Right, going into shared equity from full ownership - am I mad?

BadgerFace_2

puddy wrote: »

but if its not specifically social housing, are you telling me that you can just buy any old house under SE and some housing association (in the area i presume) will share the equity with you?

i would imagine that these properties are built and owned initially by the HA, then sold as SE, which means that everyone will know the roads, or estates or complexes that they are on?

SE schemes aren't just HA, they are also run by private companies and most commonly house builders. Most SE properties have nothing at all to do with any housing association, or anywhere near HA estates.

If you live in a new estate, you can say in the vast majority of cases that a few people on that estate have bought under shared equity. In this case, the house will have been bought brand new by the owner, never owned by a HA, nor anything to do with one. It is a private agreement between the owner and the builder.

You can, under certain schemes, go and find any house you like, then buy it as shared equity, either through a government run scheme or with a private company.

Eels100

Just to clarify, the scheme I am talking about is the New Supply scheme, which is a government initiative to provide affordable homes in areas where there's a shortage. For example, the properties which I am looking at are part of a development where a number of them are to be rented out by a Registered Social Landlord (like a housing association) and the rest are for sale on a shared equity basis. One sold they are owned by the people who bought them, although the RSL holds a stake in their equity. In areas where there's perceived to be a particular demand for it, the RSL keeps a "golden share" so outright ownership is never possible - the house must be sold back to the RSL effectively.

The Open Market scheme whereby you find a house you can't afford and the government tops you up so you can buy it is now only open to ex-service personnel or their families I think.

lvm

I, like girlatplay, am in a Shared Equity property in Edinburgh.

In my own opinion there's no sort of stigma around being in some sort of estate that everyone know you live in a housing association property.

In the development I'm in, some are Shared Equity, some I think are Shared Ownership and there are some average normally sold flats. All by the same builder.

Personally I think it's a great idea - I bought mine 4 1/2 years ago on an IO mortgage and in 5 months time will be overpaying the repayment amount and will finish my mortgage my mortgage in 18 years rather than 25.

Just my little opinion on the whole thing!

freyuk

Be carefull the pricing is right when a development is mixed between private owners and housing association renters. The value will fall as well if there is a hight proportion of renters compared to owners. Seen a few cases where properties have lost a lot of value this way. It is down to the different priorities of the owners compared with the housing association.

brit1234

I'm going to be blunt now. I personally think anyone buying shared equity or shared ownership at this moment is crazy and will later regret it.

We are at a tipping point in the market and I believe in a years time with the price falls you will be able to buy a whole property for the same amount.

Look at the likelihood of increased interest rates, inflation and unemployment. Look at mortgage lending unlikely to be improving for years.

Take a balance view, a breather and come to an informed decision. Do not rush into anything.

Good luck

girlatplay

My property is in a non-council, non-HA area. The HA who share the equity with me do not own any properties in the area I live in. I became a single parent due to very sad circumstances which were no fault of my own. 3 years ago I moved from a council property where windows in my home and in the stair were broken regularly, known (to the police) junkies lived in the stair, the neighbours were anti-social and food was thrown at my windows (not a personal vendetta against me, just because the property was an easy target). We lived in fear for 4 years (in a council property where the police and council did nothing to help - no proof and when I did pluck up the courage to call the police on a number of occasions they didn't even bother to show up).

At the depths of despair I had my LBM. I sorted out my finances and went from working part-time to working full-time. I worked my a**e off and I still didn't earn enough to get a mortgage on my own. I had no savings and no one to ask for help. The property prices were at their highest at the time and I had no way of improving life for my child and keeping my sanity. A friend who worked for a HA suggested the HomeStake pilot scheme. I went to a mortgage advisor and he was able to agree a mortgage for me under a SE scheme. I was allowed to choose a property on the open market - I didn't purposely choose one I couldn't afford, I couldn't afford any of them. We moved in in February 2007 and I have never looked back. I have one unsecured loan left to pay off (26 monthly payments left to go - original loan 6 years) then I will be throwing all my money into purchasing the HA share. I am so happy in my home now. I am not scared anymore, I love my home, my daughter is happy and near the school. I have never been this happy in my life. I have no intention of moving house anytime in the forseeable future, I intend to stay where I am at least until I own the whole property. Once I have, if I decide to sell the property, no one will ever need to know that I originally purchased it under a SE scheme. As I said, my property is in a non-council, non-HA area.

I know that I am lucky but the luck wasn't just handed to me on a plate, I had to work very hard for it. I just want everyone to know that owning a SE property is not the worst thing in the world.

Wickedkitten

lvm wrote: »

I, like girlatplay, am in a Shared Equity property in Edinburgh.

In my own opinion there's no sort of stigma around being in some sort of estate that everyone know you live in a housing association property.

In the development I'm in, some are Shared Equity, some I think are Shared Ownership and there are some average normally sold flats. All by the same builder.

Personally I think it's a great idea - I bought mine 4 1/2 years ago on an IO mortgage and in 5 months time will be overpaying the repayment amount and will finish my mortgage my mortgage in 18 years rather than 25



Just my little opinion on the whole thing!

If you bought on IO, then surely you don't have a repayment amount because your entire payment is just interest.

Turnbull2000

The government is highly keen on promoting shared-ownership. For those without wealthy parents, this may be the only realistic route to avoiding renting. Expect it to become way more typical in the coming years.

BadgerFace_2

Turnbull2000 wrote: »

The government is highly keen on promoting shared-ownership.

Of course they are, it would stabilise the economy! It's a shame they haven't managed to get more than a handful of banks to lend against them though.

Burridge60

Mad as march hares. Luppey as Larry.

Is that cat really gonna catch rats.

same government make your own mind up

Mad as hatters.