Shared Ownership

zoefaye

Hi, hope someone can help me out with this question....
I recently inherited £100k, thought this would be a wonderful foot up to purchase a property, however where i live a 2 bed flat is around 190k and being self employed with a lousy income means the bank wont give me a mortgage for anywhere near enough to cover the difference despite the fact the mortgage would be way less than i currently pay in rent, but "computer says no" how can i have this money and still not be able to buy? so, what about shared ownership i thought, my question is, can i use the 100k to buy part of the property outright and rent the other half, hopefully being able to get a small mortgage to buy another chunk at a later date..... i have trawled the internet for an answer to this but its all about having a mortgage on the part you own.... i cant get a mortgage so can i simply buy my part?? any help with this appreciated as i am banging my head on a wall....
thanks

Sus59

Yes, my daughter did just this. She is on a low income but had savings so she bought a 25% share of a flat outright without a mortgage and is paying rent on the remaining 75%.

What matters is that you do not earn enough to buy a property outright with or without a mortgage.

Good luck.

zoefaye

That's really helpful, Thank you, yes i may have a chunk of money but have low income,so this is interesting... dont suppose you know if there is a criteria for renting the other chunk do you?
Thanks again.

da_rule

Have you had a look on this site: https://www.sharetobuy.com/faqs/ There is a section eligibility and how you can apply etc.

AdrianC

zoefaye wrote: »

I recently inherited £100k, thought this would be a wonderful foot up to purchase a property, however where i live a 2 bed flat is around 190k and being self employed with a lousy income means the bank wont give me a mortgage for anywhere near enough to cover the difference despite the fact the mortgage would be way less than i currently pay in rent, but "computer says no" how can i have this money and still not be able to buy?

Turn it around. You're asking somebody to lend you £90k, despite having no employer, and "lousy income".

my question is, can i use the 100k to buy part of the property outright and rent the other half

Shared ownership requires somebody to own the other bit, and rent it to you. Not your bank, not the vendor. It's usually a housing association. So you need to find a HA who are running shared ownership schemes around your area, and whose criteria you qualify for. They probably won't be too interested in somebody with £100k in the bank, because their raison d'etre is to help people who need help, not who have six figure sums kicking about.

Your best bet is invest the money while you sort your real problem out - your lack of provable income. Get a track-record of reliable income that you can demonstrate to a lender, and you'll get a mortgage.