I already have my name on a buy to let so cant buy in London - HELP

Loopgames

Ok - well I'm going to give you my own opinion based on my own experience living in london.

I have lived in Northwest london and East london. I would agree that ideally you should aim to buy a property that you own 100% if you can. Obviously you don't think that is possible with your salary and deposit.

But from what I can see you have a budget of around £100k...can you not purchase a flat in the ilford area for less than that. You can afford something like this studio flat

http://www.rightmove.co.uk/property-for-sale/property-33280276.html

It's near the station so you can be in central london fairly easily.

I would say look at the shared only schemes as a last resort rather than a first option...there are other options - just a case of doing a little detective work.

BitterAndTwisted

Fate is dealing you a helping-hand. Part-rent/part-buy is not a sensible option long-term. You get all of the disadvantages of owning with very few of the advantages. Some of these disadvantages are not apparent when you're living there but become all too clear once you try to sell. The market for second-hand part-rent/part-buy is very small and you may not get what you think it is worth either. Meanwhile you're living in a mixed development with some "owners" but the majority of other residents will be LA or HA tenants who don't always have the same life-styles or aspirations as you do.

Read a few of the threads on this forum to see how unhappy some people have been with their purchases. Now, buying a shared ownership or shared equity house might be a different thing altogether but a flat? Never.

kikilamour

Thanks guys you have got me thinking already.

so look preferably at shared equity HOMES or just getting a mortgage and branching out in my own?

hazyjo

You're saying 'back then' you thought it was a good idea to 'invest in something'. Sounds like you still have that train of thought. Has the property you own increased in value? How long are you tied in with the council for?

Once you are in a position to sell, you might want to consider parts of East London/Essex to buy in (would only be a flat in your current situation). Can't see it being in the immediate future though.

If you've only saved £12k in 9 years - even with the help of 'discounted rent' (and are on a relatively low salary for London) - it doesn't sound like owning something (in London or anywhere) would necessarily be the right step for you just yet. Any chance of a major salary increase? Or are you able to knuckle down for a couple more years and save a bigger chunk of money?

As suggested, check out this site for detailed info on SO/SE 'schemes'. Not many favourable comments and not something I would ever have considered.

Jx