Shared Ownership buying

Anastacia5887

Hi! I'm one of those unlucky people who havent saved £10,000 for a deposit on a mortgage.

I'm thinking of doing this shared ownership scheme were you buy a certain share of the house and pay a mortgage on it and then pay rent on the rest.

What do people think of these schemes? Are they a rip off? Has anyone been successful in buying this way?

Any info would help!!

Graham_Devon

You'll be told its a scam.

You'll be told it's a good solution.

You'll be told to do your own research. This is the best advice.

If your research concludes that you are not only aware of the pitfalls, but also happy to proceed with said pitfalls, as the advantages outweight the disadvantages, its up to you to decide whether the scheme will work for you.

It's worked for lots of people.

It's caught lots of people out. Generally it only catches those out who go rushing into it blindly as they can get a brand new shiny flat. Hence research is so important.

It's not a scam. Neither is it a solution to current house price problems.

G_M

Try putting 'shared ownership' into the search function!

Anastacia5887

Wow sounds like its probably a bad idea from those posts!! I though these things were supoosed to help. I Think ill have to continue to rent for the next 6 years or so until I can save £10,000!

Viks24

I seem to be one of the only ones that actually like shared ownership!

We currently own a 40% share in our new build property and pay rent on the other 60%. We have lived here for 3 years and never have had a problem.
When it comes to the rental side of it, the rent is actually discounted on the share of the property you do now own, and actually for myself and my partner its cheaper for us to live in a shared ownership flat rather than renting one of the privatley rented across the road.

I also think it is nonsense when people say it is near on impossible when you want to sell the property. Ours went on the market in february and we received a letter last week telling us to instruct solicitors as we have a buyer.....and guess what we have also made a profit!

So what i am trying to say is please dont beleive all the horror stories out there, it does work for some people. The way we look at it is we cant afford to buy on the open market, but we dont want to be renting and paying someone elses mortgage. In the last 3 years we have payed some money off our mortgage and we're actually making about £8000 from the sale, so all in all i know what makes sense to me.

Sumsio

Viks24 wrote: »

I seem to be one of the only ones that actually like shared ownership!

We currently own a 40% share in our new build property and pay rent on the other 60%. We have lived here for 3 years and never have had a problem.
When it comes to the rental side of it, the rent is actually discounted on the share of the property you do now own, and actually for myself and my partner its cheaper for us to live in a shared ownership flat rather than renting one of the privatley rented across the road.

I also think it is nonsense when people say it is near on impossible when you want to sell the property. Ours went on the market in february and we received a letter last week telling us to instruct solicitors as we have a buyer.....and guess what we have also made a profit!

So what i am trying to say is please dont beleive all the horror stories out there, it does work for some people. The way we look at it is we cant afford to buy on the open market, but we dont want to be renting and paying someone elses mortgage. In the last 3 years we have payed some money off our mortgage and we're actually making about £8000 from the sale, so all in all i know what makes sense to me.

Out of interest did that £8,000 profit include Estate Agent's commission, the fact if you're a first time buyer you don't have to pay stamp duty (so assume you're paying this on your new purchase), the bank fee when you took out the mortgage for your shared ownership loan, interest lost on your deposit whilst tied up in your property, solicitors costs, survey costs, maintenance costs.

All the above that comes with ownership over renting - are you sure you made £8,000 profit, especially when you obviously purchased at peak and a new build (which obviously de-values when no longer new). I personally think there is some untruth in your statement.

poppysarah

You should work out two things:

how you can save more
and
how house prices have got so high. You could look up how many houses your own MP has and see if the clue is there somewhere.

(ps: 10 years of property !!!!!! on TV didn't help either)

Graham_Devon

Sumsio wrote: »

Out of interest did that £8,000 profit include Estate Agent's commission, the fact if you're a first time buyer you don't have to pay stamp duty (so assume you're paying this on your new purchase), the bank fee when you took out the mortgage for your shared ownership loan, interest lost on your deposit whilst tied up in your property, solicitors costs, survey costs, maintenance costs.

All the above that comes with ownership over renting - are you sure you made £8,000 profit, especially when you obviously purchased at peak and a new build (which obviously de-values when no longer new). I personally think there is some untruth in your statement.

Even if you wipe the £8,000 profit out, they still had security over rental and paid less than rental would have cost.

Orpheo

Graham_Devon wrote: »

Even if you wipe the £8,000 profit out, they still had security over rental and paid less than rental would have cost.

They also had all the responsibilities of a mortgagor with respect to insurance, repairs and maintenance.

neednewhouse

Time to admit that I am in the process of buying a shared ownership flat.

Current situation-old terraced house in dodgy area, needs rewiring ,pointing, some new double glazing, about 2 miles from my 81 year old mother (I don't drive). My mother lives in an area where house prices are much higher than I can afford but I do need to be closer to hand as she gets older. Hoping to get £65k for the house and have already been offered £60k , the area is popular for landlords

New flat-50% shared ownership, I am paying £62k. Rent is £20/week. It's in the (much nicer) area that my mother lives in. Flats nearby of a similar size and age are being marketed for £125-150K. I am responsible for anything inside the flat (as I am in this house), anything else the housing association pays 50% and the 12 flat owners split the other 50%.

I'm sure lots of people will be along to tell me I'm doing the wrong thing but it ticks all the boxes for me

NNH

carefullycautious

where abouts are you that you can pay 62k and only pay 20 pound a week rent on the other 50% amazing :eek: