Shared ownership earnings rule.

Heisenberg01

Just about to accept offer on my place, so need to start the ball rolling on my next purchase.

My top choice locally is a new build but it's shared ownership.

I read last night (to my dismay) that if you earn too much you can't go shared ownership.

I earn 40k I was looking at a house market value 155k with 75% mortgage and 30k deposit, rent on remaining 88 per month.

Would I qualify?
Also, if not can you buy shared ownership outright??

Mermaid89

Have a look here: https://www.sharetobuy.com/guides-and-faqs/shared-ownership-eligibility/

Also as far as I know you cannot buy outright as all new developments have to have X amount of affordable homes.

Heisenberg01

Anyone on here please clarify??

"Must not be able to buy own home"

Does this mean buy outright, or via a mortgage, ie I have mortgage approval for the full value of the shared ownership I'm after but I couldn't buy it cash???

kingstreet

Speak to the Housing Association or Registered Social Landlord near you.

There is also an Excel spreadsheet for establishing affordability and share purchase levels for shared ownership we complete to establish what is possible.

https://assets.publishing.service.gov.uk/media/58d55b72e5274a06b300000e/Shared_Ownership_Sustainability_Calculator_-_June_2017__FINAL_.xls

Heisenberg01

Thanks, can't open on my phone, IL have a look at work tomorrow.

Heisenberg01

Spoke to the agent selling them even he can't give me straight answer, come in speak to advisor etc etc.

Each application judged on its own merits apparently.

dimbo61

They might want to look at the big picture !
Are you a nurse buying a new build on land that was part of the hospital for example
Sure that in an area crying out for your skills/qualifications they might offer you the chance to establish roots in the local community.
Having family nearby, links to local area etc

Heisenberg01

Going by the calculator it seems I'm eligible, it seems to me it's dependant on size of deposit/ mortgage amount that can be manipulated to fall into the 25/45% requirement.

However I will be on an adverse mortgage , is this a no-no with shared even with a substantial deposit??

kingstreet

No. There are lenders dependent on the type/level/age of the adverse.

You need an experienced shared ownership broker.

Heisenberg01

Know you of such a beast?

kingstreet

Ask friends and relatives for a recommendation.

The HTB Agents who manage SO normally have a list of brokers in their area.