Shared ownership mortgages

harvey115

gazfocus wrote: »

As has been said many times...

Buy 100% of a non-shared ownership house for £150k, total house value £150K
House value drops to £120k after purchase
Buyers 100% share now worth £120k
£15k loss in value

Buy 50% of a shared ownership house for £75k, total house value £150K
House value drops to £120k after purchase
Buyers 50% share now worth £60k
£30k loss in value

I really fail to see where the 'scamming' is happening!

You would split the money at the end 50/50 so the loss will also be split 50/50, thus £15K. I do not understand why only you would incur the loss and not the other sharing party?

Now I see, you made a mistake in the above the numbers should be the other way around:

100 % - From £150K to £120K - Loss of £30K
50 % - From £150K to £120K - Loss of £15K to both the parties

I do not see any problems in this?

The_J

You've got your numbers the wrong way round gaz.

Plus, you pay rent on the other half so there is additional cost.

gazfocus

that's what happens when you try and post on a phone

Yes, you pay rent, etc but the amount you pay in rent is far less than the mortgage payment would be for the equivelant share.

Example,
The house we're buying is £62k for 50%. The mortgage payment is going to be around £350pcm whereas the rent for the other 50% is £200.

brit1234

jimsmillions wrote: »

Bought house in 2000 on a scheme called Homebuy. We picked a house ourselves we took out three quarters mortgage and the housing association bought the other quarter. If I sell obviously I pay them a quarter back of the current market value. A great investment for them at current prices which is no doubt why they did it.

Please point out where I am being scammed? From the day I moved in have not had so much as a letter from them.

You bought near the bottom of the housing bubble. Back then people bought bigger shares. Over the years these shares plummeted down to about 25% and then down to 10%. So if you bought in2007 with a 10% share would you say it was a good investment?

You profited by an unsustainable housing bubble fuelled by low interest rates, mass fraud and irresponsible lending which eventually stocked a global financial meltdown.

Its not just the inflated price that makes it a scam but all the additional costs such the rent and service charge rising faster than RPI, costly fees for everything and the dozens of nightmare restrictions. Don't believe me then look at all the threads on MSE.

Shared Ownership is a scam, I wouldn't recommend them to anyone let alone anyone on a money saving forum.

gazfocus

brit1234 wrote: »

Shared Ownership is a scam, I wouldn't recommend them to anyone let alone anyone on a money saving forum.

Yaaaaaaaaaaaaaaaaawwwwwwwwwwwwwwwwwwwwwnnnnnnnnnnn

The_Road_Warrior

gazfocus wrote: »

Yaaaaaaaaaaaaaaaaawwwwwwwwwwwwwwwwwwwwwnnnnnnnnnnn

Yawn all you like, but SO is not the way forward and favours the HA and home owners in the local area (Land Registry entry of full price paid for the flat/house). Also, with SO you have the worse of both worlds in that you are a) renting and b) responsible for the upkeep of the fabric whilst at the same time paying a mortgage too!

What about when you come to sell? You do realise that the HA have to agree with the valuation and one's choice of EA too? This sh*t has been documented everywhere, are you unable to read or has your head been up your back passage for 10 years? I suspect it is probably both!

EDIT: isn't it odd how MSE ceases to become 'Money Saving' when it comes to Shared Ownership schemes? I'm amazed at how the proud Money Savers get all annoyed when someone points out the waste of money which is Shared Ownership!

Cornball

It depends what fits your personal circumstances.

I own a 25% share of a 2 bed with a big terrace, put down 20% deposit, pay less than £700 per month for rent/mortgage/service charge, live 5 minutes from excellent transport links in Zone 4 London. The same flat rents for £1200.

There are differences to a regular home purchase but I did the research and picked something that suited me, my finances and my long term plans.

As long as you go into it with eyes completely wide open, knowing any and all restrictions you should be fine.

gazfocus

Cornball wrote: »

As long as you go into it with eyes completely wide open, knowing any and all restrictions you should be fine.

Exactly !!

amb731

Sorry to post on another thread - could find how to start a new one...

I'm looking to buy a 60% share of a new build by shared ownership. I feel I cannot get unbiased information. Do I have to use a broker? (I've been recommended one, and be told to see the recommended one for an affordability check) and whilst I don't have to go with them, I am not sure of my other options. The broker is suggesting that I need to use an specialised shared ownership broker (with a fee of £400). Is this the case or can I use any broker? Do I actually need a broker? The same question goes for the solicitors, do they have to be specialist shared-ownership ones or can I go with any solicitor?

Advice greatly appreciated!

Thanks