Shared Ownership buying criteria

surfer9

Hi,

I think generally the priority criteria on being able to buy a Shared Ownership property is as follows...

1. British Armed Forces (and those honourably discharged in the last two years, or if they are the surviving partner of regular service personnel who have died in Service, where they apply within 2 years of the date of being bereaved).

2. Households living in the private rented sector in the borough.

3. First time buyer households living or working in the borough who cannot afford to buy on the open market

4. Over occupied shared owners in the borough who need to move but cannot afford a property on the open market

5. All other first time buyers who cannot afford to buy on the open market

6. Existing home owners living in the borough who need to move i.e. relationship breakdown


Has anyone here been in criteria 5 or 6 been able to buy a Shared Ownership property or even get a chance to view one of these properties?

How often do those people in those criteria's get an opportunity to view these properties?

The borough I live and work in is a borough that is ridiculously expensive, any 1 or 2 bed Shared Ownership apartment here is £300,000-£400,000. It's unaffordable. As well as that they aren't building anything but over-priced apartments in the centre of the town. There are no affordable Shared Ownership properties in the borough.

I have been looking into Shared Ownership properties outside my borough, I have been looking at my very own 'home town', the town I was born in and grew up in, but no longer live in. It seems I am well down the pecking order of buying there. I believe I am classed as criteria number 5. Though I am unsure, as on the Help to buy application they ask if you have any local connections. My father still lives in that town, I grew up in that town and I was born in that town, but based on this priority 'chart' I am possibly number 5 in terms of priority? The same as someone from Belarus who has no link to the town whatsoever?

Basically I am asking if it is likely that I'd get the chance to purchase a Shared Ownership property in a district I do not live or work in? If not - should I move, and have people moved simply so that they have the chance of being first in line to see these properties?

There are 2 large developments in 2 different local boroughs and it may be worth me moving to those towns. It just seems a bit drastic to move in the hope that at some point down the line I may get an opportunity to purchase one.

Newbie78

It's definitely very tough, we had been trying for some time in our own area and missed out a couple of times. We were lucky as someone pulled out and we were next in line


My advice is go to the free shows they have around the country, speak to all the shared ownership/HA people, ours was sovereign living. Get them chatting talk about the area you are looking at and they may have properties coming up and you can get on the list sooner


But there is definitely more demand than there is SO properties I'm afraid

Andyjflet

Ive just bought a new build S/O house in the town where I work, no other links. Its a 3 bed semi lovely design and its £185k of which Im buying 50%
I met with the company selling them / Hello Homes, on site, viewed the property, there are 11 and there were 100 applicants dwindled down to 50 after an initial telephone interview.

I would get the help to buy web site open and register then get on the web sites of shared ownership companies and see what they have to offer, I was originally going for a pre-loved apartment but this new build was too good to turn down.

Lunchbox

We're in London and were in a very similar situation to you; no SO available in the borough we lived in and certainly fit into your category 5, with no other 'priority' criteria. We managed to purchase an SO flat in a borough we neither lived nor worked in, and even got a 3 bed despite them being listed as only for those with children, which we don't have, it was remarkably straightforward.

Some Housing Associations are far more flexible than others; the variation in criteria between them is massive. The HA I purchased with has a new property currently available with the same agents we bought ours through; if you're in London and you'd like me to send you the name of the HA just drop me a PM

Lioness_Twinkletoes

I am selling (on behalf of my LA) a three bed house and we've had more than 100 expressions of interest. It's tough on potential buyers.

Zeni

surfer9 wrote: »

I have been looking into Shared Ownership properties outside my borough, I have been looking at my very own 'home town', the town I was born in and grew up in, but no longer live in. It seems I am well down the pecking order of buying there. I believe I am classed as criteria number 5. Though I am unsure, as on the Help to buy application they ask if you have any local connections. My father still lives in that town, I grew up in that town and I was born in that town, but based on this priority 'chart' I am possibly number 5 in terms of priority? The same as someone from Belarus who has no link to the town whatsoever?

I would check this, as when I was looking into SO that was based on local connection said parents living in that area so If your dad still lives there that should fulfil that. But of course it could be different rules for different areas!

