Shared Ownership scheme

fishix375

Hi, has anyone heard of have experience using the 'Your Home' scheme?(Please google it's a .org.uk site but I can't post the link!) They offer a Shared Ownership scheme with shares as low as 10% and on the open market. I'm very interested as we're looking to get on the housing ladder as soon as possible, Just weary that it might be good to be true!
Any help and advice would be greatly appreciated!

csgohan4

SO exposes you to the same costs as a full home owner for leasehold. Hence service charges and maintenance fees that HA notoriously ask for.


We're not talking about a cracked bathroom tile but re reroofing, exterior painting and replacing windows/lifts.


These costs are shared amongst the leasholders and come in the thousands if not tens of thousands.


So whether you own 50% or 100% you will pay your share as a full home owner, so no discount.


Not to mention you can't cry to a landlord if you need a new boiler or new cooker, because you have to sort it out yourself.


There is more to it than the typical ' It's cheaper than renting' rubbish. Don't forget the insurance policies you need to take out and all maintenance you need to carry out for the flat/house.


You may find it will be difficult to stair case up to 100% given the rate of house price increases could be above your rate of wages every year.


Also when you come to sell, the people to sell to will be a lot limited than if you owned a regular non SO house.

Summary here:
https://www.cml.org.uk/news/news-and-v/626/


Plenty of threads on SI and why it is a scam:


https://forums.moneysavingexpert.com/discussion/5416679




https://forums.moneysavingexpert.com/discussion/5416679


finally document from the council of mortgage lenders:


https://www.cml.org.uk/documents/cml-shared-ownership-fact-sheet/cml-shared-ownership-fact-sheet.-infographics-included.pdf

NOVAMET21

I wouldn't call myself expert but I do know few things about SO properties as I sold one and I'm living in one.
People will say it is a scam but it depends if you have a good plan. In my circumstances, at the moment I can only buy SO properties as I cannot afford non-SO properties in my area where 2 bed house cost £400k +.


I don't think I will be able to by 100% in the future but I got a good plan. Obviously, buying in different location where it is cheaper will be an option in the near future. I can only tell you based on my experience. SO properties are getting more and more popular where the house prices are unaffordable and more lenders are lending money for SO properties compared to 4 years ago when I bought my first one.


Few concerns that I have read on this forum:


1. Is it a scam?
- People have options how they live whether its renting, sharing house or buying. In terms of buying, there are open market houses, schemes like help to buy and SO. Do I think SO is the best option to get into property ladder? Obviously not but do I think SO is a scam. NO, obviously not as I know that without this scheme I wouldn't have £40,000 as an asset in just 4 years. I have my own privacy and I don't have to worry about if the landlord will kick me out.


2. Is it hard to sell the SO properties?
- Yes, it is harder to sell than open market house as this is just common sense. The process of selling is HA will advertise the property in their website and look for an approved buyer. If HA doesn't manage to find a buyer within 8 weeks then the house can be marketed as normal in open market. The buyer can buy your exact share or higher up to 100%. Based on my experience, HA found a buyer for my first SO property within 3 weeks. My next door neighbour who just sold their SO property found their buyer within 2 weeks. So, selling your SO properties depends on where you live in terms of finding the buyer quickly. People who had bad experience in terms of selling their SO properties may have lived where the prices are not pricey. I mean if I lived somewhere where the house prices are about £200k then I would buy a non-shared ownership property. So location is important as the house prices depends on it.


3. Maintenance cost
- Yes, you will be responsible for any maintenance that needs in your house whether that is the faulty boiler or broken windows. This is normal anyway if you are a home buyer. SO properties do have rent and service charge but this cost are discounted.


If you can buy a fully mortgage house then avoid SO property at all cost but if you can't afford the fully mortgage house and wants to buy your own home rather than renting or sharing then SO is the way to go. There are lots of horror stories about SO scheme but they never release the good stories. Well, I don't see SO scheme as scam or horror. I'm actually happy that I bought one as it is a good investment like I said £40,000 in 4 years and it has provided us privacy, security and somewhere to call it our home. I say if you got a plan before entering to the SO scheme then go for it as I have a plan so that one day I could buy fully mortgage house. SO scheme will be the reason for this and I will be thankful. There is no way I could save £100,000 in 10 years so maybe that would be my deposit for my future home.

NOVAMET21

I have never heard of 10% share though. I thought it started from 25% to 75% initially.