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Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.Shared ownership/equity is a scam.
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Wow people actually think this helps them. Its is both comical and sad at the same time that some people think that entering the housing ladder by means that they can't genuinely afford can ever help them.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
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So what's the alternative for people in areas where property prices are greatly inflated? Where rents work out to be higher than a mortgage on a SE property? Just don't live there? Move out of London and pay £2000+ per year on commuting?
The fact is that house prices are still out of reach of most people in some areas in London. I earn above the average London salary (in excess of 40K) but I can not afford to buy anywhere decent in the area where I work. I want a good quality of life without the daily strain and stress of a long commute. I want to live in a decent home in a decent area and for now the only way to do this is through a SE scheme.
I didn't enter into this as a means just to get onto the housing ladder or to make a profit. I just wanted somewhere nice to live!!! If things all go pear-shaped in a few years then I'll cut my losses and buy/rent soemwhere else. Why does it anger so many that some people are trying to present another side to the argument?0 -
and_another_thing... wrote: »So what's the alternative for people in areas where property prices are greatly inflated? Where rents work out to be higher than a mortgage on a SE property? Just don't live there? Move out of London and pay £2000+ per year on commuting?
The fact is that house prices are still out of reach of most people in some areas in London. I earn above the average London salary (in excess of 40K) but I can not afford to buy anywhere decent in the area where I work. I want a good quality of life without the daily strain and stress of a long commute. I want to live in a decent home in a decent area and for now the only way to do this is through a SE scheme.
I didn't enter into this as a means just to get onto the housing ladder or to make a profit. I just wanted somewhere nice to live!!! If things all go pear-shaped in a few years then I'll cut my losses and buy/rent soemwhere else. Why does it anger so many that some people are trying to present another side to the argument?
i'm in the same position as this and got put off going down the shared ownership route. I'm now looking to buy a small flat, but it will be far inferior to the shared ownership properties.0 -
and_another_thing... wrote: »So what's the alternative for people in areas where property prices are greatly inflated? Where rents work out to be higher than a mortgage on a SE property? Just don't live there? Move out of London and pay £2000+ per year on commuting?
The fact is that house prices are still out of reach of most people in some areas in London. I earn above the average London salary (in excess of 40K) but I can not afford to buy anywhere decent in the area where I work. I want a good quality of life without the daily strain and stress of a long commute. I want to live in a decent home in a decent area and for now the only way to do this is through a SE scheme.
I didn't enter into this as a means just to get onto the housing ladder or to make a profit. I just wanted somewhere nice to live!!! If things all go pear-shaped in a few years then I'll cut my losses and buy/rent soemwhere else. Why does it anger so many that some people are trying to present another side to the argument?
Unless you plan living in your flat for the rest of you life you are on the property ladder by default.0 -
and_another_thing... wrote: »Why does it anger so many that some people are trying to present another side to the argument?
It's not anger. Anger leads to hate. Hate leads to suffering. This is the path to the dark side. If once you start down the dark path, forever will it dominate your destiny, consume you, it will. The dark side clouds everything, impossible to see, the future is. But shared ownership is not the way.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
I have a shared ownership property, have had a 50% share for almost 5 years. Yes I got a 100% mortgage on my share, brokers were pushing a 125% interest only option but I went for repayment option. Not worried about negative equity etc.. I have a good mortgage deal and am not planning on moving at all.
Shared ownership is not ideal but I can't complain - I love my flat, am also in debt but dealing with that - cant blame the shared ownership for thats just me!When my debts are paid off I will look firstly to overpaying my existing mortgage and then staircasing to 100%.
So far so good!!0 -
Agree a scam. I have one now!. They charged us too much and now we are in negative e.
We can buy more up to 100% but if we do we have to pay fees on each ocassion legal and valuation, and the price seems to be high compared with the market, lets not forget they are also able to choose the valuer.
We had endless problems, but we did make 2K in compo.
The rent review is always a sign that we are due to pay more!. We are now paying in rent the same as a private rented house without the S-ownership.
Maybe good for some, bad news for me0 -
nigelflack - We have thought about renting but unfortunately this is not an option for us. I didn't mention earlier as it makes no difference to the sale price, but we have 51000 with Nationwide mortgage, and then the remaining 29000 was with the Governments My Choice Home Buy scheme which we intend to pay back in full with the sale, then the mortgage on our new property will be just mortgage. Anyways, it advises in the clauses that we are not able to rent the property out, else it would def be something to consider.
http://forums.moneysavingexpert.com/showthread.php?t=3194430
Above is another shared equity horror but this time by a fellow MSE member. Sad story really, They paid about £80k with homebuy where the other flats in block sold for £51k.
http://www.houseprices.co.uk/e.php?q=WS28AE
Ban these scam schemes before anyone else gets caught out.
:exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.
Save our Savers
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Personally, I wouldn't touch a Shared Ownership property with a bargepole after reading this article:
(ahem, it seems that as a new user I can't post links yet - but google for "practical conveyancing shared ownership major problem").
In a nutshell, depending on how the shared ownership deal was structured, if you fall behind in your rent for two months you can lose all the equity you've put into the property :eek:0 -
Good to see this thread back on the front page where it belongs. Time for that sticky.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0
This discussion has been closed.
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