Shared Ownership - Opinions please.....!

NeverAgain_2

Seems to me many of the problems with shared ownership occur when the buyer gets into financial difficulty, often caused by seeing the scheme as means of getting something they can't afford.

Presumably the OP is confident he can meet the projected total outgoings.

TheSaint_UK

NeverAgain, thanks for the post. Well to be honest this is part of the issue. How exactly can I work out the projected total outgoings??

I know I must seem like a complete Rookie but I really appreciate any help!

brit1234

As the others said shared ownership is a scam. Far too high costs, 100% of the responsibility and 0% of the ownership.

Just think of all those key workers with shared ownership properties. Their wages are frozen for a couple of years yet the the service charge and rent goes up by RPI or more.

Also many people don't want to buy shared ownership properties off you and many can't if you lease more than 25% of it. Nearly said own 25% there, but with shared ownership you never technically own it in the legal sense.

and_another_thing...

Why not look into shared equity? See if any schemes are running in your area. Some SE schemes allow you to buy and sell on the open market.

And by the way, I own a SE flat, I am a public sector worker, my wages have been frozen however the rent part has only increased by £1.42 per month so entirely manageable.

NeverAgain_2

TheSaint_UK wrote: »

NeverAgain, thanks for the post. Well to be honest this is part of the issue. How exactly can I work out the projected total outgoings??

I know I must seem like a complete Rookie but I really appreciate any help!

Are there any other shared ownership houses near the one you are thinking of?

Knock on a few doors and ask people how the scheme works for them.

brit1234

and_another_thing... wrote: »

Why not look into shared equity? See if any schemes are running in your area. Some SE schemes allow you to buy and sell on the open market.

And by the way, I own a SE flat, I am a public sector worker, my wages have been frozen however the rent part has only increased by £1.42 per month so entirely manageable.

Shared equity is equally as much as a scam as shared ownership, both are designed to artificially inflate house prices. With shared equity you pay 20-30% more for the property and get hit buy the loan time bomb after 5-10 years when you have to pay the equity loan back.

and another thing I think you are a little confused as there is no rent with shared equity just the equity loan instead.

HARSA

Oh well OP. I read your thread few times and wasn't going to contribute but decided to in the end...

The scheem has been very great for me ..... Read the many threads on this forum and make the right decision for you & your family.

There are people with very little knowledge about the scheme and also with their own distorted agendas screaming such words like "Horror", "Scam" etc.

Goodluck

and_another_thing...

brit1234 wrote: »

Shared equity is equally as much as a scam as shared ownership, both are designed to artificially inflate house prices. With shared equity you pay 20-30% more for the property and get hit buy the loan time bomb after 5-10 years when you have to pay the equity loan back.

and another thing I think you are a little confused as there is no rent with shared equity just the equity loan instead.

OK in 'rent' I meant loan fee - just to make it easier for the OP to understand.
How exactly did my SE flat cost 20-30% more than similar flats which were bought with a 100% mortgage? I bought my flat on the open market, anyone could have bought it, not just people on my SE scheme.
I also do not know what this 'loan time bomb' you mention is. I started to pay back the equity loan after one month. There will be no 'surprises' in 5-10 years. I pay back the loan when I sell the property or when I've paid my mortgage, whichever is sooner.
I really think you, Brit, are the one who is so very confused with these schemes.

geoffky

Brit i do wonder if it is best that we sometimes just let the people find out the hard way...The sellers of these scams rely on people who are financially illiterate.

read the comments..
http://www.insidehousing.co.uk/6501770.article?PageNo=1&SortOrder=dateadded&PageSize=20

http://www.thisislondon.co.uk/standard/article-23529109-our-shared-ownership-dream-home-turned-into-a-disaster.do

and_another_thing...

geoffky wrote: »

Brit i do wonder if it is best that we sometimes just let the people find out the hard way...The sellers of these scams rely on people who are financially illiterate.

read the comments..
http://www.insidehousing.co.uk/6501770.article?PageNo=1&SortOrder=dateadded&PageSize=20

http://www.thisislondon.co.uk/standard/article-23529109-our-shared-ownership-dream-home-turned-into-a-disaster.do

Note that these links relates to shared ownership, not shared equity. Very different schemes. OP as I said, investigate local shared equity schemes.