shared ownership now or wait (an extra long time)!

kingstreet

I suspect the newbuild premium was the original reason.

As times change in the housing market you will see the max LTV for newbuild houses and flats altered as the perceived risk changes.

You also see a difference for newbuild flats depending on the intended use. From 85% and even 90% for a flat for residential purposes, it can be as low as 65% for a newbuild flat for BTL.

One lender lends 85% on a newbuild flat for residential, but wont lend on a newbuild flat for BTL at all.

csgohan4

New builds are almost always overpriced and drop in value once you step through the door. Exceptions will of course be London

NOVAMET21

I can only speak on my experience and on shared ownership properties. I believe the shared ownership property are valued less than the properties sold by the building companies as they can price the house depending on how much profit they want to make.


Both of my properties has been new build and both prices has increased. When I sold my 1st house, the estate agents priced it at £180,000 but the chartered valuation surveyor valued my house at £170,000 which is 5.88% less than the estate agents. The full value of the house was £154,000 and I owned 50%. The house price went up by £16,000 in 2 years.


The second property I bought after selling the first one was priced at £305,000 end of 2014. The house value on Jun 2016 was £420,000. The increase is £115,000 in less than 2 years.


Last time I saw 2 bed house new build in Trumpington, Cambridge was valued at £499,995 but this was sold by the builder so non-shared ownership property. There are only flats available right at the moment and they are going for £440,000.


Crazy prices but it will depend on different things like the location and how much the builder has over priced your properties as its them who can charge anything but with shared ownership you can't charge the customer whatever you like.

getmore4less

House valuation has gone up by almost £20k (now £182k) since initial valuation (even though its a new build this is allot for the area which average at £140-150 for a 3 bed).
*We would be using ALL our savings...nothing left for carpets etc

You could well fall into the shared ownership trap.

The key is the exit plan unless it is a long term stratagy.

Shared purchases exits need a injection of cash or increases in borrowing(income) to get out.

The higher LTV lending means the prices are premium and the second hand buyers will be thiner on the ground if/when you need/want to move


Would seem you could be sitting on a 25%-30% premium.


anyway the pros may be worth the risks if you will be happy in the place for a number of years and can afford it.

A very good shed can solve a lot of storage problems.

missyp123

Thank you all so so so much for your input every single one of you have really helped us in our decision.

We have decided to stay put in our rental and continue to save for another 6 months to 1 year.

The main reason being that we would be moving with no savings and we really dont want to fall into a trap of needing cards etc to survive. (been there done that...never going back).

The good thing is if we do this right we could get a full onwership.

My son will be full time at september so i plan to get a part time job once he is settled in and this will be 100% going into the savings too :money:and my parents are gifting some money when they release some investments next year too:j

Once again ty all :beer: