Shared ownership household income

lruszczak

Hi All,

Planning to buy shared ownership home as that is all I can afford.

Now have a bit of a situation where together with my partner our total income is above threshold so we would have to use just my income.

When looking for one do we have to provide both of our incomes or can I be the only one buying the property in my name only?

We are not married but renting together.

Thx for advice.

moneysavinghero

If your combined income is above the threshold then you can afford to buy without the Shared Ownership - that is the whole point of the caps. Maybe you won't be able to afford the particular house you want, but you will  be able to afford a house.

lruszczak

That is not a question i asked but also that statement is rubbish.

25k deposit and fees on 95% mortgage for 360k flat.
Mortgage monthly comes to 1.8k as low deposit and 1st time mortgage means high apr.

lruszczak

Shared ownership same flat 10-15k deposit with fees and 1100 monthly mortgage/service charge and rent. That is close to half of deposit and half of monthly rent for 60% stake.

Redwino222

I suppose how would they know you have a partner.  However the person not on the lease would be taking a huge risk.  If you split up the house only belongs to one of you.

I note you are keen that it is you whose name it is in🙂.  

If I was your other half I would run a mile.

[Deleted User]

You don't have to buy in joint names if you dont want to but read the question on the application as im pretty sure it references 'household income' rather than applicant income,  so i would expect you to be rejected if you complete an honest application 

tinytiddles

Just something else to bear in mind - if they do accept just your income, the HA will do an affordability assessment and will tell you what share you can buy based on that. If they deem you to be able to purchase 80% for example that’s what they will sell you. The aim of SO is to get you to buy the biggest tranche possible in the first transaction.

lruszczak

Thx.

I know about buying biggest share one can afford and happy with that.

We were always sharing everything down middle just in case in future it was handy.

Frankly while deposit is an issue its not the biggest one. The 95% mortgage part is odd as Apr is so high its way more expensive then equivalent rent. So we were hoping buy under me, add her few months down line and start staircasing there.

Owleyes00

lruszczak said:

Thx.

I know about buying biggest share one can afford and happy with that.

We were always sharing everything down middle just in case in future it was handy.

Frankly while deposit is an issue its not the biggest one. The 95% mortgage part is odd as Apr is so high its way more expensive then equivalent rent. So we were hoping buy under me, add her few months down line and start staircasing there.

You won’t necessarily be able to do that. Some housing associations have minimum ownership term requirements before you can begin to staircase.

As pp have said, it sounds as though with your joint income a shared ownership is NOT all you can afford. As pp have said, not necessarily the property you want but something.

Where are you looking to buy? How much is your deposit and what is your income? 

AdrianC

lruszczak said:

That is not a question i asked but also that statement is rubbish.

25k deposit and fees on 95% mortgage for 360k flat.

Where on earth are you that £360k is entry-level flats?

If your income is high enough to support a £340k mortgage, you shouldn't find it hard to increase that saved deposit rapidly.

Redwino222

Anything I have read on line says they do an eligibility check when you add someone to the lease.

Your partner wouldn’t qualify because your household income would be too high.

i suppose they are live to attempts to cheat the system