Shared ownership or not

tripleangel

Hi,
I am in the process of selling my house and will need to find a way of getting a place to live with my daughter and granddaughter. What does anyone think about shared ownership (I will have a little equity left)and what are the pitfalls?

jacobtheamish

In regards to property ownership its better than renting, not as good as buying outright.
It is only advisable based on individual circumstances.

Can you not afford a deposit for a standard purchase?

Shared ownership will often have a similar monthly commitment to standard, just you will make 2 payments each month, 1 for rent and 1 for mortgage

holly_hobby

The one thing Shared Ownership (SO) gives over private renting, is long term security of tenure (subject to non-breach of tenancy agreement etc).

However, along with your capital deposit for the share on offer say 30k for 25% etc, you will also be subject to a monthly rental commitment (which of course will be reviewable), together with a possible service charge (as my in-laws are, in respect of their HAs requirement for a gardener to service gardens ie mow etc, and its non-negotiable).

Of course if you go into straight social housing (council housing in old money !), you will have the same security of tenure as SO will provide (again subject of course to any breach of tenancy/rent arrears), but you may not be given a vast choice of property or location.

Why not sound out what social housing may be available to you before you make a decision on SO or not ?

If you are aged over 55, and if you have health probs, you will probably qualify for a social housing bungalow or low rise flat, where you'll be among other peeps your age.

Anyhoo, local CAB, housing office will guide.

Hope this helps

Holly