy daisy it is a bit ambiguous,
We want to buy house at reduced figure of £180000 because my parents have a intrest only mortgage of that amount due to be repaid in next 12 months and they have no saving vehicle in place to pay this.
They have tried recently tried to sell but have only had offers not worth considering seriously( real chancers) and this project would be a perfect solution,but try convincing the banks at this moment in the recession!
thanks
storeton

VIGILANT22

http://www.ageconcern.org.uk/AgeConcern/Documents/FS40Deprivation_of_assets_in_the_means_test_for_care_home_provision.pdf