Shared Ownership - Likelyhood

colcheslad

Evening all, hope you are all well,

I'm looking at a Shared Ownership property in London on Saturday, I'm really interested but feel my eligibility may let me down. The financials aren't a problem, but this development has only 4 suitable flats on offer. I only work in London rather than live / work in the borough.

Anyone have experience of this and whether I have a chance? Can't stop thinking about it!

Many thanks in advance

Elfbert

My first SO flat I lived in Brighton, worked in H&F and bought in Ealing.... second one I now live in Ealing (obviously!) and am buying in Brent. (The guy I'm buying from lived in Tower Hamlets when he bought new build in Brent).

So you never know. It will come down to whether other applicants have higher priority than you, and there's no way to know that! 8 people viewed the flat I'm now buying, and I still got it, despite being out-of-borough.

Best of luck.

colcheslad

Elfbert wrote: »

My first SO flat I lived in Brighton, worked in H&F and bought in Ealing.... second one I now live in Ealing (obviously!) and am buying in Brent. (The guy I'm buying from lived in Tower Hamlets when he bought new build in Brent).

So you never know. It will come down to whether other applicants have higher priority than you, and there's no way to know that! 8 people viewed the flat I'm now buying, and I still got it, despite being out-of-borough.

Best of luck.

Reassuring, thanks Elfbert! I've had a rough couple of years so it would be awesome to actually have a stable home, thanks again!

colcheslad

Hi everyone,

I was accepted onto the Shared Ownership scheme in the end after somebody dropped out so I was next 'on the list'. However, I have now been researching the subject and it looks like there are lots of differing opinions!

I would be paying £1k per month for mortgage, rent + service charge, with my deposit being £8k on a 25% share (share value would be £80k). I have been told solicitors fees, mortagage fees etc would be £3.5k to £4k, this along with the deposit would swallow up every penny of my £12k savings.

This is a new build 1 bed flat, which actually is still under construction, estimated to be completed in April.

I'm having doubts as to whether this would actually be a good idea now, I haven't parted with the holding fee etc yet and am due to have an appointment with mortgage advisers on Tuesday.

Anyone with more experience of the process (I have 0!) who could offer any insight into this?

Many thanks in advance!

Elfbert

Honestly, it's really hard to tell - just like it is when you buy any property. Will it go up in value? Will anyone want to buy it when you want to sell? Is it a good area (generally, and for your lives)? What's the alternative, and how much will that cost?

As with owning any property, it's a good idea to have enough money to cover any repairs which might be needed, and not get into debt.

Personally, I've had a great experience, and I think it is a better scheme if you're in an area where a lot of people want to buy - which is true for most of London, but not necessarily all. But obviously other people have not been so lucky.

colcheslad

Thanks again for your insight it really is appreciated!

Currently I rent in Colchester for £550/month and commute into Liverpool St each day (season ticket costs £4.5k a year).

The flat in question is in Leyton Midland Road and seems a fair rpice £320k) for other 1 beds in the area. It would give me an extra 2 hrs a day.

I'm single and it's looking likely to remain so, so significant others and kids aren't a concern right now.

Any further thoughts?

Elfbert

I think you really need to do the maths and make a list of pros and cons!

So, you'll save the 4.5k commuting, but how much will it cost to get to work now? Will you have to pay to get to places you need to go in addition to work - family/friends/hobbies? How long, realistically, will you save on your journey to work? Are you stable in your job, and do you think this is a long term purchase, or might you want to move on? Will you want to try to buy 100% of the flat in the future, or are you happy with just owning a share until you move? Are you moving to that area for a reason, or did you just see this property and think you could afford it? What have house prices in that area done recently, and is there anything likely to locally influence them in the future (investment in the area etc.)? As it's a new build, are you prepared for it to stay static in value for a bit before (hopefully) climbing, and what will you do if it doesn't rise?

On a the money side, after the mort/rent/sc, how much will you have left a month? And after travel costs? Have you run the numbers through an online mortgage calculator?

When I moved, I found a place within a few miles of work. My commute costs went from 4k to zero, because now I cycle. My mortgage/sc/rent was only £50 more than my old rent in Brighton. I saved 4 hrs of commuting a day. I love my job. I never wanted to own 100% of this flat, but buying it was substantially cheaper than the local rent rates, and I've been fortunate that it has climbed in value significantly, so I now have a lot of equity. So for me, it was an easy choice. Is there someone you can chat it through with? A friend or relative who can take an impartial view for you?