Shared ownership/equity is a scam.

Tancred

The real problem is not shared ownership but the idea of ownership in the first place. If private rent was affordable and offered more security to the tenant then we would not need to buy at all. Many people in Germany and Switzerland rent instead of buy, and it doesn't seem to be a problem in these ultra-middle class countries. There is no stigma attached to renting there.

donfanatico

Tancred wrote: »

The real problem is not shared ownership but the idea of ownership in the first place. If private rent was affordable and offered more security to the tenant then we would not need to buy at all. Many people in Germany and Switzerland rent instead of buy, and it doesn't seem to be a problem in these ultra-middle class countries. There is no stigma attached to renting there.

I agree - in this country , property ownership is pushed too hard and even in regular everyday conversations one is looked down on if renting rather than having a mortgage, which has consequences as can be seen in recent years.

Gray-Fox

So what's the conclusion on this, and is there anywhere I can get objective knowledge on the situation?

monty-doggy

Conclusion:

For some people in some circumstances it's a con.

For some people it's a good idea.

Don't listen to any of this unless your circumstances are identical.

Use a budget planner, work out what you can afford. Shop around see what options you have. Make a list of pros and cons and worst case scenarios. Then decide if its worth it to you.

Your own instinct should tell you if it's right or wrong....if in doubt get out!!!

poppy10_2

Another victim to add to the list:

elfordio wrote: »

I bought 25% of a flat from Bromford homes. They have increased my rent from £320/month to £420 month in 4 years, over 30%. They tell me this is because there is a clause in the small print of the lease that allows them to raise rents by inflation + 2%. Clearly this is unsustainable to anyone for a long period time as it increases exponentially.


When I challenged them about this they said the Govt. tells them how much to raise the rents by. This is a lie! They are pricing me out of my home and are now threatening me with court action, ccjs and bankruptcy.


My advice would be to everyone: NEVER ENTER INTO A SHARED OWNERSHIP CONTRACT WITH BROMFORD HOMES!!!!!!!!

Idiophreak

poppy10 wrote: »

Another victim to add to the list:

Victim?

So they were forced into signing up?

chrisgains51

I wondered if anyone has had the same problems with shared-ownership as I have.
I have a 25% share of an affordable home - a semi-detached house - and have realised that although it provides some security for myself it does have pitfalls.
Houses built on this estate after ours were built have rents of approximately £100.00 per month less than ours.
My neighbours and myself have had to query our rent rise this year because the amounts they ask for is not as printed in the lease. The lease states that the rent for the equity will increase by the RPI but we are being asked for the RPI + 0.5%. This has been a rise of approximately 23% since 2006.
We do not get any help from the Housing Association for repairs or maintenance and have to pay for all costs in our homes.
We are being asked for Management Charges of £20.00 per month (which has increased by 40% since 2006) and £3.00 per month for Building Insurance even though we have no communal areas and the Leasehold Advisory Service say that we should only be charged for Building Insurance.
These rises are more than the increase given to me for my state pension and I do worry for the future. I am not in a position to purchase the remain equity.
We have queried these rises in the past but we get no suitable answers.
I/we would be grateful of any help or advice for other shared-owners.

perbinder

Shared ownership is about allowing someone who cannot afford their property buying a flat/house so they can go to work, eg my fianc!e who has just sold her flat in Swiss cottage. She works for the NHS and could not afford the prices near her hospital. Shared ownership allowed her to buy a flat at rates she could afford. When she sold she received 25% of the profits too. Which in London over 4 years were substantial even in a recession!

She sold it to a teacher who now lives near to where she works.

For them it is a great way to get on the property market.

Idiophreak

chrisgains51 wrote: »

My neighbours and myself have had to query our rent rise this year because the amounts they ask for is not as printed in the lease. The lease states that the rent for the equity will increase by the RPI but we are being asked for the RPI + 0.5%. This has been a rise of approximately 23% since 2006.

What has the response to the query been?

chrisgains51 wrote: »

We do not get any help from the Housing Association for repairs or maintenance and have to pay for all costs in our homes.

Were you not aware of this when you bought the house?

chrisgains51 wrote: »

We are being asked for Management Charges of £20.00 per month (which has increased by 40% since 2006) and £3.00 per month for Building Insurance even though we have no communal areas and the Leasehold Advisory Service say that we should only be charged for Building Insurance.

Not sure about that. You will have some communal areas, even if they're just footpaths, plus there may be maintenance on the external of the property that needs paying for...So not sure where this would come from if no service charge were applied.

It's regrettable, but part rent part buy really is the worst of both worlds - you take on all of the responsibility of ownership, but can be shafted by price hikes like a renter.

Lgas

I know people on this thread have been saying that these homes are over-priced but i've recently looked at what sort of houses I could get for the same money within a 5 mile radius, and nothing even comes close. Sometimes you get a bigger garden, but the other rooms are smaller, or the house needs a LOT of updating. 3 years on from buying from new and i'm still really happy with my Bellway home, I love it. We're on a 50% mortgage 50% rent split, and we intend to move to 100% mortgaged in a year's time, if not sooner, now we have a higher joint income. The only annoyance is the broadband speed, but i'm hoping that eventually they will put fibre optic cables down to our cabinet.