Is Shared Ownership my best option?

Claire1994

Hi all, I’m considering shared ownership for my next home and would really appreciate your advice. Here’s my situation and why I think it might work for me—please let me know if you agree or if I’ve overlooked anything:

1. Smaller mortgage after financial setbacks
   After a difficult separation and experiencing d******* a****, I had to leave my previous home long before it was sold. Unfortunately, this meant my mortgage fell into arrears. The house has now sold, leaving me with £25k+ in equity, but my credit score has likely taken a hit. With shared ownership, I could borrow less while still finding a home that suits my needs in terms of space and location.

2. Safe area for evening dog walks
   I have two dogs, and their walks often happen after dark due to work. A safe area is essential, but I’d like to achieve this without overspending.

3. Neighbour considerations (no flats or terraces)
   My dogs are reactive—they’re my little burglar alarms! While that’s fine for me, it means flats or terraces are unsuitable, as the noise might frustrate neighbours.

4. Low-maintenance property
   I’m not great at DIY beyond decorating, so I’d struggle to buy somewhere needing major work. Shared ownership properties tend to be newer, with minimal upkeep, and any issues may even be under warranty. This seems like a big plus for me.

5. Ability to save for emergencies
   As I’m financially independent, I need to ensure I can save for emergencies like redundancy or vet bills. I’m hoping shared ownership could help me keep monthly costs down so I can build up some savings—though I’m less certain about this part and would love input.

Key details: I earn £42k annually, and I’m planning to buy next year in northwest UK. Does shared ownership seem like the best route for me? Or are there other options I should explore?

Thanks so much for your help! 😊

Sawrus

Hi Claire,

I am no expert and this is only my observation, but if you go for a share ownership you'll be paying rent and have a mortgage as well (as I said no expert but that's what I believe is the situation as I've been told)  Also as I read your thread you possibly don't know the area?? ( "I'm planning to buy next year in Northwest UK") would it not be an idea to rent to look at different areas (If that is the case - or if you know the area just ignore that bit     Maybe get on the local area website/FB and have a 'chat' there are still some nice and help people out there
A house/flat is a huge investment and you've also got to think about when you get into your senior years (Will there be a government pension by then - who knows) And as you said money for emergencies. So you also have to take that into consideration.
In my many years of homes (senior person) new homes aren't always well built its the luck of the draw sometimes. 
Sorry if this is absolutely no help whatsoever but just thought I would put a few thoughts down  

Claire1994

Hi Sawrus,

Thanks for taking the time to share your thoughts—it's genuinely helpful to hear different perspectives!

From my understanding, with shared ownership, you pay a mortgage on the share you own and rent on the share you don’t. Whether that works out better or worse than just paying a full mortgage depends on individual circumstances. For me, it seems like it could make buying more achievable given my situation, but I need to dig deeper into the numbers.

I already live in the Northwest (sorry, I mentioned it for context since prices here are a bit more manageable compared to places like London). I’m familiar with the general area, but I agree it’s important to research specific neighbourhoods—I’ll definitely explore local groups and forums for advice too.

I’ve also heard some horror stories about new builds, which does give me pause. But at the same time, I know I’m not great at DIY, so I’d need to find a balance. I’m hoping a newer property might help reduce the risk of big issues I’d struggle to fix myself.

You’re absolutely right that property is a huge investment. I think I’d personally be okay with just paying off the share I own and continuing to rent the remaining share, rather than staircasing (buying more of the property). Whether that’s smart or not probably depends on how the rent works out in the long term—so it’s something I’ll need to weigh up carefully.

Your comment has been really helpful because I need real-life perspectives to make an informed decision. I’ve read about the ins and outs of shared ownership, but there’s so much I haven’t found about the day-to-day reality of it. So thank you again for sharing your thoughts! 😊

Sawrus

Aww thanks Claire, its nice to know sometimes oldies options do count 
I think its more important to think of the future of senior years now with the way things are going and if I had my younger time again I think I would have done more to secure the future. But hindsight is a wonderful thing 

twopenny

I'd go for my own place every time.

