Shared ownership question…

housebuyer143

Katlou said:

It’s interesting as the mortgage advisor I spoke with today is an expert in shared ownership and said this sounds incredibly harsh, and that he has put through many successful applications previously for similar situations, ie one spouse being a homeowner, or one having bad credit which is not allowed for shared ownership.

Either way I am going to discuss with the government next week and will then update…

Good luck..I do hope you are able to get it 👍

sidneyvic

How can the rental possibly be worth less than he owes when prices have been sky rocketing for last few years and a BTL requires a minimum of 20% deposit !?!? 

user1977

sidneyvic said:

How can the rental possibly be worth less than he owes when prices have been sky rocketing for last few years and a BTL requires a minimum of 20% deposit !?!? 

Perhaps because prices have not been "sky rocketing" for all types of properties, everywhere?

sidneyvic

user1977 said:

sidneyvic said:

How can the rental possibly be worth less than he owes when prices have been sky rocketing for last few years and a BTL requires a minimum of 20% deposit !?!? 

Perhaps because prices have not been "sky rocketing" for all types of properties, everywhere?

Show me an example of a property worth over 20% less than it was a few years ago ....

boxer234

You are married which technically means you own half the house ? Or is that wrong ? If you were to divorce it would be seen as an asset.  

user1977

sidneyvic said:

user1977 said:

sidneyvic said:

How can the rental possibly be worth less than he owes when prices have been sky rocketing for last few years and a BTL requires a minimum of 20% deposit !?!? 

Perhaps because prices have not been "sky rocketing" for all types of properties, everywhere?

Show me an example of a property worth over 20% less than it was a few years ago ....

Any flats with cladding (or similar issues) for a start.

Katlou

Just to confirm I had the following response from Homes England, the government department who regulates shared ownership:


Thank you for your enquiry regarding your eligibility for shared ownership.  

For shared ownership homes grant funded by Homes England there is nothing at present in our guidance to prevent one person (of a couple) applying as a sole applicant.  The sole applicant would become the sole legal owner of the shared ownership home and, as such, the eligibility, affordability and sustainability of the purchase will need to be assessed against the sole applicant.  An exception to this with regard to eligibility is the household income threshold of £80,000 which should be assessed against all relevant household members.  This is set out in Homes England’sCapital Funding Guide - Shared Ownership at paragraph 3.3.2.

If the housing association in question wishes to get in touch with us to seek clarification then please ask them to do so viasharedownership@homesengland.gov.uk.


So what I thought was correct, the rules only apply to myself, the sole applicant.

Will be forwarding this onto the housing association today and hopefully can continue the application. 

Katlou

boxer234 said:

You are married which technically means you own half the house ? Or is that wrong ? If you were to divorce it would be seen as an asset.  

Only if it was in joint names which it is not. 

RAS

Katlou said:

boxer234 said:

You are married which technically means you own half the house ? Or is that wrong ? If you were to divorce it would be seen as an asset.  

Only if it was in joint names which it is not. 

Neither comment is fully correct.

Katlou does not own half the house because they are married to someone who owns the property.

And the husband's house is an "asset of the marriage" which would be taken into account in any financial settlement, alongside Katlou's potential house and both parties' savings and pensions, if the couple divorced. Except it seems to currently be a liability, although it would still count towards the balance of the settlement.