Does it Make Sense to Move - Shared Ownership

Firstly I have noticed loads of people seem against Shared Ownership so I totally understand this will get some rather negative opinions. Which I will gladly take on board but would also love to know what others think on my current situation..

My Partner and I Currently rent a housing association property - A 2 Bedroom Groundfloor Flat with No Garden. We recently had an email to let us know that some Shared Ownership properties had become available / completed and were asked to pass their affordability assessment if we were interested.

They got back saying all seemed OK and suggested a 25% share :o

The Property is a nice end of terrace 3 Bedroom House - With the Rent, Mortgage, Estimated Bills, Extra Council Tax it looks to be around £60 more than what we are paying to rent this place. (based on a 2 year fixed mortgage - I understand this will go up afterwards and a rent increase is possible)

So it's almost as if we are paying the extra Just for the extra room , driveway and garden! So kind of seems a no brainer to us..

Now my father in law who owns a property suggests declining because of the EU situation and wait to see what happens with that. He is not keen on SO and thinks it's a risk / there is no real investment. My father who is not a property owner suggests going for it as it seems a good opportunity to finally move to a larger home without the fear of being kicked out if we had then ended up renting privately to get the extra room.

I know this is not really "buying" a house or a major investment but to us it kind of makes sense for the purpose of getting ourselves a property we would love and have no intention of moving and if house prices do drop possibly buy some more shares when they are cheap :rotfl:

So can anyone see my point? or am I being over excited and crazy! Any advice or opinions would be cool or if you think I may be over looking / missing something! Thanks in advance.
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Replies

  • [Deleted User][Deleted User]
    0 Posts
    Part of the Furniture 1,000 Posts Name Dropper
    MoneySaving Newbie
    Shared ownership can be an option if you can't buy a fully owned property.

    However, bear in mind that as well as rent there will be a monthly service charge to pay normally. The mortgage, rent and service charge often add up to a lot more than you'd pay if just renting or buying a whole property.

    You will also need enough money to cover legal fees, possibly a survey and of course, the deposit.

    Also they can be quite expensive in terms of price.

    They can be awkward to sell, depending on area and the HA who owns it.

    But if your present place is too small, and you need the extra space, with no other options.., it can be worth it.
  • KynthiaKynthia Forumite
    5.6K Posts
    Part of the Furniture 1,000 Posts Combo Breaker
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    As above, SO is good for some people. If you cant afford to buy and really want a secure home you can make your own, have no intention of moving for a long time and can afford rent increases, interest rate increases, and property repairs then it's good. If you're thinking of ever letting it, selling or moving away soon, can only just afford your rent now, could buy a whole property elsewhere or you're thinking of it as an investment then it's not for you.
    Don't listen to me, I'm no expert!
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