Shared ownership lease unfair?

Mandog

My head is spinning a bit, Puddy!

I'm not sure whether your theoretical buyer would need a deposit - interesting point actually - given that she already has equity of 40%.

But the total money she needs to find (from mortgage or savings) is:

Her outstanding mortgage (20K) + the price of her second share (100K) = £120k

She'd also need ready money for legal fees, mortgage fees etc as the process is a new purchase, as well as the refinancing of the existing debt.

In a rush, hope this makes some sense.

rendi

Thank you for your responses to my original post.

I don't think SO is a complete scam, I just think anyone going into it needs to give it more consideration than we did.

pinkshoes - we didn't want to benefit from price rises - we couldn't afford to buy the whole house.

The reason I think it could be considered unfair is that if we had rented a council house for 16 years at a comparable rent - unlike some members our rent was originally about 5% and is now more than 10% (if we sold to another SO purchaser now they would pay less rent than we do) - we would have had none of the maintenance and insurance costs but would be eligible for a rebate of about 38%.

We are in the same position as Mandog and because of our ages any new mortgage we took out could only be over a fairly short term.

As for the charges, I made a mistake, it is the management charge that seems to have disappeared but it has been added into the overall rent.

Once again, thanks to all who have replied.