Is it silly to consider shared ownership if we don't have to?

Sandyra

It was really down to affordability. I was buying on my own, anything I was buying was better than long term renting as I was paying someone’s else mortgage. In answer to your question. I guess it’s dependent on how desirable the property is (close to a train station with underground parking in SE London/Surrey border) Both properties in my block have sold with and without share. If you’re not planning to go to 100% then don’t go above 75% as 80% is the threshold for SDLT payment if you elect to pay it in stages. Try and go for the highest share, if you can stretch to 75% great! I don’t think my profession helped in anyway. My job is secure but I didn’t get preferential rates etc other than anyone else would have based on income multiplier. If I was a solicitor, doctor there are a few lenders out there, who offer more for those profession because they are likely to make substantially more as the years progress. 

If there’s two of you and you can afford not to do it, it probably makes sense not to. It’s definitely not financially worth it to staircase if you plan to leave in a few years.

Also with the SDLT relief for FTB which wasn’t available when I bought it does mean I would’ve prefer using that discount on a non SO property. 

csgohan4

sadly some people think buying any part of a house is cheaper than rent and the old adage of not paying someone else's mortgage.  What people don't realise is the false economy SO is for some people. 

 SO is budget house ownership but with all the risks of 100% ownership IMO. 

People rent not to pay someone else's mortgage but to have a roof over their heads and gives mobility to move cities quickly and job changes e.t.c. Can't do that with  a small box flat in London which you paid rip off prices. 

[Deleted User]

If you plan to sell Id either staircase to 100% or keep it at 50%. Otherwise at 75% /80% buyers have to find so much to purchase it, they may we well go down the road and get one with a 20% Help to Buy equity loan ( and in London at 40%) which is free for the first 5 years rather than pay rent on that portion. Watching the market - those at 80% dont sell easily

lis1320

Thanks everyone, I think we're going to try to not do shared ownership. Will have to see what the market is like in a year's time when we're ready to buy, but I think since we could afford a two-bed, there's no point faffing around with some of the disadvantages of SO.

bucksbloke

If I could I would avoid SO. Too much faff.