Share ownership,Can we ?

mememomo

Hi, I have some questions about housing, hopefully someone can give me answer.

My husband and his two brothers own this property. We have three bedrooms. Me,my husband and our 7 months old baby are in the same room. But,the room is not enough for us. We are planning to move out.

I heard about the share ownership. My question is, my husband's name is on this property. Can we still apply the share ownership ? (They are now still on mortgage,if we can move out,he will take off his name from this property)


Many thanks

lukecooper

I don't believe you can apply in the first instance if you own another property- I think his name would need to be off that mortgage before applying. You would need to speak to the housing association you plan to purchase with as they will be able to offer some specific and reliable information.

mememomo

Any other options to move out?
1-Council house-No chance to get it as my hasband own property
2-rent house-his income is not enough to afford a house by himself (I cant work as i need to take care of my sick baby)
3-share ownership-Only for first buyer (my hasbands and brothers own this property)
4-stay where we live-house/room is too small,and a lots problems for us

I really need anyone can give me some ideas where we can move. Please

kingstreet

If you can't afford to rent a property, what makes you think you could afford shared ownership?

You'll need 5% deposit, plus fees on top of that.

In income terms, you'll be vetted by the HA to ensure affordability and would need to be able to pay the mortgage, the rent and the service charges.

For example, a development we advise on has houses at £155,000. A 50% share is possible. That means a deposit of £3,875, fees of at least £1,000 and a mortgage of £73,625. At 5% over 25 years, the mortgage payment would be £430, the rent on the unowned share £178 and the service charge £46. That's £654 per month.

[Deleted User]

If he's on the mortgage for this property doesn't that mean he has equity? If so, how much? Can he sell his ownership to his brothers for a deposit?

mememomo

To: Kingstreet,
I saw "1,2 and 3 bedroom homes from £55,000 for a 25% share". Thats why we are thinking this way. My concern is,my husband's name on this property, that means we dont have chance to get share owership. Is it ture? Or HA will still consider our application? Do we have other choices to move out ?

To: Citricsquid,
I dont think my husband can get anything back when we move out.

lukecooper

I really think you need to contact the housing association offering these properties. A quick google search resulted in this page: http://www.orbitfirststep.org.uk/main.cfm?type=FAQP#homeowner which suggests you may be eligible with that particular HA. You need to check with the ones in your area. It would only take a quick phone call.

mije1983

mememomo wrote: »

I saw "1,2 and 3 bedroom homes from £55,000 for a 25% share".

I would imagine that is it £55,000 for a 25% share of a 1 bedroom place, which would still mean you are all in 1 room. 2 and 3 bedroom properties would be more expensive.

As kingstreet said, as well as the mortgage on the share you have purchased, you need to pay rent on the remaining 75% as well as a service charge. It's not as simple as just paying £55,000.

You need to speak to your local HA who deals with shared ownership and take advice from them. Hope you get something sorted.

kingstreet

mememomo wrote: »

To: Kingstreet,
I saw "1,2 and 3 bedroom homes from £55,000 for a 25% share". Thats why we are thinking this way. My concern is,my husband's name on this property, that means we dont have chance to get share owership. Is it ture? Or HA will still consider our application? Do we have other choices to move out ?

We can't answer that. We can generalise, but we can't give you specific answers for a specific area, particularly if you haven't actually told us the area.

You need to check the qualification requirements with your local HCA Homebuy Agent and Housing Association.

As mije has suggested, "from £55k for 25%" suggests that will be the cost of a 1 bedroom home.

That would suggest an open-market value of over £400,000+ for a three bed house. To rework my example, you would have;-

houses at £400,000. A 25% share is possible. That means a deposit of £5,000, fees of at least £1,500 and a mortgage of £95,000. At 5% over 25 years, the mortgage payment would be £555, the rent on the unowned share £688 and the service charge, maybe, £100. That's £1,343 per month.

HA, or HomeBuy agent is your first port of call...

[Deleted User]

We moved into a shared ownership property some years ago. It was new build.., and it was a decent build quality. But as has been pointed out above.., by the time we'd paid service charges (in our case over £125 a month even though it was a house, not a flat, and gawd knows what was done for that money, the gardens were done once every six months lol), rent on the remaining 50% share, and covered the mortgage costs it was a very expensive way of living in a roomier place. But there was no way we had the income to get a mortgage on even the most basic house. So, we had no options at the time.

You also need to be careful with other disadvantages as well. Sometimes shared ownership properties are place where they are because the land is cheap. In our case it was on the edge of a really bad council estate. You couldn't go out at night and walking out of the estate during the day could lead to harrassment. The house was burgled. I saw other shared ownership properties had been built in out of the way places, with few transport links. Nowadays shared ownership properties tend to be built on private estates so u may find this isn't a problem.

mememomo

If "£55,000 for a 25% share" ? That means a deposit of £2,750
a mortgage of £52,250.

How much for the fee ? At 5% over 25 years, How much for the mortgage payment ? the rent on the unowned share ? services charge ? And How much we need to pay per month ?

kingstreet wrote: »

We can't answer that. We can generalise, but we can't give you specific answers for a specific area, particularly if you haven't actually told us the area.

You need to check the qualification requirements with your local HCA Homebuy Agent and Housing Association.

As mije has suggested, "from £55k for 25%" suggests that will be the cost of a 1 bedroom home.

That would suggest an open-market value of over £400,000+ for a three bed house. To rework my example, you would have;-

houses at £400,000. A 25% share is possible. That means a deposit of £5,000, fees of at least £1,500 and a mortgage of £95,000. At 5% over 25 years, the mortgage payment would be £555, the rent on the unowned share £688 and the service charge, maybe, £100. That's £1,343 per month.

HA, or HomeBuy agent is your first port of call...