Shared Ownership Rental Terms

afcal72

I am looking to find a shared ownership company that is flexible with screening terms. 
The problem I am trying to overcome is that I am moving from the USA and cannot show a UK income. The company I'm looking for will be able to look at my A+ US credentials to make a fully informed decision. Are there any boutique companies out there that can help and get me past 'the computer says no" issue? 

Brie

You might be in a situation where they want you to give 6 or 12 months rent in advance.  Or ask for a guarantor.  Like a relative here or your employer????

afcal72

I have offered 5 years rent in advance on a 50% ownership cash purchase. They all seem to want to see an income of 12k. If you know anyone who would take advance rent in place of income that would solve my problem. 
( The guarantor wont work for me as my relatives all own a home which negates them from participating in the scheme and there is no UK employer. )

gazfocus

How are you planning to fund the portion of the house you want to buy? You're going to find it nigh on impossible to get a mortgage if you cannot show a UK income with at least some history with an employer, let alone without having any sort of credit history in the UK. 

afcal72

Thankfully the purchase of my share is not a problem. 

gazfocus

afcal72 said:

Thankfully the purchase of my share is not a problem. 

In that case, in my experience, the housing association I bought my shared ownership property from (though this was about 12 years ago!), didn't do any kind of credit check for the rental portion.

However, all housing associations (who are the ones that typically own/sell the shared ownership properties in the UK) are legally required to do affordability assessments and will clearly need to see some evidence of a regular income in the UK, so you're going to struggle to overcome that as they won't be allowed to proceed without an income that meets their affordability criteria. 

afcal72

ok that's good to know those arrangements exist, or existed 12 years ago anyway. What was the name of your shared ownership company, maybe I can give them a call to see if they have anything going on these days.

_Penny_Dreadful

afcal72 said:

I am looking to find a shared ownership company that is flexible with screening terms. 
The problem I am trying to overcome is that I am moving from the USA and cannot show a UK income. The company I'm looking for will be able to look at my A+ US credentials to make a fully informed decision. Are there any boutique companies out there that can help and get me past 'the computer says no" issue? 

afcal72 said:

I have offered 5 years rent in advance on a 50% ownership cash purchase. They all seem to want to see an income of 12k. If you know anyone who would take advance rent in place of income that would solve my problem. 
( The guarantor wont work for me as my relatives all own a home which negates them from participating in the scheme and there is no UK employer. )

That's not how HTB Shared Ownership works.  You need to demonstrate that you can meet the affordability using your income and you currently have zero UK income.  Offering rent in advance is not going to circumvent your lack of UK income and nobody cares about your A+ US rating.  At the time you are not eligible for HTB Shared Equity.

afcal72

_Penny_Dreadful said:

afcal72 said:

I am looking to find a shared ownership company that is flexible with screening terms. 
The problem I am trying to overcome is that I am moving from the USA and cannot show a UK income. The company I'm looking for will be able to look at my A+ US credentials to make a fully informed decision. Are there any boutique companies out there that can help and get me past 'the computer says no" issue? 

afcal72 said:

I have offered 5 years rent in advance on a 50% ownership cash purchase. They all seem to want to see an income of 12k. If you know anyone who would take advance rent in place of income that would solve my problem. 
( The guarantor wont work for me as my relatives all own a home which negates them from participating in the scheme and there is no UK employer. )

That's not how HTB Shared Ownership works.  You need to demonstrate that you can meet the affordability using your income and you currently have zero UK income.  Offering rent in advance is not going to circumvent your lack of UK income and nobody cares about your A+ US rating.  At the time you are not eligible for HTB Shared Equity.

That system is there to see if you will pay the rent. Affordability against income is one way of doing that. Income is only as good as the notice period of your job. Another way to guarantee payment would be just to show them (or even better give them) the money. I do not see what's wrong with that but getting to someone who is not following the script but writes the script is difficult.

eddddy

afcal72 said:

That system is there to see if you will pay the rent. Affordability against income is one way of doing that. Income is only as good as the notice period of your job. Another way to guarantee payment would be just to show them (or even better give them) the money. I do not see what's wrong with that but getting to someone who is not following the script but writes the script is difficult.

You're talking as though 'Shared Ownership' is a commercial scheme that's purely run for profit.

But if this is Shared Ownership through a Housing Association, it's part of a government scheme to help people get onto the property ladder, who can't afford to buy a property in the normal way.


So being able to afford 5 years rent in advance isn't part of the government's eligibility criteria for the scheme.

The government have decided the profile of the people they want to help, and you don't seem to fit within that profile.

Bradden

afcal72 said:

eddddy said:

afcal72 said:

That system is there to see if you will pay the rent. Affordability against income is one way of doing that. Income is only as good as the notice period of your job. Another way to guarantee payment would be just to show them (or even better give them) the money. I do not see what's wrong with that but getting to someone who is not following the script but writes the script is difficult.

You're talking as though 'Shared Ownership' is a commercial scheme that's purely run for profit.

But if this is Shared Ownership through a Housing Association, it's part of a government scheme to help people get onto the property ladder, who can't afford to buy a property in the normal way.


So being able to afford 5 years rent in advance isn't part of the government's eligibility criteria for the scheme.

The government have decided the profile of the people they want to help, and you don't seem to fit within that profile.

I don't think you know what you are talking about. None of what you say is correct and I don't understand why you are being judgemental. The government stipulation is that you can't afford a home outright and you earn less than 80k. the shred ownership company have their own private screening for the relationship they would hold with the buyer . The government does not tell them how to assess partner risk. 

Maybe the scheme was set up to support people living in the UK currently not those looking to move here?