Shared Ownership

BenF

Hi, I didn't know if anybody could give us some help on shared ownership?

We can't quite afford to buy a house at the full price, mainly due to living in Berkshire with outrageously overpriced houses.

I've been looking at shared ownership, where it seems to cost around £90,000-100,000 for a 40% share and then paying rent/service on the rest, which from initial estimations I think will be affordable.

I've researched a lot on the pro's and con's of this scheme, but could anybody give me a quick up to date summary and maybe any alternative options? I'm at a bit of a lost cause at the moment.


The other idea I had was buying more of a run down house and then doing it up, but I'm not sure where to look without going to an auction!

kayfaz

Is it the deposit that you're struggling with or the mortgage payments?

AMILLIONDOLLARS

My personal thoughts are to buy a run down house to fix up! Has anyone explained the exit fees to sell your share? You have to pay a percentage to Housing Association for them to market it, plus you will have to pay their solicitors fees, there is something call a management package which you will need to request from the management company the fee for this could be anything between £150-£500. Do your research how easy is to to get out, are well as in. Plus research how good are the Managing Agents. Another consideration, you will be paying maintenance costs as if you own the whole thing.

Lots to consider!

Good luck

AMD

AMILLIONDOLLARS

Technically every house that we buy is "run-down", why? Because we all want to rip it to pieces and put our own stamp on it!

So there is no straight answer to your question. Besides houses that need fixing up, nearly always end up in the hands of a property developer!

Be reasonable in your expectations and the areas where you wish to live, instead of a 3bed property consider a 2bed, it's called a property ladder for a reason. Be proactive and friendly with the Estate Agents, if they see you are serious you might get first bite at anything worth buying. Look past the mess and decor of any home you are viewing its the size of the rooms you are buying.

Good luck!
AMD

Pixie5740

BenF wrote: »

I'm guessing through an auction but I didn't know if there was any other ways through websites etc. that I was unaware of? Also, without sounding stupid, how would buying a run down house and doing it up work in regards to a mortgage?

There aren't any secret websites or catalogues used by would-be property developers. You find rundown properties through the usual channels, auctions, RightMove, Zoopla, etc.


It depends how rundown the property is as to whether or not you can get a mortgage for that property. For example, not having a functioning kitchen would make some properties un-mortgageable (is that even a word?)


You should speak with a mortgage broker to work out your budget and also find out what would disqualify a property from having a mortgage secured against it.