Shared Ownership buying

Orpheo

Repairs (to fix that what is damaged) and maintenance (to keep in the current state).

Viks24

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.

Firstly there is no estate agents commission the housing association failed to nominate a buyer within there period and we didnt get around to putting it with an estate agent - we had queried it with one, and they came out and discussed it with us - next thing we knew thy were ringing us saying they found a buyer for our flat and they will pass him our way because they are sorting out his mortgage so they still get a fee from somewhere.
Our next purchase is still under SD threshold so no wont be paying that.
The bank fee for our mortgage was added to the mortgage so yes that has all been taken into consideration.
If you put your money in any property you are always going to lose interest doesnt matter if its SO or not
Solicitors and survey costs have already been taken out of that hence why i said "profit"
Maintance costs? to be honest it was a new build flat, we havent had to make a single repair. all we have done is decorate to our tastes

Im not sure why you think there is some untruth in what i said, someone asked for an opinion on SO and i have put down what my honest experiences are of the scheme, i dont see a reason to lie about it.

I think SO has been brilliant for us, and i have since recommended it too many friends several of which have gone down the same path

IMO i see it as a halfway between paying someone elses mortgage in terms of renting, and being able to afford our own place outright, and considering im 24 and partner is 21 i dont think we've done too badly for ourselves

Sumsio

Viks24 wrote: »

Firstly there is no estate agents commission the housing association failed to nominate a buyer within there period and we didnt get around to putting it with an estate agent - we had queried it with one, and they came out and discussed it with us - next thing we knew thy were ringing us saying they found a buyer for our flat and they will pass him our way because they are sorting out his mortgage so they still get a fee from somewhere.
Our next purchase is still under SD threshold so no wont be paying that.
The bank fee for our mortgage was added to the mortgage so yes that has all been taken into consideration.
If you put your money in any property you are always going to lose interest doesnt matter if its SO or not
Solicitors and survey costs have already been taken out of that hence why i said "profit"
Maintance costs? to be honest it was a new build flat, we havent had to make a single repair. all we have done is decorate to our tastes

Im not sure why you think there is some untruth in what i said, someone asked for an opinion on SO and i have put down what my honest experiences are of the scheme, i dont see a reason to lie about it.

I think SO has been brilliant for us, and i have since recommended it too many friends several of which have gone down the same path

IMO i see it as a halfway between paying someone elses mortgage in terms of renting, and being able to afford our own place outright, and considering im 24 and partner is 21 i dont think we've done too badly for ourselves

The reason I saw some untruth in your statement is that your property has obviously deceived current market forces. Property prices were at their peak in 2007 and you have somehow made £8,000 profit on a flat that has obviously depreciated since no longer new and in a falling market where flats are probably one of the worse types of property hit.

Taking into account the fact you made £8,000 on a 40% share of a flat, which is below £125,000 as no stamp duty was due, this would indicate that your newbuild flat had somehow risen against all market forces approximately 20% over 3 years when every other property in the same time has fallen in price! You are telling the truth? I somehow doubt this!

If what you say is true, congratulations to your Housing Association for tricking a new buyer (most probably a key worker) into making the biggest mistake of their life!

Orpheo

£8K profit will no doubt have you leaping up the housing ladder. That is unless it costs 8k more to buy an equivalent property.

nbewsey

I work for a company that offers shared ownership properties and I must say my feelings are mixed on the idea.

On the one hand, it is an excellent way to get your foot on that property ladder, on the other it can work out to be the same monthly outgoing as owning your own flat.

The reason we set up was to help first time buyers get on the property ladder, we don't deny that by the time that your rent (on the % you don't own), and service charges are added to the mortgage (that you have borrowed for the % you do own) then it comes out to roughly what a regular mortgage would cost.

The thing is that while most mortgage lenders are loathe to lend unless you have a 25% deposit, you can take out a much lower mortgage (as you're buying a percentage) and therefore need less deposit.

There are also now schemes where you can rent a property through us and then have the option to buy a percentage of it when you can afford to.

Feel free to ask me any questions, I can't promise I can answer them all but I'll do my best

Cheers

Viks24

Sumsio wrote: »

The reason I saw some untruth in your statement is that your property has obviously deceived current market forces. Property prices were at their peak in 2007 and you have somehow made £8,000 profit on a flat that has obviously depreciated since no longer new and in a falling market where flats are probably one of the worse types of property hit.

Taking into account the fact you made £8,000 on a 40% share of a flat, which is below £125,000 as no stamp duty was due, this would indicate that your newbuild flat had somehow risen against all market forces approximately 20% over 3 years when every other property in the same time has fallen in price! You are telling the truth? I somehow doubt this!

If what you say is true, congratulations to your Housing Association for tricking a new buyer (most probably a key worker) into making the biggest mistake of their life!

Look I'm not looking for an arguement i am merely telling it how it is, as someone asked for their opinion regarding SO.

I feel that in the beginning the block of flats were undervalued, and hence the reason that we're not the only ones in our block that have sold with such a great profit.

I admit i was completely shocked at the valuation we received and was expecting it to be a bit less, but then im not going to argue with a qualified surveyor am i?

It works for some people and thats the point im trying to make, because i hate how some people are so negative and closed minded about something infact they have had no personal experience with.

Anastacia5887

Graham_Devon wrote: »

That's shared equity.

So don't go researching shared ownership! It's a completely different scheme.

Thats odd beacuse all of my documents state "Shared Ownership" and not once mention shared equity. So they are false advertising?

purplelila-2007

You also need to consider the interest rates on shared ownership mortgages. A lot of these have been pulled , a lot of banks / building societies don't offer them anymore .

I considered shared ownership when I was looking to buy in 2009/2010 , but even back then the cheapest rates were 7-8%!!!!
Plus factor in the rent and service charges made it an unviable option . In the end we carried on saving and bought on the free market and moved in in March.

Shared ownership is a complete rip off , don't touch it with a barge pole in an unstable market where prices are going downwards.

282820

What a can of worms you've opened
I have noticed so many people on here moaning about shared ownership schemes and I think it's a bit annoying and absolutely ridiculous to call them scams.

I have just had an approval on a shared ownership scheme in my local village, I am buying 25% of a £150000 2 bed house, there are only a couple of houses in a brilliant sought after location and finished to a high standard. The valuer actually told me he thinks it's worth more than I am buying it for which is a good start.
To rent a house in this area of a similar size would be £650-700 a month, I will be paying less than £500 rent and mortgage combined.

I found that applying to the housing association was quite demanding they need an awful lot of information to approve you.
No problem finding a good mortgage rate 5.69%.

Good luck if you decide to go for it.

geoffky

the juliet balcony is so you can throw yourself off it when you find out the truth....in many years to come...then the penny will drop..