Shared Ownership Advice

dpr666

vivster wrote: »

I was paying about £20 a month less in 2011 than I was in 2005.

Thanks for that, Its good to know what to ask about.

Can I ask how much you were paying monthly for all of those things in 2011? If you'd rather not I understand. I would just like to have a rough idea what to expect when I ask tomorrow.

Thanks again.

vivster

I was paying about £76 a month in service charge last year. When I got the place I paid around £94, I think. It will depend on the HA though. Some don't collect for a sinking fund etc. There might not be a lift etc.

There were 20 flats in my block. I was responsible for paying 4.1% of the total costs. Bigger flats paid proportionally more.

LJ-30

Hi
I brought and currently live in a shared ownership property and I have to disagree with the post saying it is a scam.

Whilst I would have loved to buy my property outright at the time I couldn't afford it and I didn't have enough deposit.

I currently own 55% and pay 3% in rent.

3 properties in my block have been sold in the last 2 years but the owners have found they have had to buy the remaining amount and then sell it as a non shared ownership - I think this is the best way and if you are intending on buying it all it will work for you.

Check with the housing company that you can buy 100% of the property at a later date as some have restrictions - also check in what percentage you can do this (mine is minimum 10%)

I pay monthly service charge and included in this is the same things that vivster quoted. Be aware that your service charge will increase each year (this shouldn't be by massive amounts) unless there is an underlying reason - potentially more building work etc.

As residents we have formed a group which liaises with the HA over our service charge basically they have been over charging up by quite abit where they "estimate" the charges for the next year. We have had money back and are expecting more as we have stayed on top of this, but this isn't just specific to shared ownership it can happen anywhere you buy where you don't own the free hold.

Just don't be naive about things, for me its been a good thing and works but I can see the other arguement.

geoffky

Get a proper house you can sell 100% of because if prices fall your house will be sat on the market at a price for lets say60% when with falling prices the normal house maybe the same price...shared ownership house for me, is for the financially illiterate...its a ticking time-bomb con....Do not fall for it..

dpr666

geoffky wrote: »

Get a proper house you can sell 100% of because if prices fall your house will be sat on the market at a price for lets say60% when with falling prices the normal house maybe the same price...shared ownership house for me, is for the financially illiterate...its a ticking time-bomb con....Do not fall for it..

If you read my original comments you will notice that I am planning to gain 100% equity with 5 years. Which means I will be selling at 100% of market value at the time.

And what of all of the "financially illiterate" people who have actually used the scheme above? They all seem to be very happy with their investments. I find it disappointing how the few people who are aggressively against it are never speaking from experience but always have a "friend" in a sticky situation. I think I will take my advice from the people who have experienced the scheme.

Also saying "Get a proper house you can sell 100%" is of no use whatsoever. The reason people use the part-buy/part-rent schemes is because they haven't got the capital to get onto the property ladder in the near future.

I myself am 25 and currently very close to having my 1st foot on the property ladder. If I was to buy a "proper house" as you say, I would have to wait another 5 years and spend roughly £48000 on renting a similar property (@£800pcm). Wouldn't you rather spend £22800? (based on my monthly payments for 5 years on FTBI scheme).

To follow your advice would definitely be "financially illiterate".

geoffky

You go ahead then but do not come back here when you are balls deep in it,
Moaning all about the scam because if you read the forums like i do and see the horror stories we have had you will sit up and take notice of what is being said.
I Stand by my financially illiterate quote because part of the scam is you believing you have no other choices,,you do..and you will be in negative equity the minute you walk through the front door compared to your neighbors who bought on the open market..

dpr666

Of course there's going to be more horror stories on here than success stories!! Why would someone come on to a financial help website just to say everything's fine in their life.

Every single subject on this forum has people with a negative viewpoint regarding every single subject you can think of. And funnily enough most of the people seem to have no personal experience of the topic they are being negative about.

dpr666 wrote: »

When speaking to the estate agents they said that the total monthly payment from me would be £310pcm. He said that £125 of that is rent and the rest is mortgage repayments with a 5% deposit.

My main question is does that seem right? To me it seems too good to be true. Does it mean that they will arrange a mortgage on my behalf?

As you can see, my original question wasn't asking about whether or not PBPR is a good idea. I was asking for feedback from people with personal experience regarding the monthly costs involved. So you have answered a question that was never posed, and have done so by calling people "financially illiterate".

Forgive me if I disregard your advice completely.

dpr666

geoffky wrote: »

arrange the mortgage on your behalf....you are stupid...

You are hilarious.:D

dpr666

also I've reported your abusive comments to the forum admins. Sorry in advance if you lose your account, but you shouldn't be trolling on forums where people are asking for help.

brit1234

LJ-30 wrote: »

Hi
I brought and currently live in a shared ownership property and I have to disagree with the post saying it is a scam.

Whilst I would have loved to buy my property outright at the time I couldn't afford it and I didn't have enough deposit.

I currently own 55% and pay 3% in rent.

3 properties in my block have been sold in the last 2 years but the owners have found they have had to buy the remaining amount and then sell it as a non shared ownership

Sounds like a scam to me. What if you can't get the money to get the 100% staircasing? Your trapped.

I can see why they would want you to buy 100% before you sell as it puts all the risk with you. You buy 100% at their valuation, then you have to get some one stupid enough to pay that amount when there are cheaper properties of the same dimensions/quality out there. In other words you now take 100% of the loses instead of sharing them.


Here is the main shared ownership/equity thread
https://forums.moneysavingexpert.com/discussion/3177256