Confusion : Shared ownership house or shared ownership flat

and_another_thing...

Go for whichever property is in the better, more affluent area - DEFINATELY.

I bought a shared equity flat in a great part of London. It has risen in value despite there being a house price slump because the area is very sought after.

smileytiger

On the house what is the service charge for????

I can understand them on a flat as they have to maintain communal areas etc - but you shouldn't be paying it on a house as you are responsible for upkeep pf building & land your property is on up to boundary line - not the HA or whoever owns other half.
Tell them you'll do the upkeep and then can knock off the charge - i wouldn't pay it. ( i live in a SO & have done so for 16 years very happily and have never heard of a service charge)

My only advice would be to read & re read all the small print before you sign to make sure you are getting what you want .x

andes_2

thanks, will do further reading on the small print.

GDB2222

andes wrote: »

Thanks mate, but seriously, I don't get your point
Rent for 2 bed flat in a decent area in Oxford could start from £850 to £1200. SO scheme offers a property (priced at 200000, 30 % share)- for example rent inclusive service charges 500 + plus repayment mortgage of 260/ month=£760/ month.
Essentially, 3 years or 5 years down the lane, not only we are gaining from the difference in rental, but also the principal amount that we would have paid (roughly £3500 for 3 years). In total, buying a SO 2 bed flat could save around £6740 (for 3 years) against renting in this area.

In what way renting is more attractive? how many years one has to save for securing 15 % deposit of £30000 for buying a £200000 2 bed flat at a nominal interest rate (This is a conservative price- Although actual prices for a normal house in Oxford may be higher)

But what happens if you are paying £20-30k too much for the place? Then you get stuck there in negative equity. You keep talking about outgoings, not values, and that's the SO trap in a nutshell.

scheming_gypsy

if it's 20 - 30k over priced then you tell them it's over priced. Just because it's shared ownership doesn't mean you pay over the odds for the sake of it; there's no difference than buying from a private seller. You like the place, and if the price is right you go ahead with it, if it isn't right you tell them it's too expensive. They'll either review the price or you walk away