Shared ownership

trishrv

Hi, my question is how is the percentage to be sold as shared ownership established? I am registered with Help to Buy and the majority of the newbuild houses are advertised as being sold with 40% interest but following a financial assessment, it turns out that I can only afford 35% based on my age (50) and my salary.  Is there a chance of newbuilds being sold for a lower percentage than 40% or do I just face up to the fact that I will NEVER EVER get on the property ladder (being as time is most definitely not on my side)?

newbieFTB

Does it have to be a new build?

Where I live (South East) the rent element of the new build houses is way more expensive than on older resale properties - more than double for one house that I looked at.  With shared ownership resale it's not uncommon to have a 30% share for sale

sidneyvic

Shared ownership is not really getting onto the property ladder. You will have none of the benefits of owning combined with none of the benefits of renting. It is a real lose / lose situation.....

newbieFTB

sidneyvic said:

Shared ownership is not really getting onto the property ladder. You will have none of the benefits of owning combined with none of the benefits of renting. It is a real lose / lose situation.....

For someone in the situation of the OP, who doesn't even meet the affordability criteria for 40% of a house, what would you suggest as an alternative?

Nobody in their right mind who could afford (or be accepted for) a mortgage on a whole house would go down the shared ownership route - but for those on a single income, with no real prospects to double that income, shared ownership provides a stable home and often for much less than the cost of renting. What I pay in mortage/rent for a 3 bed house with garage/garden in a lovely area wouldn't even get me a room in a shared house in a dodgy area!

housebuyer143

sidneyvic said:

Shared ownership is not really getting onto the property ladder. You will have none of the benefits of owning combined with none of the benefits of renting. It is a real lose / lose situation.....

I don't think that's right . You get the stability of owning your own home and you own a little of something, so is better then renting 

Also if you are on a low enough salary then you are liable for universal credit housing element on the rent share, which can actually make some low earners better off than it would be if they owned 100%.
My sister for one is going from paying £1200 with no assistance due to savings she holds for the deposit, to paying only a mortgage on the 40% share of £400 and the rest covered by benefits. 
Yes she has maintenance costs but she also has security and is much better off than she is renting.
For some people this is the only way they will ever get on the ladder.

trishrv

newbieFTB said:

Does it have to be a new build?

Where I live (South East) the rent element of the new build houses is way more expensive than on older resale properties - more than double for one house that I looked at.  With shared ownership resale it's not uncommon to have a 30% share for sale

No it doesn't need to be a newbuild at all but I haven't seen any resales recently that are less than 40%.  I am not swayed by the comment of shared ownership not really getting onto the property ladder, as stated "what other option do I have".  I'm just trying to gauge why some housing associations think that 40% is affordable for people on single incomes - no wonder there are so many couples breaking up, they are forced together to enable them to get a joint mortgage.  I'll just sit tight until something affordable becomes available but won't hold my breath!

newbieFTB

trishrv said:

newbieFTB said:

Does it have to be a new build?

Where I live (South East) the rent element of the new build houses is way more expensive than on older resale properties - more than double for one house that I looked at.  With shared ownership resale it's not uncommon to have a 30% share for sale

No it doesn't need to be a newbuild at all but I haven't seen any resales recently that are less than 40%.  I am not swayed by the comment of shared ownership not really getting onto the property ladder, as stated "what other option do I have".  I'm just trying to gauge why some housing associations think that 40% is affordable for people on single incomes - no wonder there are so many couples breaking up, they are forced together to enable them to get a joint mortgage.  I'll just sit tight until something affordable becomes available but won't hold my breath!

I take it you've set up Rightmove alerts? Also have a look on the Housing association individual websites as most HA's don't allow sellers to advertise on the open market for the nomination period. I was also registered on the Help to Buy website which meant I was 'pre-qualified' for HA properties. 30% shares seemed fairly common when I was looking.

Where I live one particular estate agent seemed to have more SO properties than normal so I registered with them and rang them once a week asking if anything new was being listed to try and get in first - I also let it be known that I would be using their mortgage broker, even though it meant I missed out on a cashback deal by going direct.

All that said I found my property through a regular Rightmove search, if you didn't ring within 10 mins of the ad going live you couldn't even get a viewing but I struck lucky and now have an amazing home that I would have ZERO chance of living in if I was renting.

Good luck!