Shared Equity/

Sam-Barr

Hiya :j

Can anyone give me a quick rundown of pro's an con's of shared equity?
Can you do this with local council? (you own 50% council own 50%).
I like the idea of this as it gives me my own home (my forever home, so no worries on selling) with secuurity but not as much cost.

Emmzi

when you say not as much cost, you know you pay rent on the 50% you don't own, AND you are liable for ALL repair costs?

So it depends a lot on where you live and what you pay now, if you will be better off.

Sam-Barr

Thx Emmzi, could you possibly expand on the rent part?
I wildly assumed that Once I had paid my percent off via my mortgage that there would be no more costs after this? (minus the usual repairs etc)
Whats the rent for?

WelshNic

You rent the 50% the other owner owns.

Running_Horse

The search function will get you started.

Once you have a specific scheme in mind, most people here will say don't bother.

I tend to agree, unless you are a family in an expensive area looking for a forever home.

brit1234

Cut and paste "shared equity" in the search bar above and select forum. There are loads of threads on it.

Personally I think it is a scam to overpay for a tiny shoe box and then get my finances raped.

WelshNic

Running_Horse wrote: »

Once you have a specific scheme in mind, most people here will say don't bother.

I tend to agree, unless you are a family in an expensive area looking for a forever home.

I agree, whilst not for many people I can see it's usefulness for someone that fully understands the product.

lvm

Emmzi wrote: »

when you say not as much cost, you know you pay rent on the 50% you don't own, AND you are liable for ALL repair costs?

So it depends a lot on where you live and what you pay now, if you will be better off.

This is INCORRECT.

Shared Equity is where you pay for 50% and sign some sort of loan agreement (usually with the builder) agreeing to pay him 50% of the sale value, whether this is less or more that the original price.

When you do sell a Shared Equity property, this is just like selling any other property where anyone can purchase the full 100%.

What most people are more familiar with and what Emmzi refers to is Shared Ownership where you own 25/50/75% of the property and pay rent on the remaining %. This, in my opinion, has many more cons. As far as I'm aware when it comes to selling, you need to find a buyer who fits the criteria to purchase a Shared Ownership home.

Hope that helps.

P.s definitely correct - I live in a Shared Equity property.

Sam-Barr

OK so I don't want shared ownership, I want shared equity.
any ideas where would I go to get such a thing?

Emmzi

lvm wrote: »

This is INCORRECT.

Shared Equity is where you pay for 50% and sign some sort of loan agreement (usually with the builder) agreeing to pay him 50% of the sale value, whether this is less or more that the original price.

When you do sell a Shared Equity property, this is just like selling any other property where anyone can purchase the full 100%.

My apologies you are of course right - was focussing on the OP's "the council own half" - much more familiar with SO for LHA type organisations.

Emmzi

linky here

http://www.shared-equity.net/

other linkies are available. just google.