Shared ownership for dummies

boxer234

Hello I am new here and wanted to ask about shared ownership.  I separated from my husband last year.  We sold our home and went 50/50 on the profit.  (Luckily before Covid)  I have enough left over to buy a small 1 or 2 bed in my very expensive area.  I have also looked at a few shared ownership properties which look amazing and far nicer than anything I can afford and closer to work.  

I don’t understand the stair casing.  Right now I can get a mortgage for 209000 these houses are around 350 -400000 I could never afford this my wages will not ever be that high so how would I ever own it outright?  

Another question i am currently renting do I become a first time buyer again ? I’m tempted to stay put and save like crazy for another year so I can get more for my money.  So do I; buy outright or look at the shared ownership route ?  Thank you all for your time. 

[Deleted User]

Shared ownership can work out well, as you are right you could get a much better place buying 50% rather than 100%.
On a full price of £400k you could buy 50% ( deposit and mortgage ) and you pay the housing association a reduced rent of 50% on the bit you dont own. You dont ever have to staircase to the full 100% 
In fact if you look to later sell, home owned around the 25-50% level are easier to sell, as if you bought say 85% - thats like selling almost a whole house so they dont shift as fast. 

2 bed houses in east London/Essex ( very rare ) owned at around 25-40% literally fly off as soon as they are put up for resale. 
Im looking at shared ownership for one of my sons.  That will get him his own place, and he will keep to around a max of 40% so it sells when he gets older and gets on the full housing ladder. 

You wont be a first time buyer for stamp duty, but you will be accepted as a shared ownership buyer having had a relationship split and needing to get back on the ladder. They do sometimes check the house you are going for isnt in excess of your housing needs ie single person going for 3 beds etc 
some developments / resales have their own criteria too as to priority 

boxer234

Densol said:

Shared ownership can work out well, as you are right you could get a much better place buying 50% rather than 100%.
On a full price of £400k you could buy 50% ( deposit and mortgage ) and you pay the housing association a reduced rent of 50% on the bit you dont own. You dont ever have to staircase to the full 100% 
In fact if you look to later sell, home owned around the 25-50% level are easier to sell, as if you bought say 85% - thats like selling almost a whole house so they dont shift as fast. 

2 bed houses in east London/Essex ( very rare ) owned at around 25-40% literally fly off as soon as they are put up for resale. 
Im looking at shared ownership for one of my sons.  That will get him his own place, and he will keep to around a max of 40% so it sells when he gets older and gets on the full housing ladder. 

You wont be a first time buyer for stamp duty, but you will be accepted as a shared ownership buyer having had a relationship split and needing to get back on the ladder. They do sometimes check the house you are going for isnt in excess of your housing needs ie single person going for 3 beds etc 
some developments / resales have their own criteria too as to priority 

Thank you. I want what I buy to be long term I have had so much up heval I can’t take any more.  I think I would want to own the whole house eventually.  I worry about terms and conditions and leasehold.  

tatartan

I’d be very careful with shared ownership. You’d need to really understand the terms and conditions of your specific property. It wouldn’t be for me because I’d spend all my time worrying about how I’m going to get stung at some point. BUT I’m risk averse and so prefer straightforward solutions. Admittedly I don’t know much about them other than the key principles of the schemes, however I have read horror stories and feel so sorry for the people trapped in those messes