Shared Equity/Ownership & Property Prices

krazyk

Hello,

I'm looking to get on the property ladder this year and the only way I see me doing so is via the shared equity or shared ownership scheme. There is no way I can afford any property myself in the normal way.

But what are the catches in doing this? I know you have to give back your share and perhaps half of the profit made when you sell. What happens if there is no profit?

You have to pay rent (e.g. to a housing association) but do you have to get a mortgage too?

I read that property prices are not going to move much or perhaps even go down this year, what is the current view on property prices and what do the "people in the know" say about prices after this year?

K

viggette

Hello K

With regards to cost, if you have paid 50% of the market value when you buy it, then you will get 50% of the market value when you come to sell it on (to another buyer whom the council deem needy enough iyswim).
You can either part buy/part rent (shared ownership) or just buy a share (shared equity) you will need a mortgage either way.
Don't hold your breath though as it took me 4 years of waiting to be offered a property.

vig

krazyk

I've found a property advertised from an estate agent, I'm not on any list.

The blur says that I pay £129pm rent to a housing association. So if the mortgage is low then I would probably still be better off then where I am now, renting a house for £535pm.

K

krazyk

Hi there,

I think I've gone as far as I can down this route. I've remembered that I am on a housing list though my situation has changed a lot (for one I now live in the town), but gathering info from the local council and housing associations I find that funding is the only think stopping me from gaining a shared ownership property. And there is none now. All funding has been used.

There are many new homes being built in the area, so will find out if any of these will be shared ownership but other than that there is nothing else I can do.

Perhaps more funding will come?

K