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Help to buy V shared ownership
Comments
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Got a flat on Shared Ownership a little over 2 years ago, and it's all been fine. I think experiences do vary quite considerably depending on which Housing Association you're with. Ours is Notting Hill Genesis and they're considered quite a good one, I believe. Certainly in our experience they've been fine.
For us a it was a no-brainer. We'd never be able to buy in the area, the mortgage rate is really good (for some reason the bank include the portion we don't own in our equity), and the portion we pay rent on must have been subsidised or set low when they originally built the building, as it's very low compared to the mortgage portion.
One thing that really makes Notting Hill Genesis stand apart from others (from what I gather), is that they will value 'improvements' you make to the property and you get to keep 100% of any increase in the property value derived from them. So when we purchased our place, the previous owner had put in a new kitchen, boiler, etc. in the time they lived there. When they came to sell the surveyor then places a value on any material changes to the property since it was built, and the owner then takes the whole benefit i.e. 100% of the value the surveyor considered those improvements had introduced. So NHG just get their portion on market-based fluctuations.
Appreciate people have different experiences, but I have zero regrets.0 -
The main advantage of HTB over SO is that it's a "normal" property that can be sold on normally onward. You alos don't have to pay rent in addition to the mortgage, only interests after the first 5 years. At which point most people are ready to move to a larger property or remortgage to redeem the HTB EL
That is misleading, you start paying interests on the original amount borrowed (this bit is not affected by property value fluctuations, only the repayment is), starting at 1.75% at year 6 and rising at RPI +1% each year.You will pay about £50 a month if you don't pay the loan off in year 6
So if you borrowed the maximum £240k fro a £600k property in London you will owe £4200 for year 6 or £350/month, not £500
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