Shared Ownership buying

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geoffky wrote: »

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..

Bit extreme?

neednewhouse

I promise to post on here just before I jump, just so you can feel smug

NNH

clangnuts

gingertips wrote: »

elf? If you bought it and then had to sell it the next day - how much would you be in negative equity for?

I think anyone buying a house and selling it the very next day would be in negative equity, considering the associated costs of buying a house. Shared ownership or not.

clangnuts

Shared ownership is a much more secure tenancy than private renting. I've rented for years, and at any moment the LL can decide to sell the property from under you (happened to me twice in the last 10 years), costing me thousands in moving costs, deposits etc. Private renting just isn't secure. If you can't buy conventionally, then I think Shared Ownership is a very good option for some people. Like anything, I'm sure some SO aren't as good as others.

poppysarah

clangnuts wrote: »

I think anyone buying a house and selling it the very next day would be in negative equity, considering the associated costs of buying a house. Shared ownership or not.

Not if they have a deposit they put in.

Sami_x

Hi there, I'm new to the forum but have been reading threads for some time.
My partner and I are stuck in a shared ownership deal. Tom brought 60% of a £110,000 flat in 2008. He was desperate to move out of his mum's house and didnt realise how much his life would change in three years- I now live with him and we are desperate to start a family. This means we need a bigger place, ideally 2+ bedrooms plus.

I can see from this thread that Shared ownership is not ideal for some but has anyone got any advice on how my partner and I can sale the thing? How likely would a SO properly sale? Would we have to buy the whole lot to have any chance of selling? We are saving like mad for a deposit on our next house and possible/likely negative equity on our flat. We are both 32 this year and feel that all the things we want to do we cant because of a shared ownership deal.

Another worrying thing is that there seems to be a large amount of SO houses being bulit in our town.

Any advice greatly appreciated or any positive stories of SO schemes....its all rather depressing

poppysarah

Sami_x wrote: »

He was desperate to move out of his mum's house and didnt realise how much his life would change in three years- I now live with him and we are desperate to start a family. This means we need a bigger place, ideally 2+ bedrooms plus.

How long has it been on the market?

How small is the place you're in now?

Sami_x

Its not on the market yet. Its a one bedroom first floor flat. was a new built in 2008. Paying £390 morgage and £160 rent a month. We have 4k saved and are saving on average £500 a month.

dopester

'Shared Ownership' for a house or flat is as bizarre a concept to me as if someone was trying to promote Shared Marriage.

Plundering my memory banks for something not often raised in Shared Ownership discussions... I seem to recall in many instances a Shared Ownership buyer, even if paying thousands of pounds for a share, doesn't actually have any equity in the property as such.... but money down into a lease. A lease they can sell on to another buyer, if they can agree a price and transact.

For example, if someone here as a buyer bought 1%-99% of a property via Shared Ownership, all they actually have is a lease. And there could potentially be complications with that, especially if shared ownership person who has paid in even 50% or more over time, gets into arrears.

I'm only going from the information in this story.

Apparently, nearly 1 in 100 households in England has a shared ownership lease. It therefore follows that 1 in 100 households are in for a very nasty shock, when they discover that they do not necessarily own a share of the property!

What the householder owns is the lease and nothing else – and once the lease has gone (when possession is given to L) then that is the end of the householder’s stake in the property.

In response, she sought an order for sale, arguing that she had a half share; the court disagreed saying that the relationship she had with L was not that of trustee and beneficiary (it was solely one of L and T). The 50% capital payment made on purchase had not bought her a half share in the property, it had merely bought her the lease – and nothing else.

This decision goes to the root of shared ownership – and, frankly, drives a coach and horses through it. It is of profound significance for all shared ownership householders. But, surprisingly, it has received little publicity.

http://www.practicalconveyancing.co.uk/content/view/10570/1124/