Elfbert

When I first moved to London (2012) I got an SO property in a borough I neither lived nor worked in (worked in the next one over though.) So we would be a 5.

We've just sold that and moved to a larger place (also SO, different HA), and again, it's not in a borough we lived or worked in (but again, we work in a neighbouring borough.) We would have been...not even on your list?

Both were 'second hand' properties, not new build. I think we were lucky with the second one, as I know at least 5 people applied for it.

Grant_Urismo

We bought 8 years ago and were in category 5 - we were a bit of an odd case though, it's a big 4 bed house which made qualifying to buy it quite difficult. Being recently self-employed with no proof of earnings, I had the just right combination of a big enough deposit to buy, but a provable inability to get a mortgage.

surfer9

Andyjflet wrote: »

Ive just bought a new build S/O house in the town where I work, no other links. Its a 3 bed semi lovely design and its £185k of which Im buying 50%
I met with the company selling them / Hello Homes, on site, viewed the property, there are 11 and there were 100 applicants dwindled down to 50 after an initial telephone interview.

I would get the help to buy web site open and register then get on the web sites of shared ownership companies and see what they have to offer, I was originally going for a pre-loved apartment but this new build was too good to turn down.

£185k is the full property price? for a brand new 3 bedroom house?

Jesus. I wish prices were that cheap here.

It's £300,000 for a new Shared ownership 1 bedroom apartment here. That's all that is on offer here.

surfer9

Zeni wrote: »

I would check this, as when I was looking into SO that was based on local connection said parents living in that area so If your dad still lives there that should fulfil that. But of course it could be different rules for different areas!

Yes - it doesn't make much sense to me...

On the Help To Buy application to get permission to buy a Shared Ownership property it asks about local connections and gives you a wide range of things to select such as birthplace, family living there, work, living there etc.

Yet this local authority in questions has nothing in their criteria about having a local connection other than living or working there.

I was told via email that they were about to show people in categories 1 and 2 the properties, and that if I felt I was in category 1 or 2 then I should let them know. Based on what those 2 categories state, me being born there, having lived there in the past ,and my father currently living there doesn't matter to them. So I did not state I believed I was in those categories, but I did state the 3 links I have to that town. I got no email back saying that I can be classed in category 2. So it seems I am classed with just as much entitlement to view these properties as someone from Timbuktu.

Yes it is frustrating that I am pretty much restricted to Shared ownership properties in the town I live and work in. A town which is ridiculously overpriced and they are building very few properties all of which are priced for wealthy people. I thought schemes like this were supposed to help the less well off who are struggling to get on the property ladder. Someone that can afford to get a mortgage on a 35% share of a £300,000 1 bedroom apartment in which the rental costs and service charge are £700 alone, is not someone who is struggling.

Yes it is frustrating that I am way down the pecking order of buying a property in a town where family members live, which is my actual place of birth, a place I have lived in the past.

kimbyanne

We purchased our SO house a couple of years ago. It was hard, so many criterias had to be met for us to even be shortlisted. I believe the main ones were already living in the area, local connection to the area, family in the area, working in the area and/or currently living in a Housing Association property.

We didn't live in the area but had family in the area and my partner worked in the area. We were also then living in a housing association flat.

First time we applied, there were x2 bed houses available and over hundred applications and we didn't even get shortlisted and the reason given was people who lived in the area got prority. Second time we applied was the same development but there were another six two bed houses. This time we did get shortlisted. However during this time we were offered one of the original two houses as apparently the shortlisted had been worked through and either the applicants couldn't afford the mortgage/didn't meet affordibility or "apparently" hadn't realised they were S/O!!

We got lucky I think, I imagine we would have got one of the second phase of six but we wanted one of the original two (bigger plots).

However I also know around here it's two bed starter homes that are in demand for SO as the three bed SO across from us was empty for ages as they couldn't find anyone who could afford to purchase it who met their criteria so in the end a retired couple purchased it which went against all the stuff we were told about not being allowed to purchase a three bed if it was just a couple (had to be a family)