Right To Buy and Shared Ownership

Jim3891

Hello,

With the Govt now extending Right To Buy from Council tenants to Housing association tenants I'm already at 50% discount. 

However since moving in I am now on long-term disability benefit and stuck paying rent. It's a lovely place and I wouldn't mind owning it if possible.

I believe the Govt are looking into opening up the mortgage market to those on disability benefit and some schemes do exist (like HOLD) however they seem to be aimed at Shared Ownernship not buying Right to Buy or full mortgages.

My flat is valued around £120,000 and I can put £20,000 down against my 50% discount half leaving £40,000 to borrow.

If I can't borrow that on disability then I'm open to Shared Ownership, my H/A regularly pushes it's availability.

Could I request a % of shared ownership of my 50% RTB discounted amount in theory to get me started at least? I might even be able to buy that share outright.

Or do both schemes operate totally separately and I'd have to pick one?.

Thanks.

Jim3891

In the same context could a RTB discount somehow be converted into a Shared Ownership percentage in the way some mortage lenders accept RTB discount as a mortgage deposit?.

leonj

What makes you think they will extend it to housing associations?  Boris Johnson made once comment about it ages ago and thats it

diggingdude

Regardless of my feelings re RTB, I would be very careful going into shared ownership. You take on 100% responsibility, 100% of the maintenance costs etc yet have a difficult to sell property, have a landlord you have to run changes by etc and the rent usually increases at a much higher rate than the mortgage. Just my view though 

Jim3891

diggingdude said:

Regardless of my feelings re RTB, I would be very careful going into shared ownership. You take on 100% responsibility, 100% of the maintenance costs etc yet have a difficult to sell property, have a landlord you have to run changes by etc and the rent usually increases at a much higher rate than the mortgage. Just my view though 

Thanks, I would only really consider S/A as a temporary fix to get my foot in the door and for full price it's probably not worth the hassle. Combining a RTB discount with the Housing Assoc. preferred shared ownership scheme would be viable. Will bear in mind what you say though.

Jim3891

leonj said:

What makes you think they will extend it to housing associations?  Boris Johnson made once comment about it ages ago and thats it

Govt have been piloting it for a couple of years I believe and the latest Govt paper I could find from April this year says 'Right to buy for council tenants and housing association tenants'. It says anyone with 3 years+ in any social housing is eligible from my understanding. Right to acquire for me was a £9,000 discount so does need levelling.