Shared ownership/equity is a scam.

gazfocus

Hands up for those that think brit1234 should be banned for spouting so much cr*p all over the place.

brit1234, why are you so against shared ownership?

Let's ask what is the best way to spend my money? Is it:
a) Have a shared Ownership Property, Paying towards my own mortgage and having to pay a little bit of rent.
b) Rent a house/flat and spend MY money paying SOMEONE ELSE's mortgage.

I know which one I'd choose!

For us, our shared ownership house costs us £580 per month (3 bed semi). For an equivalent rental house, we would be paying roughly £600 plus.

If we were to buy a similar house 100% outright, we would be paying £633 per month.

sharingiscaring_2

What happens if you find a buyer (for simultaneous staircasing to 100%) privately during the 'nomination period'? What's the worst the HA can do? Refuse to sell it to them?

gazfocus

sharingiscaring wrote: »

What happens if you find a buyer (for simultaneous staircasing to 100%) privately during the 'nomination period'? What's the worst the HA can do? Refuse to sell it to them?

It depends what your lease says but on our property we have two options:

Option 1 - We can market the house at 100% and go with an estate agent from day one.
Option 2 - We can market the house as a shared ownership but then we need to allow the HA 1 month to find a buyer before we can sell through estate agent.

sharingiscaring_2

gazfocus wrote: »

It depends what your lease says but on our property we have two options:

Option 1 - We can market the house at 100% and go with an estate agent from day one.
Option 2 - We can market the house as a shared ownership but then we need to allow the HA 1 month to find a buyer before we can sell through estate agent.

Thanks. My friend (who is selling) wasn't given option 1 but went ahead and advertised privately despite being in option 2 (the only option). The HA hasn't secured a single buyer so she took her own measures.

Can they reject this private buyer? Anyone have any experience with this?

leveller2911

gazfocus wrote: »

Hands up for those that think brit1234 should be
banned for spouting so much cr*p all over the place.





brit1234, why are you so against shared ownership?





Let's ask what is the best way to spend my money? Is it:


a) Have a shared Ownership Property, Paying towards my own mortgage and
having to pay a little bit of rent.


b) Rent a house/flat and spend MY money paying SOMEONE ELSE's mortgage.





I know which one I'd choose!





For us, our shared ownership house costs us £580 per month (3 bed semi). For
an equivalent rental house, we would be paying roughly £600 plus.





If we were to buy a similar house 100% outright, we would be paying £633 per
month.

If your going to ban every one who "spouts crap" as you say there won't be many left on the site.

We can have a discussion about the pro's ande con's of SO etc and we will be here till doomsday. The real issue to address is why is it that people can't afford to buy 100% of a house. Thats the real issue here. In the last 10-12 years the number of people who have bought SO and managed to go on and staircase to 100% is less than 5%. The problem has not been addressed, in fact Governments HTB schemes are compoung the problem Gaz.
The way we are going move on 10 years and people will be lucky to be able afford 50% let alone 100%.

leveller2911

sharingiscaring wrote: »

Thanks. My friend (who is selling) wasn't
given option 1 but went ahead and advertised privately despite being in option 2
(the only option). The HA hasn't secured a single buyer so she took her own
measures.

I think you will find option 1 is rare and most HA leases have option 2 only.

System

It is a self fulfilling prophecy.

These schemes will lead to an inevitable increase in price due to raised demand. This in turn will make it harder for the next lot of buyers to get on the ladder.

So people buying flats on these schemes have already made it harder for themselves to buy their next property if the flat will not be big enough to accommodate their growing family in the future as they themselves were part of the scheme that led to increasing prices. This is even before they factor in the negative position of not owning the whole of what they do right now.

I guess if people were jumping straight to long term homes (unless they never plan on having a family so would prefer a flat) then they would chip away to the 100% over time.

Doesn't really make sense to me but then again most things in this world don't.

leveller2911

gazfocus wrote: »

For us, our shared ownership house costs us £580 per month (3 bed semi). For
an equivalent rental house, we would be paying roughly £600 plus.



If we were to buy a similar house 100% outright, we would be paying £633 per
month.

Have you also factored in maintenance costs in your £580 Gaz? Equivalent rental house rent of £600 would include the landlords profit and more importantly to you maintenance costs such as re-decoration,plumbing,heating system,electrical work etc etc.

Idiophreak

gazfocus wrote: »

Hands up for those that think brit1234 should be banned for spouting so much cr*p all over the place.

brit1234, why are you so against shared ownership?

brit isn't really against shared ownership at all...he just wants house prices to come down, by any means...and he thinks that "spoting cr*p" about shared ownership all over the internet to anyone who'll listen is him "doing his bit" in the war on prices.

I can't urge people strongly enough to ignore brit's "contributions" to this thread - they're motivated purely by cold self-interest and do nothing to help people who're genuinely in need of help or advice.

sharingiscaring_2

My friend's hubby bought a shared ownership flat before they met. She moved in with him two years after he bought it, and although together they could afford to staircase to 100%, they decided it worked out better to keep the 50% on mortgage (cheap SVR) and pay the rest in rent and service charge. Compared to other flats on normal let in their building, they saved at least £400 per month.

With their combined salaries and the cheap cost of housing for the last few years, they've been able to save up enough to buy a house and start a family. Selling seems to be relatively straightforward too as they will simultaneously staircase and sell as 100% to a regular buyer.

It's obvious shared ownership isn't for everyone, and of course not everyone that bought SO as an individual ends up in a couple with a decent combined salary, but in my friend's example it worked out pretty well.