Opinions on shared ownership

Prohorenkovs

Hi everyone,

New poster! Desperately seeking some people's opinions on shared ownership. I am in a position where I can purchase 40% of a property via shared ownership (not shared equity).

I saw the thread on the front page about shared ownership, but didn't want to derail it or take it over with something different.

Has anyone here entered into shared ownership? What are your opinions? Also to anyone who hasn't entered into shared ownership but has an opinion on it anyway.

Does it hinder you when it comes to buying a house in full on the open market (in terms of finances etc.)?

Is it easy to staircase (again, in terms of finances - how hard is it to get to 100%)?

Just some of the questions floating around at the minute.

dc197

I have no direct experience. An acquaintance told me that the buying and owning is straight forward, but that when you come to sell there is an extra hurdle. You must first offer it to the housing association (or whoever) to get first refusal for the purchase of your share, and only if they do not want it can you then sell on the open market. This may mean that they have control over the price too if they want it, but that's just my conjecture.

alfiehoney85

Hello

in 2007 i bought a shared ownership house at 50 % (the percentage share it was offered for) a re sale.
Me and any partner split up and this was then bought out in full by my partner direct from the housing association. Took a while but it went through fine.

Fast forward to now and i am back in the same field - purchasing a shared ownership again.
My process.......February - sign up with local government housing association to get on their "bidding list" and to be nominated.
February - house for resale 65%, start to apply and quickly come to realise this house can only ever be staircased to 80% due to a rural village clause. This hindered our mortgage drastically and had to obtain a 10% minimum deposit (we only had 5%)
That option we then avoided.

March 11th we have a viewing on a New build shared ownership. March 14th we reserve for £500.
This time with a new build, they give you affordability assesment and they tell you how much of a share you purchase.
Success, we start the proceedings.

we are very close now to exchange. BONUS.

We have opportunity to purchase the additional shares to 100%, (just remember everytime you apply there will be solicitor fees) so ideal to try and keep it to maximum % and minimal legal fees. They cannot refuse you to purhase addiitonal shares (only lenders can based on affordability)

Once we own at 100% we can sell to whom we want on open market.

If you want to sell, then you have to sell back to HA to offer them first refusal. we can both instruct independant valuers to make it fair. In turn, they also get a share of the equity also so goes in favour for both.

Good luck

wymondham

alfiehoney85 wrote: »

Hello
Once we own at 100% we can sell to whom we want on open market.

If you want to sell, then you have to sell back to HA to offer them first refusal. we can both instruct independant valuers to make it fair. In turn, they also get a share of the equity also so goes in favour for both.

Just to clarify as I have no idea, if you sell then the HA get 50% of the equity from the sale?