First Time Buyer Advice Appreciated

CookieM

It doesn't seem right that you won't have to pay rent on the remaining share. Do the listings for these properties explicitly say no rent or are you assuming because there's no rent figures? Also are these houses or flats?

gohan2091

I have already provided links to some properties I have looked at. These are homes not flats and it says on the ad no rent on the remaining 25%.

This one is no longer suitable for me as the £110,000 is the 75% share and I am only looking at properties under £125,000 but it says there no rent.

This one has a 5 pence a month rent so basically no rent.

I heard you need life insurance to get a mortgage, is this true? As I have no dependants, I am single and don't think I would need it so is this a requirement?

CookieM

Fair enough! Never expected there to be any with no rent to pay. Why are there none of these in my area? lol

ap1985

http://www.familymosaicsales.co.uk/media-centre/latest-news/information-about-insurance-for-shared-ownership-properties/

gohan2091

Yes it seems no life insurance is needed

csgohan4

gohan2091 wrote: »

Yes it seems no life insurance is needed

If you have no dependants, then you may not need life insurance, but your lender may require one

gohan2091

After speaking to London & Country, it doesn't seem that I will be able to borrow enough money to get a large enough mortgage unless I find a shared ownership property that is 25% or 50%. I can afford the monthly repayments plus all the bills and costs I will have per month but if I can't get past the first step of borrowing the money, I can't pursue this. My goal now is to get a 2nd job and keep saving.

ap1985

gohan2091 wrote: »

After speaking to London & Country, it doesn't seem that I will be able to borrow enough money to get a large enough mortgage unless I find a shared ownership property that is 25% or 50%. I can afford the monthly repayments plus all the bills and costs I will have per month but if I can't get past the first step of borrowing the money, I can't pursue this. My goal now is to get a 2nd job and keep saving.

That's good at least you have clarity now and you know what you have to do!

Kynthia

ap1985 wrote: »

Not forget the Insurances, i.e. life insurance, building and contents insurance...it's one thing after another...Also if you buy a flat you have to think about maintenance costs, ground rent so on!

My post included contents insurance and if the OP buys a leasehold property the buildings insurance and structural maintenance will be in the service charges mentioned. The difficulty for most is knowing what the service charges will be to budget for them as they can increase without warning, especially if there isn't a sinking fund. I doubt the OP has any need for life insurance as they don't appear to have anyone dependent on their income and very few, if any, mortgages require it.

OP, it sounds like you are very good at not wasting the money you have. You'll be building a fantastic deposit and savings for when you do come to buy.

tlc678910

Hi OP,
You sound extremely determined and I think if anyone can do this on a limited income it is you - after all you have already saved all that deposit.

Keep saving and keep looking for that shared ownership property. You could try getting in touch with your local shared ownership agents to see if it is possible to register your interest with them and discuss your needs.

Shared ownership has drawbacks for some people with more difficult resale and perhaps less gain when house prices rise but that is compared to buying on the open market. For you it seems that the realistic alternative is renting and shared ownership will give you more security than renting where a landlord can serve you notice for no reason.

If you need to move out in the short term a room in a shared house is probably your best bet until you find what you are looking for.

Good luck
Tlc