Shared Ownership HELP!

caprikid1

"My outgoings are quite a bit - I can probably save around 400 to 500 pounds a month if I save aggressively,"

Managing to save £400 if you save aggressively on £80,000 sounds poor to be honest. Personally I would be looking at your budget and what savings you can make, it feels like your expenditure has grown to meet your salary.

How does your SOA compare with shared ownership vs your current situation, are you better or worse off. One of the ways of combatting the pitfalls of shared ownership is overpaying and staircasing, but there needs to be a real aggressive focus on it.

How old are you what is your likely salary growth in the next 5 years ?

i_like_cats

You can find 1-bed flats in “naice” London areas for a £450k budget.  

For example, here’s one in East Dulwich, close to Nunhead and Peckham.  A great area for young professionals.
It could be reconfigured as a 2-bed if it’s possible to move the kitchen into the huge lounge:

https://www.rightmove.co.uk/properties/155472770#/?channel=RES_BUY

Or this art deco flat with a riverfront communal garden in Chiswick:

https://www.rightmove.co.uk/properties/153062951#/?channel=RES_BUY

Or this in Hoxton - front and back gardens, but neighbours might be dodgy and you’d want to extend the lease:

https://www.rightmove.co.uk/properties/154236203#/?channel=RES_BUY

Or this by the canal in Old Street/Angel - though service charge is quite high:

https://www.rightmove.co.uk/properties/153934079#/?channel=RES_BUY

Kentish Town - small, ex-council, but nice bathroom and just £350k:

https://www.rightmove.co.uk/properties/153812300#/?channel=RES_BUY

Kentish Town again, an ex-council 2-bed for £435k:

https://www.rightmove.co.uk/properties/152303936#/?channel=RES_BUY

EssexHebridean

Remember that on top of that service charge you might also need to budget setting money aside ready for cyclical major works, unless there is some sort of sinking fund to cover these from within the ordinary SC.

The single biggest relief we have since selling our flat is no longer being held ransom by service charge demands. In the just over a year since we left, our former neighbours have seen nearly a 100% increase in their SC, with a further increase due from April 2025. On top of that, there are major works which were pushed back when covid struck, and which are undoubtedly going to be notified at some stage before too long - we were exceptionally lucky to only get hit by a single substantial major works charge in the 10 years we were there. (With that being a cost of £8k+, which was reduced to £5k following a lengthy dispute about the appalling quality of the works).  When the next lot come along, I'd imagine those will be in excess of £10k per flat as they are likely to include a full new roof. 

MoodyFirstTimeBuyer

caprikid1 said:

"My outgoings are quite a bit - I can probably save around 400 to 500 pounds a month if I save aggressively,"

Managing to save £400 if you save aggressively on £80,000 sounds poor to be honest. Personally I would be looking at your budget and what savings you can make, it feels like your expenditure has grown to meet your salary.

How does your SOA compare with shared ownership vs your current situation, are you better or worse off. One of the ways of combatting the pitfalls of shared ownership is overpaying and staircasing, but there needs to be a real aggressive focus on it.

How old are you what is your likely salary growth in the next 5 years ?

I suspect you are right. I will certainly look at my outgoings, but right now getting to 1k saving or near to that a month is hard unless I forgo any form of social life.

Im currently 30 and I reckon I could easily go to 100-120k by year 5. 

I’m single currently but it does seem that buying is very much geared to couples where a joint salary can really boost what the bank lend. 

i_like_cats

MoodyFirstTimeBuyer said:

caprikid1 said:

"My outgoings are quite a bit - I can probably save around 400 to 500 pounds a month if I save aggressively,"

Managing to save £400 if you save aggressively on £80,000 sounds poor to be honest. Personally I would be looking at your budget and what savings you can make, it feels like your expenditure has grown to meet your salary.

How does your SOA compare with shared ownership vs your current situation, are you better or worse off. One of the ways of combatting the pitfalls of shared ownership is overpaying and staircasing, but there needs to be a real aggressive focus on it.

How old are you what is your likely salary growth in the next 5 years ?

I suspect you are right. I will certainly look at my outgoings, but right now getting to 1k saving or near to that a month is hard unless I forgo any form of social life.

Im currently 30 and I reckon I could easily go to 100-120k by year 5. 

I’m single currently but it does seem that buying is very much geared to couples where a joint salary can really boost what the bank lend. 

Any thoughts on the flats I suggested?

If they’re not what you’re looking for, what are they lacking?

They’d be in budget for you now. 

caprikid1

"I’m single currently but it does seem that buying is very much geared to couples where a joint salary can really boost what the bank lend. "

Always been the case but it also means that your housing becomes tied to your relationship. When the relationship ends you become effectively homeless with all the associated transaction costs. Now is the time to buy.

Scale back your expenditure and your budget and buy the best you can afford as full ownership. I live in the cotswolds and that budget buys you a dream cottage in a beautiful village, I know that's no good for you but if you cannot afford to buy in the area you want without shared ownership then look elsewhere or buy somewhere smaller. So many people regret shared ownership, buying a house is ALWAYS about compromise.

With shared ownership you will be paying rent and not get all of the property value increase either, Shared Ownership is really aimed at people who don't have a choice IE Shared Ownership or rent.

I've lived in London twice so and owned a three bed house in East London, the plan was always to make some money and move out, I did so after about 5 years rented it for a while then sold it.