Shared Ownership - want me to speak with their broker

MickeyD_2

Hi all,

I've recently seen a Shared Ownership property that I am interested in. However, before the agent/building company will book me in to view the show home, they want me to speak with their financial adviser, to check whether I would be eligible for the SO scheme. Would you be able to let me know if this is common practice?

I am concerned that I will not have any leverage around the property price, as they will know what is affordable in my circumstances. Alongside this, I have also spoken to my own broker, who has confirmed, and who has provided me with documentation to state that, I should be good for the SO scheme going forward. I have been told that although I have done my own checks, and my broker has confirmed, I would still need to speak with their financial adviser.

Many thanks!

Chandler85

Often Shared Ownership has lots of criteria attached, as to whether you are eligible.  For example a multi millionaire wouldn't be eligible etc.

Some mortgage lenders won't lend on them (or that use to be the case) and often the prices are almost fixed by the Housing Associations etc.  I wouldn't worry about it from a leverage point of view because of how the prices are almost controlled.  It is probably just another hoop to jump through.

Toucan_toucan

Very common. The housing association need to ensure that you are eligible, and will want you to buy the largest share that you can afford. You don't have to use them to get a mortgage, it's more about vetting your application.

As the poster above says if it is a new build and you're the first owner there's very little negotiation to be done.