Shared ownership/key worker scheme

Taadaa

ooobedoo wrote: »

so if I had 30k to put down, the price is £170, so we would have pay off mortgage on 40k, put then keep buying more, is this possible?

Can I just point out that if you have more than 8k of savings, most schemes will not consider you.

ooobedoo

oh.....back to the drawing board, thanks for the heads up

lynzpower

Taadaa wrote: »

Can I just point out that if you have more than 8k of savings, most schemes will not consider you.

I dont know where you heard that, it certainly never happened like that for me.

I bought my SO flat in 04. It worked quite well for me, I could have never bought on my own the flat was worth 200k, slightly cheaper than others in the area at that time.

I went in with 8k as a deposit, so im certain you can put more down if you wanted, there seemed no upper limit on deposit ( after all its your LENDER who knows what deposit you have , not the HA, its not thier business)

If there *were* any restrictions like this, then whats there to say that in x years you might "come into money" and want to pay off a lump sum of the mortgage -again this is between lender and buyer, nothing to do with the HA.

the HA however, will put a top limit on earnings, in my case it was 45k as a single person, but then im in london nad things are a bit pricier.

in some parts of the uk tho, theres little difference between the SO flats and open market, so make sure you do your maths. clearly if you can afford to buy something outright then that can be better.

one interesting thing about SO ( as opposed to the scheme BW was on) is that there is nothing at all to stop you paying off the share you bought ( which in my case was 78k) and then continuing to rent the rest - indeed, you can then have space to save up lump sums and then throw at the property without incurring interest on a mortgage - ie the bank pays you rather than vice versa.

Rents rises are very strictly monitored by the Housing Corporation and as I recall it they can only rise with inflation, mine went up by 7.50 per month in my 2nd year. Hardly ground breaking, and cheaper than the rises on mortgages

Edit to say, I sold mine and wandered off with a handsome profit. I havent bought again, and dont intend to for the foreseeable. We sold cos the lease in our flats forbid pets, but fortuitous all the same.

shafeeq

I did same in May, bought a house for £147K, I paid about 53%, HA paid the rest, they have share in the house. I Pay no rent, the day I sell the property HA will get there % depending on what it sells for. If I don't sell I pay nothing.

Or anytime I can buy further %, by geting the house valued and increasing the %.

brazilianwax wrote: »

Not necessarily. I bought my first house on shared ownership - HA put in 30% and I had a mortgage for 70%. I never had to pay the HA anything, and I owned the house (they had a financial charge on the house, but no legal ownership).

I could have bought more if I'd wanted to, but never did. I bought the house for 40k.

8 years later I sold for more than 3 times as much. The HA got 30% of the sale price back, I paid off what was left of the mortgage, and walked away with the rest (more than i had originally bought for)

For me it was a fantastic move.

Taadaa

lynzpower wrote: »

I dont know where you heard that, it certainly never happened like that for me.

I heard it from the horse's mouth, ie Tower Housing. And we had to attend a financial interview showing what savings we had, how much of a deposit we could put down etc. And we have just considered another SO property with A2 Housing, and they did the same thing.

To the OP, they are obviously not all the same, so I wouldn't blow it out of the water until you have spoken to all of the HA operating in your area. If you have significant savings, can't we get in touch with a good mortgage broker and see what they can do for you?

manhattan

Yes not all schemes are the same there is right to buy, shared ownership, social homebuy, open market homebuy, new build homebuy, right to aquire, key worker living etc.

Even though in IMO house prices are overvalued, we have put in to buy our house under the "social homebuy" scheme.
The house is in the best area in our city, enough land to build two 3 bed houses in the future, and we dont wish to move from here.

We are only purchasing 25% while prices are high and so that we can start personalising the house and will purchase the remaining 75% when we think prices are at a sensible value. There is also a 16k discount on this scheme.
My wife is also a key worker so i am sure there is a key worker mortgage scheme that will give you a mortgage for 1% interest for two years.

gabyjane

Hi we signed our papers for one yesterday and i'm soo excited. Basically we will buy 40% and rent the other 60% in 6 years we could be paying off the whole amount which seems ages but not too bad but i hope to come into some money by then. Ours is worth £153k and we could never afford a house anywhere near that and we are both on good money, we are though not in this for the money, we really just want a secure home to live in and this is our way of doing it, if we don't buy the rest we will still have a nice secure home which we will have cheap rent to pay for..can't wait till it's finsihed being built!!
Good luck to the op with whatever you do.

united4ever

Our Motive for doing SO was mainly to have somewhere nice to live with the potential to build up some capital over the next few years. If we were able to buy 100% anywhere it would have been a place which we hated in a bad area, so at least this way we can get somewhere semi - nice. Also the rent we are paying seems to be below market value. But I agree, if you can buy somewhere for 100% where you will be happy to live this is the best way.

mazcambs

Do you have to be a key worker to be able to apply for part owned homes?
Me and my partner just cant get a mortgage £75,000 at most.

Bargain_Rzl

Hi mazcambs. No, you don't. Some schemes (and indeed some individual properties within schemes) are limited to keyworkers because of the way they are funded, but there are still many options for those in other professions.

Look at www.housingoptions.co.uk - it's based in London but has quite comprehensive information about the sort of schemes which are out there. Obviously outside of London prices tend to be lower.

Also do a search on this forum for previous threads about shared ownership - there have been many discussions about the pros and cons of different types of scheme, so there's lots of information to be found if you look for it.