Shared Ownership - Income Eligibility

jr1190

Hi everyone. To kick off, I’m happy with the various pros and cons of Shared Ownership, well aware that it’s not for everyone. My partner and I have found an absolutely ideal property that is on the market for 25% of a £415,000 total value.

The problem is that we’re slightly above the income threshold of £90,000. I earn £40,000 and she earns £55,000 (but has a slightly colourful credit report). We aren’t married, in case this is important.

I have a deposit (my own savings) ready to put down and to have the mortgage in my name only, would we be able to proceed without her legally involved? She would effectively be a lodger with no formal agreement (again, we’ve talked about this together and we’re 100% comfortable with this).

When doing an affordability check with the HA, would I be able to count her rent contribution to the ‘other income’ subsection?

Thanks in advance for your help!

HampshireH

She wouldn't be a lodger though if your in a relationship.

Its also based on household income.

haras_nosirrah

Hi - I am a specialist affordable housing mortgage advisor and am on the panel of 2 london housing associations and have been for 10 years.

If you are not married then you may well be able to do the application in one name

You would however not be allowed to use her income at all for any affordability - neither the mortgage nor the housing association. She would also not be on the deeds or the lease and would have no rights over the property

AdrianC

You earn £90k between you. 25% shared ownership, even on a £400k property, is not intended for people with your income. Leave this one to people who can't afford to pay £400k for a non-SA property, like you can.

jr1190

AdrianC wrote: »

You earn £90k between you. 25% shared ownership, even on a £400k property, is not intended for people with your income. Leave this one to people who can't afford to pay £400k for a non-SA property, like you can.

I appreciate the point, but with all due respect you can’t possibly say what is and isn’t possible for somebody in my position with so little information.

The outgoings on my partner’s net earnings are servicing significant levels of debt I had no hand in accruing. After this, our combined ‘net’ falls well below the £90k threshold.

Regardless, I’ve saved for a deposit myself, and I by myself am below the earnings threshold. Surely the scheme is set up to afford people the opportunity to get on the housing ladder who wouldn’t otherwise? As you say.

jr1190

haras_nosirrah wrote: »

Hi - I am a specialist affordable housing mortgage advisor and am on the panel of 2 london housing associations and have been for 10 years.

If you are not married then you may well be able to do the application in one name

You would however not be allowed to use her income at all for any affordability - neither the mortgage nor the housing association. She would also not be on the deeds or the lease and would have no rights over the property

Thank you for the insight!

As I say, we’ve discussed the fact that she wouldn’t be on the deeds, and we’re 100% comfortable with this, and the implications.

When filling in affordability and eligibility criteria, is it best to play this with a straight bat and say that my partner will be living in the property but not involved in the mortgage? Or would it be easier to not mention this and put myself forward as the sole occupier?

HampshireH

Do not lie about your occuancy. In doing so your application will be fraudulant.

If it asks you tell. Likewise to your lender.

It is down to the landlord to determine your eligibility so why not give them a call?

AdrianC

jr1190 wrote: »

I appreciate the point, but with all due respect you can’t possibly say what is and isn’t possible for somebody in my position with so little information.

The outgoings on my partner’s net earnings are servicing significant levels of debt I had no hand in accruing.

That sounds like "slightly colourful credit history" is an understatement.

Regardless, I’ve saved for a deposit myself, and I by myself am below the earnings threshold. Surely the scheme is set up to afford people the opportunity to get on the housing ladder who wouldn’t otherwise? As you say.

So your household is in substantial debt, despite substantial income, but looking to purchase a property...

It seems to me like you need to stop and have a think about how this is all going to work going forward.

haras_nosirrah

jr1190 wrote: »

Thank you for the insight!

As I say, we’ve discussed the fact that she wouldn’t be on the deeds, and we’re 100% comfortable with this, and the implications.

When filling in affordability and eligibility criteria, is it best to play this with a straight bat and say that my partner will be living in the property but not involved in the mortgage? Or would it be easier to not mention this and put myself forward as the sole occupier?

tell them partner will be living in the property but not on the mortage due to credit score.

As you are married this should be ok (it would be with the housing associations I work with but they are different so can't guarantee)

Cheeky_Monkey

haras_nosirrah wrote: »

tell them partner will be living in the property but not on the mortage due to credit score.

As you are married this should be ok (it would be with the housing associations I work with but they are different so can't guarantee)

They are not married - see OP