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buying a flat - Shared ownership
hellokitty08
Posts: 1,878 Forumite
Hello,
My nan is hoping to down size to a retirement flat. Its shared ownership, but it would work perfectly for her (we think) because she could sell her house (buyer already lined up) and have some money in the bank to enjoy herself.
There is no rent to pay on the 30% she wouldnt own, just £80 a month service charge. Its on a 99 year lease, but realistically we dont think nan would be alive for another 10 years. (bless her)
She would have enough money from the sale to be able to afford to live comfortably for 30 years.
We have checked out the impact on her pension and stuff and it all seems ok. As she cant manage the stairs where she lives the move would be to make her more comfortable.
She wouldnt be able to afford buying another property like this out right, so seems like a good idea. Are we missing anything?
My nan is hoping to down size to a retirement flat. Its shared ownership, but it would work perfectly for her (we think) because she could sell her house (buyer already lined up) and have some money in the bank to enjoy herself.
There is no rent to pay on the 30% she wouldnt own, just £80 a month service charge. Its on a 99 year lease, but realistically we dont think nan would be alive for another 10 years. (bless her)
She would have enough money from the sale to be able to afford to live comfortably for 30 years.
We have checked out the impact on her pension and stuff and it all seems ok. As she cant manage the stairs where she lives the move would be to make her more comfortable.
She wouldnt be able to afford buying another property like this out right, so seems like a good idea. Are we missing anything?
Debt free since July 2013! Woo hoo! The bank actually laughed when I said I have come in to cancel my overdraft.
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Comments
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Sounds unusual. I'd look a bit deeper into the scheme. Shared ownership without a rental sounds odd.
Look into whether there is something like interest after 5 years (that 30% is a loan, they are going to be looking for something a bit more profitable than property price increases) and fully repayable after 10 years on the value of the property at that time (shared equity scheme standard).
Make sure you aren't paying 20% more for this property just to avoid paying 30% up front.
Perhaps if you provided a link to details of the scheme someone can look a bit deeper.0 -
If it's a Registered Social Landlord like Johnnie Johnson, you can buy 70% on a leasehold retirement property or 75% on shared ownership and pay no rent;-
http://www.jjhousing.co.uk/astraliving/buying-selling-a-leasehold-property/guide-to-buying-a-shared-ownership-property/#rent
She needs to establish what exactly she is getting involved in, before she commits to purchase.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Hello,
Its a retierment property with a housing association, EMH (east midlands housing I believe)
They have informed the estate agent that there is no rent to pay, obvioulsy any offer we make would be subject to this being correct.
Thanks for the pointers.Debt free since July 2013! Woo hoo! The bank actually laughed when I said I have come in to cancel my overdraft.0 -
http://www.emha.org/EMHA/LookingForANewHome/HomeOwnership/Home+ownership+for+the+older+person.htm think we need to request a look at the lease.Debt free since July 2013! Woo hoo! The bank actually laughed when I said I have come in to cancel my overdraft.0
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