Private shared ownership schemes

Chemical_Grrl

Hi all

I just wondered if anyone has any experience of private shared ownership? Is it a big no no or can it be a way of getting on the property ladder? Any advice would be appreciated, thanks

marksoton

See that bargepole over there.. your one. I wouldn't touch it with it....

davidmcn

Any particular schemes? "Normal" schemes only work because there's an agreement between the housing association and your lender about what happens if either of them wants to repossess.

AdrianC

Shared with who?

Your mum?
Some random investor looking to make a few quid?
A company offering a scheme across a range of properties nationally?

If this is that "unmortgage" guff, then...

kingstreet

Mortgage lenders only entertain shared ownership because the shared owner is a registered social landlord where they can check the lease and where a mortgage protection clause permits the lender to purchase the remainder of the property where the borrower falls into arrears on the mortgage.

You cannot buy and sell bits of houses with other private individuals if you need a mortgage.

eddddy

I've occasionally heard of schemes which property owners (and 'agents') "dream up" like:

You buy 10% of the property in year 1 - and pay 90% rent
You buy another 10% in year 2 - and then pay 80% rent
You buy another 10% in year 3 - and then pay 70% rent
etc

Typically, they are a very bad deal/bad risk for the buyer - but that's normally because the people running the schemes are dodgy rogues.

If it's anything like that, unless you have a very good understanding of property law and risk (or you can afford to pay a good property lawyer), it might be best to avoid.

lewishardwick

It sounds as appealing as “Modern Method of Auction” sales.

Avoid like the plague!

Chemical_Grrl

Hi thanks for your replies, this is one scheme available:


https://www.jointequity.co.uk/

Chemical_Grrl

and this is another one - http://heylohousing.com/your-heylo-housing

marksoton

"In our example above, with a purchase price of £150,000, your 50% share will have cost £75,000. If you paid the minimum deposit of 5%, i.e. £7,500, this would leave you requiring a mortgage of £67,500."

And you'd want to purchase property with these people!?;)