Shared Ownership - Affordability Calculator

ZackyD

Hi,

We are currently looking at shared ownership, however my long term partner took out an IVA in 2021 - so the mortgage is just going to be in my name - its a low multiplier as well.

When it comes to the government calculator after inputting all my data it comes out with a 48% percentage score which falls between the 45-50% guidelines I believe.

However in the guide notes it mentions other eligible household members who meet the criteria (which my partner does) you can use up to a 1/3 of their income in the calculation - has anyone encountered this before? do you think the Housing Association would allow my partner on the tenancy? using this would bring my % score down to 35% and therefore a bit more flexibility

We have been renting privately on a joint tenancy for the last 4 years without a problem.

I cannot find much out online about this and I cant get a straight answer out of the HA either

Any help/guidance would be greatly appreciated 

housebuyer143

It seems unlikely you will be able to use her income for shared ownership but then omit her from the ownership. I'm not certain, but it seems a strange thing to allow. 
It's almost like agreeing to a mortgage on two incomes but only putting one person on the title deeds. 
Can't hurt to ask them though.

BarelySentientAI

housebuyer143 said:

It's almost like agreeing to a mortgage on two incomes but only putting one person on the title deeds. 

Which you can, strangely, do - Joint borrower sole proprietor.

ZackyD

Hi Guys thank you for the feedback- just to confirm the mortgage will only be in my
name - so do you think if I omit my partner from the government affordability application the HA would or wouldn’t allow her to be on the tenancy ? As I said I can’t find a definitive answer anywhere - even from them! 😬

ZackyD

The mortgage doesn’t seem to be an issue - it’s the shared ownership affordability formula which is tight - especially with high interest rates at the min - I was a bit confused over the “other income” part - and what it covers 

kingstreet

There is no tenancy created. It's a leasehold purchase. The purchasers and borrowers must match so your partner can't be included in one without being in the other.

Homes England does permit part of a non-owner occupier's income to be used on the SO calculator but it can't be used for the mortgage affordability calculations and IIRC JBSP isn't an option on SO.

ZackyD

Thanks Kingstreet - that is what I thought - my partner is not named on the mortgage but it was more for the SO calculator where it mentioned up to a 1/3 can be included if they are eligible 😊

This isn’t an easy process in the current light 😬