Shared ownership yay or nay? (given my circumstances)

olympicsmummy

My current circumstances are:

single mother of one on part time income of £12 000

I have lump sum of £70 000

I live in West sussex and cannot get a 2 bed flat for £130 000 (which is what I can afford based on a mortgage of say £48 000). Average 2 bed prices here are around £200 000

I'm considering shared ownership .. owning a 40% share of a 2 bed flat in town centre of Horsham... price for 40 % share would be around £90 000

I can use say £40 000 of lump sum as deposit then get mortgage for say £48 000 / £50 0000

My current rent is 925 a month which i cope with ok so i know I can afford the mortg/rent on shared ownership

My child is 18 months so in 2 years or so in 2 years or so I my salary will go up to a good wage (£25 - 30K) However I cant wait two years to buy as my parents deposit may not be available in 2 years time for various reasons

da_rule

It would depend on how much the rent on the remaining 60% would be and whether you could afford it. And what the terms/length of the shared ownership is.

olympicsmummy

What is a good term/length on the shared/ownership?

da_rule

Sorry, what I meant was that unless you can afford to buy out the remainder of the property, after 5 years you will start to pay a loan fee.

brit1234

da_rule wrote: »

Sorry, what I meant was that unless you can afford to buy out the remainder of the property, after 5 years you will start to pay a loan fee.

That's shared equity not shared ownership, neither I would recommend.