Is shared ownership a good idea?

Running_Horse

I keep coming across this scheme randomly on some properties in local searches. They usually have two listings on RM; one at reduced price, one at normal. I have no idea which types of properties qualify.

http://www.rightmove.co.uk/property-for-sale/property-44885084.html?backListLink=%2Fproperty-for-sale%2Fmap.html%3FlocationIdentifier%3DREGION%255E1428%26insId%3D2%23_includeSSTC%3Don%26auction%3Dfalse%26locationIdentifier%3DREGION%255E1428%26previousSearchLocation%3DWest%2520Malling%26radius%3D0.0%26searchLocation%3DWest%2520Malling%26searchType%3DSALE%26useLocationIdentifier%3Dfalse%26box%3D0.39217%2C0.42088%2C51.28995%2C51.29913%26popupPropertyId%3D44885084&fromMap=true

I am not in a position to say whether it is a good thing or not. I usually move onto the next property rather than read the details.

http://www.homewise.co.uk/

Some more information here.

postitbue

Just in case anyone has sold their flat to a buyer who is using the home wise scheme - DON'T DO IT. I cannot speak for their home equity release side of the business, but I will share my experience to give you an idea of how this 'business' works and in my opinion, what bunch of liars this lot are.

I was offered a great price for my flat in June - was put under quite a lot of pressure by the pushy negotiator who insisted that they could close the sale and complete in 6 weeks, as this was a cash purchase with no chain.

'Great' I thought - hassle free chain free fast sale, just what I wanted.

LIE 1.......

After wondering when the surveys etc would take place and after a but of badgering a month later as to why we hadn't heard anything, it turns out that the 'cash sale' is in fact being funded by the sale of buyers property. I don't know which planet that constitutes a cash sale!

Now, I think I should have walked away at this point as I've clearly been mislead, but at the same time, the high offer was still very appealing, and was higher than I was likely to get from another buyer, so decided to hang in there, albeit with a question mark on the morals of Homewise to blatantly lie in writing about the cash sale/ chain situation.

LIE 2
We get to august - past the 6 week completion date, and I find out no legals have been issued yet. Cue panic, moany phone calls etc. Finally come September all legals completed bar a few nitpicky bits which seemed to be raised purely for the purpose of holding things up. What part of this is in line with the 6 week completion date?

Lie 3
Finally lose my rag in October, as after being told for 3 weeks that we would be ready to exchange 'next week' we find out NOT from homewise, but from the agent down the chain - i.e. people buying homewise customers property that he is no longer continuing with the sale of his property, nor the purchase of mine. So looks like they had no intention of bothering to tell us that the sale had fallen through.

So in conclusion, what started in June and should have been done and dusted by late august latest has been dragged on and on, and eventually ended in a chain collapse for 5 people.

Don't risk selling your property to anyone using homewise, they will lie to your face to get your property and then cease communication as soon as an issue arises.

Doesn't say much for how they do business, and is not a surprise that they are not selling a registered product via their 'Equity release' wing.

Scam artists through and through, don't waste your time on these clowns.

[Deleted User]

The above post needs a thread of its own.

Running_Horse

Thanks for sharing that. Any Rightmove search in my area brings up their results for the first page or two, and is a bit of a pain. Although I wouldn't rule out buying a better house this way one day, like most I want to pass something down to my children so would just downsize to a small and modern flat, and give a deposit to the kids.

SailorSam

I'm a few years younger than you Op but in a similar position that i'm here alone. My house is a bigger than average 3bed semi with a large garden, and i've looked at flats that i could downsize to, if at some time in the future i may not be able to manage here. I know there's one just up the road from me that must have been on the market for 3yrs or more. That like so many others is one of these part ownership things, and while i've never gone into detail of the pros & cons, it's not something i like the idea of.
Thanks to the previous posters who have said the things i should look into if i were ever to go that way.

Cautious_Optimist

OP:
Have you considered putting all your 185k into a private pension and renting, instead of buying?
Just curious, as you say you have no relatives to pass the property on to..?

whitejohn

Cautious_Optimist wrote: »

OP:
Have you considered putting all your 185k into a private pension and renting, instead of buying?
Just curious, as you say you have no relatives to pass the property on to..?

No, never thought about that, how would that work if I'm retired, you mean buy an annuity or something like that?

Cautious_Optimist

whitejohn wrote: »

No, never thought about that, how would that work if I'm retired, you mean buy an annuity or something like that?

Sorry did I misunderstand your previous post?
I thought you were already planning to put 85k into a pension (and spend 100k on a flat)?

Yes, I mean buy an annuity with your 185k.
I know rates aren't good at the moment, but it would mean a larger monthly income to spend, for the rest of your life.

You'd have to pay rent, obviously, but at least maintenance issues wouldn't be your problem.

It would also give you the option of retiring overseas and renting a cheaper property.

Some cheaper countries are good to rent in, but potentially risky to buy in.

Also if you buy a property now, there's always the risk the council may sell it if you need to go into a care home later on...

whitejohn

Cautious_Optimist wrote: »

Sorry did I misunderstand your previous post?
I thought you were already planning to put 85k into a pension (and spend 100k on a flat)?

Yes, I mean buy an annuity with your 185k.
I know rates aren't good at the moment, but it would mean a larger monthly income to spend, for the rest of your life.

You'd have to pay rent, obviously, but at least maintenance issues wouldn't be your problem.

It would also give you the option of retiring overseas and renting a cheaper property.

Some cheaper countries are good to rent in, but potentially risky to buy in.

Also if you buy a property now, there's always the risk the council may sell it if you need to go into a care home later on...

Still have the 185k, probably said I would buy a flat for 100k and the 85k left over would be my pension. I will look in to that as I did wonder what would happen if I had to go in to a care home at some point. As you say, the rates are very poor but maybe if I wait and see what happens next year with the pension changes?

Cautious_Optimist

whitejohn wrote: »

Still have the 185k, probably said I would buy a flat for 100k and the 85k left over would be my pension. I will look in to that as I did wonder what would happen if I had to go in to a care home at some point. As you say, the rates are very poor but maybe if I wait and see what happens next year with the pension changes?

Do you already have a private or occupational pension?
If you only have state pension, I'm not sure if the pension changes will make any difference to you.

The annuity rates are low, due to interest rates being low and I wouldn't expect that to change any time soon.

I would seek further advice before doing anything else.
Try MAS, Age Concern, CAB, then take it from there.
Are you in good health?
If retiring overseas, make sure you get a good estimate of health insurance costs.