Shared ownership worth it if can buy outright?

kingstreet

No. A flat continues to be leasehold. You are purchasing the remaining share of a leasehold flat so you'll own all a leasehold flat.

Frankly, you don't want a freehold flat because of the inevitable problems when you want to sell.

Idiophreak

Forgive me OP, but just to check they're available for shared ownership, rather than shared equity?

From what you've said, I'll assume it's the latter, in which case I'd advise against it, if you can afford to buy outright - there's not much point paying rent on something you could afford to buy. And the service charges, fees etc have a horrible habit of biting people...

Shared equity's a completely different kettle of fish - it's *absolutely* worth doing, even if you could afford to buy 100% of the property outright. Unless house prices go into overdrive again...but I can't see that happening any time soon...

Moose_Kitty

opinions4u wrote: »

Shared ownership properties struggle to hold their value compared to the rest of the market.

A wholly owned property on a shared ownership development would be likely to have the same issue.

If the housing association received grant funding from the Governmet in order to afford the build of the property. It will be a requirement that the lease contains certain clauses, and often the model lease will be used.

In order for a shared ownership to be sold it must be valued by an RICS surveyor (Royal Institute of Chartered Surveyors) who are qualified surveyors. They must value the property based upon an ope market price, regardless whether it has a Section 106 or not.

Therefore a property should be competitively priced however do bear in mind the price will be based on actual sold prices, not estate agents advertising price (not many property sell at advertising price on the open market, must will accept offers lower!)

With regards to buying shared ownership, if I can't buy more than 75% of the property and your circumstances aren't due to change in the next couple of years it can be a good scheme. Yes you pay an element of rent but with the part your buying at least your paying your mortgage and gaining some equity in a property rather than paying someone's mortgage by privately rented. However if you can buy 75% of more then it isn't right for you so either consider shared equity where you usually buy about 80% or buy on the open market