shared ownership without mortgage?

deebee33

Does anyone know if it is possible to buy a share in a property, part buy/part rent under the shared ownership scheme, but with a lump (cash) sum instead of getting a mortgage?

For example, if a person has £150k towards a shared ownership percentage, so no mortgage required, would they still be eligable?

ging84

it is unusual, because shared ownership is usually on affordable housing through housing associations, and someone with a large amount of savings would be unlikely to qualify
when i bought mine i was able to pay cash, this due to being given an approval in principle for a mortgage which was later withdrawn and my dad borrowed the money as a mortgage against his house.
I also spoke to someone who ended up with a shared ownership flat where his flat was subject to a compulsory purchase order because the estate was being torn down, and was not worth a lot so the money he was given wouldn't have been enough to purchase anywhere, but again this was an unusual set of circumstances

TrickyDicky101

Do you have earnings which could support a mortgage? If so, I struggle to understand why you would want to go the Shared Ownership route - could you explain your thinking?

deebee33

no, I would not be able to get a mortgage, due to my age, my employment history etc.

I have been living in a family property (not in my name) that needs to be sold, so will aquire a lump sum, but become homeless, I am not mortgageable for various reasons and am trying to assess my options!

ging84

i would go and talk to the your local housing association, they may well be able to help you given your circumstances

carefullycautious

I worked with someone whose elderly parent returned from abroad and purchased shared ownership with lump sum. So it must be doable. This was a house, not a complex for the elderly.

I would contact the housing association and see what their policies are

deebee33

many thanks, I too have been working abroad (voluntary work) and before that had my own business that failed, so my credit rating is dire, (but the money will fix that in 6 months) but lack of regular employment and my age makes means I would not qualify, nor want a mortgage, but I dont want to throw the money away on private rental.
I just want a little security.

pr0berts

I did exactly this 4 years ago and it was fine with Orbit.

kingstreet

I was just about to say, one of our HAs has agreed to something like this and they are in the Orbit area, so it is possible, but I have a feeling if there's a shortage of such property in a particular area, you won't be treated as a priority.

dimple123

deebee33 wrote: »

Does anyone know if it is possible to buy a share in a property, part buy/part rent under the shared ownership scheme, but with a lump (cash) sum instead of getting a mortgage?

For example, if a person has £150k towards a shared ownership percentage, so no mortgage required, would they still be eligable?

Hi i'm currently in the process of buying a shared ownership, and i'm buying my share with a cash sum. My deposit is big enough to buy a house with a mortgage, however due to mine and my partners age, and lack of credit history it was not possible for us to do this. For us buying our share outright was a better alternative. As we will only be paying rent on the housing association share and it's cheaper than what we're paying in rent at the moment private renting. Obviously we are responsible for all repairs but we've factored all this in. It's deffo possible, so I'd enquire with the local housing association as each one has different rules.

Tykva

Hello everyone,


I think my question is of similar nature. My husband owns a flat 50-50% with his brother (he has a place of his own). We want to sell it and move to a bigger place. To buy a bigger place we plan invest the whole sum of this flat (brother agreed to reinvest his share into bigger property as well) and take a mortgage on our own names (brother will not participate). Is it possible? In the documents we will state something like brother owns 25% and we own the rest. Obviously when we eventually sell bigger place too, brother will get 25% of the market value then. Any advise or precautions of doing this way? Thanks a lot!