Shared Ownership

ShaneJoshua80

I have recently purchased as Shared Ownership property and have a 55% share paying rent on the rest on a two bedroom flat which was valued at £290,000. The flat is in Acton in a developement in Bromyard Avenue it is on the top floor with a roof terrace our own parking space which set us back £20,000 as well.

We will be paying a mortgage of around £950, rent of around £250, £150 service charge a month plus the loan on parking space. I earn around £32,000 as a key worker and my wife £35,000 as a key worker. My wages should increase if I look to take promotion which I will do.

I feel in order to get the full benifit of this purchase we need to increase our 159,000 share to as close to 100% as possible. Is there anyone out there who would suggest what the most effective way to increase this share will be


The flat is in a first class developement and when the new Shopping centre in Shepherds Bush is built(Apparently it will be bigger than bluewater) surely the value will rise? I want to be in a situation that when we go to sell eventually that we are getting the most of the equity.

How much would our total wage have to increase for example for us to take on a further 20% in addition to the £159,000 we own?

roughly what kind of joint wage would we need to own it outright so we are talking £300,000-£320,000

Timmne

It depends on how much property prices are going up in your area - I'm only a novice, but we bought a S/O property in July 05 and bought 50%. The way it was described to us was that you never really need to staircase, as if the property goes up 40k and you own half, £20k profit is yours to use as a deposit in buying a house outright....

This, when looking at our figures works out fine but looking at yours, I'm not so sure!! You really do pay a lot down there!!

Fritha_2

We live in a shared ownership property and my advice to you would be to talk to your housing association about how you staircase in your area.

We use we have the option to buy another 25% whenever we want but we purchase it at the current market value of the house and we have to pay to have it valued.

For us we own 50% if we bought another 25% we'd own 75% another 25% would take us to 100%. So can actually own the whole property if we wanted. I don't know if it's the same in all areas tho :-)

scheming_gypsy

where i am i think we can buy in smaller chunks, possibly 5 or 10% upwards at a time.

You will need to wait till after a year though and then the increase is on the then market value.

It was scary ready your post though. My house is worth 130k - brand new, i pay £420 a month mortgage on 60% and £51 a month rent.

Graham_Devon

Remember though, buying 5% would be a little silly. I can do the same with mine (though can only ever buy 80%, but then would be rent free as it has to stay shared ownership as not enough houses).

Buying 5% would mean solicitors fees, valuations, mortgage fees etc etc, so your better off buying a big a chunk as you can. Could cost around 2k in fee's just to buy an extra 5%, whereas the same 2k in fees could buy you an extra 25%.