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Shared ownership
Comments
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We've been in our SO house for nearly 8 years now. The sale took a long time (about 4 months with no chain) as the HA / their solicitor seem to take so long to respond to each request, but maybe that was was partly my solicitors fault too. Who knows? We bought an older house and my experience of new build houses was that the rental portion was higher than my older type house.
Only way we could get on the housing ladder and hubby would love to move, but I am happy here. We are now considering doing up the house (converting garage / kitchen / bathroom) and have to fund it ourselves, but I understand that if we staircase / HA will take value before 'our' improvements.
My mortgage is about £460 a month, and rental was £115 per month 8 years ago, whilst it is now £160. We bought a 50% share, so £75K of a £150K house.0 -
If you can afford a non-shared ownership property then you should almost certainly not buy a SO one. They have more fees, you don't gain all of the equity, you are usually prevented from letting the place, it takes ages to sell and involves a lot more fees, etc. Often they are new builds that then drop in price which adds to people's disappointment when selling but resales avoid this issue.
So you would usually only buy SO when your other option is renting and you'd rather have a secure home that you can decorate and potentially gain some equity on. Only you know whether you can afford to purchase somewhere else.Don't listen to me, I'm no expert!0 -
You'll want to get that confirmed because in every case I have seen it's the other way around. If you want to buy an extra 50% you have to pay 50% of the current market value, it doesn't matter what improvements you've made.We are now considering doing up the house (converting garage / kitchen / bathroom) and have to fund it ourselves, but I understand that if we staircase / HA will take value before 'our' improvements.Changing the world, one sarcastic comment at a time.0 -
i can confirm that the improvements we did meant that we got a reduction on the 2nd half....0
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On my shared ownership house, if you did any improvements, these were not taken in to account when the value was determined if you were staircasing. However, if you were selling the property, they were taken into account and so the housing association for their percentage at the value including your improvements meaning you could lose money. Therefore if I had done improvements, I would have only done so if I knew I was staircasing to 100% and buying the freehold.
There were no more fees in selling my s/o house than with any other, if the HA nominated a buyer they collected 1% of the sale, if they couldn't (which they didn't) you pay the EA fees as normal, which for me was actually less than 1% as I got a good deal with an EA. I had no problems selling mine on, as soon as it was listed with an EA I remember having about 20 viewings in 2 weeks and about 12 of those viewers applied for the house. Guess it depends on the area and the house though. The only additional fee because it was shared ownership was having a RICS valuation and that cost about £150ish.0 -
What happens if you staircase to 100% on freehold and you decide to change to BTL mortgage and rent the property then go buy elsewhere?
Would you still need to get consent from HA?0 -
Thnaks for your views. More thought required I feel. not an easy decision0
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Can you do this scheme if you have cash, and dont need a mortgage? and could pay the rent. We have 75% in cash. We are 67 and 59. We cannot get any sort of reasonable mortgage. (we have tried!!) We can afford rent with a sizable deposit. Or do you HAVE to have a mortgage?0
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Can you do this scheme if you have cash, and dont need a mortgage? and could pay the rent. We have 75% in cash. We are 67 and 59. We cannot get any sort of reasonable mortgage. (we have tried!!) We can afford rent with a sizable deposit. Or do you HAVE to have a mortgage?
If it's a resale, not a new-build, then it shouldn't matter where the money comes from. If it's a new scheme, there may be rules, but it's easy enough to call up and ask.Mortgage - £[STRIKE]68,000 may 2014[/STRIKE] 45,680.0 -
the rules are that you can have if you cant buy on the open marketDon't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.0
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