Savings for Shared Ownership

Magick

Hi
I'm applying to purchase a house using the Shared Ownership scheme, it's the only way I can afford to. I fit the criteria so am completing the form.
I reached the part where I need to fill in what savings I have. I wish to keep some of my savings by in case of an emergency or things I will need to buy.


I telephoned to see what I need to put in this section and was advised as long as I have £2500 I will qualify. I said I have this and some more and was advised then I need to put ALL of my savings in this box to assess what % of the property I will purchase.


I'm concerned I will be forced to use all of my savings on purchasing the largest amount % wise of the property and have none left.


It seems sensible to keep some by in case my car needs work ever (so I can get to work) or for other things that are importantly needed.
Any advice or experiences very welcome. Thanks.

G_M

You are sensible.


Although I have mixed feelings about shared ownership generally, that is just a personal view.


More importantly for you, it should be you who decides what % to purchase, and what debts to take on. Not them.


Only tell them about the savings you want the to know about. Your other savings are your own business.

HampshireH

Your eligibility will be based partly on your savings.

Don't hide it. You could under that logic hide 100k to look like you are eligible which would be fraud.

Just be honest. Could be a very big mistake to lie on the paperwork.

HampshireH

GM what if they find out later and pull the offer?

As you say nobody can force the OP to take a greater share than they can affors. Thats the OPs choice.

I also have views on SO and personally would avoid it. But i wouldnt want to lose the opportunity for failing to disclose the truth if it was my only option.

scd3scd4

I am not aware you have to put all your saving in, Neither I or my daughter did. They do encourage you to purchase a big as share you can..............which does make sense.

Magick

I'm not sure about Shared Ownership either but appears the only way I can purchase a house? If I had 100K I'd have no problems purchasing but I have nowhere near this unfortunately, only want a small place. I think it is fair to put down what I can afford to put towards a house without risking poverty if my car fails, if I need repairs/emergencies etc. If I still can't afford based on what I am happy to spend on a house, I probably just won't go ahead. I don't think it would be fair to force me to use everything I have on the house, too scary a position to be in. I don't think anyone would use every penny that they have it wouldn't be sensible.
I'll see how it goes. Any further advice welcome - thank you.

Magick

scd3scd4 wrote: »

I am not aware you have to put all your saving in, Neither I or my daughter did. They do encourage you to purchase a big as share you can..............which does make sense.

Thanks for this - reassuring if that's what you did. The person on the phone may have been wrong. It happens.

G_M

Fair point - I was focussing on the % element. I'm not familiar with the eligibility criteria so probably should not have responded!


If eleigibility is means tested, then yes, you'll have to disclose it all.

HampshireH

OP I expect the form you have to fill out has a declaration at the end which states your information is accurate and true. A bit like this

I/We hereby declare that the information that has been provided in the form
accurately reflects my/our current circumstances.
The information given on this form is a true statement. I/we understand that I/we
may lose any housing that is offered if I/we have given false information.

The shared ownership guidelines state that reasonable savings for moving and furnishing etc should be considered by the person checking the application.

From the gov.uk site

Applicants should have access to funds or be allowed to retain sufficient savings to cover the costs and fees associated with buying and moving into their new home.

Such costs and fees would include:

Legal transactionsStamp Duty Land Tax where applicableMortgage application feesValuation fees andAny associated moving costs

This could typically be up to £5,000 where Stamp Duty Land Tax is included depending on the purchaser’s circumstances. Where applicants are required to provide essential items (for example a cooker or fridge) because they do not already own such items, and they are not being provided as part of the purchase, consideration can be given to allowing a reasonable amount of savings to be retained for this purpose.

Magick

No, I don't believe it is means tested, from what they said you need to be able to afford it and meet 4 criteria - means testing wasn't mentioned. I met the 4 criteria so decided to complete the form. I got the impression that it was to assess the % you would purchase.

00ec25

Magick wrote: »

No, I don't believe it is means tested, from what they said you need to be able to afford it and meet 4 criteria - means testing wasn't mentioned. I met the 4 criteria so decided to complete the form. I got the impression that it was to assess the % you would purchase.

so your actual question is:
do I lie, or do I tell the truth?