Shared ownership

Frankie56

You could be right there. Although my sister fully rents a house and pays the same as I do.

Graham_Devon

Frankie56 wrote: »

Scheming_Gypsy and Wymondham - No they don't live in my house but, if I rented all of it, they would be liable to replace as many boilers as were needed. They own 3/4 of this house and so I am renting 3/4 of it so why should they not pay 3/4 of the repairs? And I don't want something for nothing, just feel I am paying for repairs for something that the housing association own.

It's not like 100% rental though.

Think of it another way. Why should the housing association pay for a new boiler and windows for you, only for you to turn round 3 months later and say "thanks very much for the windows and boiler, I'd like to buy the reamining 75% now ta very much".

Unlike 100% rent, you can buy the remaining shares at any point.

To turn the question around, why should the housing association lose out when you have had them pay for 3/4 of the repairs, only to turn round and buy them out at your own free will?

Unfortunately you are no different to anyone else when it comes to affording new heating or boilers. 100% owners are very often in the same boat.

I'd put money on the fact that your 3/4 rent is no where near 3/4 rent of that of a rental on the open market. Therefore it's unfair to believe you should get the same service as someone paying far more rent per month.

poppysarah

Frankie56 wrote: »

Thank you for your replies. I took this route some years ago. I could not afford a mortgage and used the money from the sale of the house I had owned with my ex to pay for the 1/4 I own. I have never been able to afford to buy any more of it. I only did this as I needed a home for my children.


No, I'm not entitled to any help. My children left home 16 years ago and I'm only 56 so can't get any help whatsoever. I posted this hoping someone might be in the same position and know where I could get perhaps a cheap loan if and when I need it. Or if anyone had successfully got any help from their housing association. I only just manage to pay my bills as it is and, if the heating breaks, I cannot afford several thousand pounds so will have to do without.

Confused.

Whilst I agree it's probably the biggest con of the century for you, it is one you presuambly were of sound mind when you signed up to.

People desperate to 'own' a property have fell for the idea of shared ownership because they like the idea of 'not renting'...

SO seems to be full of problems and doesn't solve the fundamental problem of high house prices.

and_another_thing...

sirmosh wrote: »

Unfortunately this is just one of the reasons why shared ownership is such a scam and they should be allowed to market it as an easier way to get on the property ladder since in the long run it only causes more headaches and costs even more money.

It's not a scam and nor is it a con as poppysarah has suggested.
The OP would have been aware of the T&C before signing on the dotted line. Now they are feeling the pinch as most of the country are and are trying to blame someone else for their predicament.

Sorry to sound harsh but no one should enter into such a huge financial agreement without fully understanding it first.

I own a SE property myself and although my share is over 50% I would never expect any one else to pay for repairs or replacements -totally my responsibility and I am happy to do so. I knew what I was getting myself into.

poppy10_2

and_another_thing... wrote: »

Sorry to sound harsh but no one should enter into such a huge financial agreement without fully understanding it first.

I agree, but unfortunately SO schemes target exactly the sort of person that is likely to be financially naive, preying on their urgency to "get on the property ladder before it's too late" and encouraging them to overstretch themselves to buy a fraction of an overpriced property.

and_another_thing...

poppy10 wrote: »

I agree, but unfortunately SO schemes target exactly the sort of person that is likely to be financially naive, preying on their urgency to "get on the property ladder before it's too late" and encouraging them to overstretch themselves to a fraction of an overpriced property.

There is some thing wrong in the way that these schemes are made to appear ' too good to be true ' and without pitfalls. As always the vulnerable in society are targetted but ultimately we are all responsible for our actions.

smileytiger

I live in a shared equity which i bought 50% share in 1995 - at the time yes it was the only was i could afford to buy. In 16 years the only contact i have had with the developers who own the other 50% is to discuss rent rises/reductions (yes sometimes it goes down:D - as it's linked to house value) I knew to all intents and purposes it was my house & my responsibility for everything else.
I will be selling up after Christmas as we are now going to downsize & they are entitled to 50% of the profit of the sale of the original house ie Any improvements which i have done which have added value they are not entitled to profit from. There are very strict conditions in the trust deed i signed on purchase.
So whilst shared ownership can be horrendous - you must read all the small print before you sign and realise what you are signing up to - it's not a cheap way to own your own home.
That said i've been very happy - i've a lovely 3 bed semi in a great location, have raised my children here etc so i personally have benefitted from having a house that i would have never been able to buy outright & when i sell i'll walk away with a decent bit of equity on my 50% as i have hardly any mortgage left to repay - that's how i look at it

Frankie56

d The housing association have first chance on buying if I decide to sell? If the house is in disrepair, they would have to pay out for all the repairs before they resell anyway.
The HA is supposed to be non-profit-making. The house was £44k when we bought it. It's worth about £100k now so they will make around £64k profit if it is sold now. They get that even though I've paid all the repairs, all the solicitor's fees, all the searches and for the electrics and plumbing/heating to be checkeand I have to pay all of the buildings insurance (I could get this cheaper elsewhere if I took it out myself but they use umbrella insurance). And I'll have to do it all again if I sell. If I owned it all, I'd have to pay for everything but I'd get all the profits. If I rented 100%, I'd pay none of this but get none of the profit if the house is sold.
Suppose I'd bought a 1/4 of a house with another person. We'd both be expected to pay our share of everything.
I did know what I was signing up for and it looks as if I'm stuck with it. A few people have said they feel this type of thing is a scam. I have to agree.

and_another_thing...

If you sell for 100K than you will get a quarter of the profit - 16K, that HA will get the rest of the profit. Yes, HA are non-profit organisations but that clause of the sheme is a key point, usually made very clear to potential buyers. If your property made a loss then the HA would also make a loss.

Did you have a deposit when you bought your home?

Could you use the profit you make to go towards a new place if you do sell?

brit1234

I'm glad the government have stopped funding shared ownership, it is a complete scam. The move now is to affordable rent, so that will cut off the maintenance issue and people getting trapped.