How hard is it to get a shared ownership property!?

kimbyanne

We have applied for a shared ownership house, we would be putting down around £90k (60%). The person from the HA we have been dealing with made it all seem so easy and straight forward but it is anything but!

The amount of hoops we have to jump through plus the ridiculous amount of paperwork they want and forms to fill in...

Has anyone here experience of obtaining a shared ownership property? Was it this complicated?! Also we were told we were the only ones who had shown interest, turns out so have another 30 people, so we could have spent all this time and not even get short listed!

kingstreet

As this is Government funded, you first have to apply to the local HCA HTB Agent for your area. There is a calculator which is used to establish what share is affordable to ensure;-

you an afford it

you don't purchase too large, or too small a share.

Mortgage brokers experienced in dealing with HTB Agents, HAs and shared ownership can usually progress things in a more timely manner, as as result of experience and know-how.

Lily-Rose_3

If it were me, I would run from shared ownership, as fast as my legs would carry me, in the opposite direction! Lots of hassle, you responsible for all the repairs and maintenance, the property NEVER belonging fully to you, the association who own the other part of the property can put the rent up and up, over and above the rent of inflation, and there's little you can do about it. In addition, it's almost impossible to sell, and it costs a LOT more than just renting outright, or just buying outright.

If you can do, get out now, I would. Either carry on renting, or buy, but steer clear of shared ownership. If the mortgage lender knows you can afford the mortgage for 60%, PLUS rent for the other 40%, then they should know that you can almost certainly afford the full mortgage.

kimbyanne

Thanks both.

We have already registered with the HTB Agent and registered on the Housing List with the council. We have also appointed a IFA with experience in Shared Ownership as well as contacted a Solicitor with experienced in Shared Ownership.

We are pretty much set to go BUT we are just waiting to see if we even get shortlisted. One thing they don't make clear is all this time and effort could be for nothing if you don't get past their ridiculous criteria. When we first looked at SO we knew it wouldn't be a case of liking one and being given the keys but it seems that you have to jump through so many hoops to even get shortlisted. It seems you are treated and expected to follow the same application rules as if it was a normal HA property - application, bidding, shortlisting, etc.

You have to be ready to go if they offer you the house as they want completion within 28 days so we have had to get everything organised and ready to go at a seconds notice.

Re not going for SO, we have looked into it and it seems to suit us although there is a lot of negativity around it. We are a little wary about the HA being able to ramp up the rent as they please. I think, if we don't get offered this house, chances are we won't have any luck with the next batch they have (end of this year) so we would look at using help to buy with the 5% deposit, 20% government loan instead. This house just happens to be in the area we want. If go for somewhere else, we would have to move further than we wanted (next new build development being about 4 miles away)

Running_Horse

Probably a lot easier to buy one than to sell it again in a few years.

I would only consider it if in an abnormally expensive area like London or Cambridge, and only if it was genuinely a forever family home in a fantastic area, preferably if easy to increase percentage owned.

jonas123

Lily-Rose wrote: »

If it were me, I would run from shared ownership, as fast as my legs would carry me, in the opposite direction! Lots of hassle, you responsible for all the repairs and maintenance, the property NEVER belonging fully to you, the association who own the other part of the property can put the rent up and up, over and above the rent of inflation, and there's little you can do about it. In addition, it's almost impossible to sell, and it costs a LOT more than just renting outright, or just buying outright.

If you can do, get out now, I would. Either carry on renting, or buy, but steer clear of shared ownership. If the mortgage lender knows you can afford the mortgage for 60%, PLUS rent for the other 40%, then they should know that you can almost certainly afford the full mortgage.

Just to add some balancing to this comment, based on my real life experience, fyi I bought a SO property in London:

1. Yes you are responsible for maintenance and repairs for the internals of your property and you pay a service charge like any other flat that covers repairs to communal areas.
2. Yes the rent goes up, as you would expect. However it is clearly stated in the lease by exactly how much it goes up (mine was RPI+2% I believe, so not exactly crippling)
3. I would argue that in popular areas of the country, these properties are in demand so shouldn't be hard to sell
4. I very much dispute the claim that it costs far more than renting or buying outright. Renting on my street for an identical property is around £2000pcm. In total, I had a 50% share and was paying £350 on rent and £800 on mortgage = £1150 or a saving of £850 a month...plus I was also building up equity rather than flushing away the rent. I've subsequently staircased to 100% and fully own the property and now pay close to £1900 a month in mortgage costs, so again, SO was cheaper.

To be fair, my property was slightly different as it was a resale, with the property built around 15 years ago. The terms on the lease are less restrictive than ones you find on the new new builds.