Freedom to do what you like, no discussion, negotiation, security because you never know what the other party will do. And sharing with dogs is going to be an issue at some point.

Look round areas while you're walking the dogs. It's a great way to be nosey with no one getting suspicious.

I found my current spot by accident while wandering, many don't know it's there. Quiet, nice neighbours. It's much smaller than I wanted but has everything else.

Location is important. Mine while tiny was left unlived in for years but in a highly desirable spot, not expensive but wanted.

I needed to decorate, tidy up woodwork and such and put in a garden. I'm sure you could manage that. The DIY forum is really helpful if you need it. So now it's saleable at a lot more than some because of the location for a bit more than the average.

Furnishings and nice ones, can be found in charity shops as you start. Paint furniture (and not with Farrow and Ball ;-) Clean and polish something lovely but neglected.

Get out there with  the dogs and explore.

housebuyer143

Just to add, shared ownership that are built by the housing association tend to be really well built and dare I say, not boxes, because in general they have high efficiency standards and the HA don't want to be doing repairs. My sister bought one 2 years ago and it's so well Insulated it sits at 21 degrees with no heating on and it has solar panels on the roof that she can use for free electric. It's a really well made house which isn't what you think when you hear "new build". 

She doesn't regret it at all, because the most the bank would lend her is £120k and in the south west that's not even a flat. 
Remember that the rent goes up every year and you have to pay 100% of the repairs, but should you lose your job, the UC will pay the rent part of your bills, which is a plus. 

Claire1994

Aww, thank you, Sawrus! 😊 Your insights are definitely valuable—sometimes experience gives a perspective that’s easy to overlook when you're in the middle of making decisions.

I completely agree that thinking about the future is so important, especially with how uncertain things can feel nowadays. It’s something I’m trying to balance with my current situation—I want to make a decision that’s sensible both now and in the long term. Hindsight really is a wonderful thing, though—I’m sure we all have moments where we wish we’d done things differently! ❤️

Thanks again for taking the time to share your thoughts—it’s really appreciated!

Claire1994

Hi Twopenny - I love this idea! I’ll definitely start being more mindful of houses for sale while walking my boys—and I’ll make an effort to explore further afield too. It’s such a good way to get a feel for an area.

I’m also a big fan of upcycling furniture, so that’s a fantastic suggestion. Most of what I have is second-hand, and I love the character it brings. Plus, it’s so satisfying to make something unique!

You’ve made me realise I might need to be a bit braver and not rule out buying my own place entirely. I am nervous about taking on more than I can handle, but if I bring family along to viewings, I'm sure they’d help me figure out what’s realistic.

Thank you so much for your advice—it’s really helpful and has got me excited to start this journey properly! 😊

teaselMay

Hi Claire, In different circumstances I'm also looking at shared ownership at the moment, in the Northwest too by coincidence.

I can't answer your other questions but on the dog front for me a shared ownership house seems a very good thing compared to my alternative of private rental. However of the shared ownership options that I've seen in the NorthWest almost all are new housing estates of at least semi detached houses, and effectively back to back terraced gardens. We live in an ex council terrace on the edge of an estate now and so I know how my dogs will handle that and how disruptive they might be, and they'll be ok, but for my most nervous lad especially it will be a stressful time whilst he figures out the local sights sounds and smells.

On the positives on the dog front: Most of the options that I've seen are on the edge of towns and big villages, rather than centrally. Most have a high fenced garden (deal breaker without for me). Most have open space around or nearby

The shared ownership assessment does ask about adverse credit, and you do obviously still need to be accepted for a mortgage.

The ideal of a doer upper in the sticks sadly doesn't come on shared ownership. 

RAS

You really need to start by talking to a mortgage advisor about when your financial record is going to allow you to get a mortgage at a reasonable rate?

Wrecking your credit record is often part of the ex's plans to adversely affect you beyond the break-up. So you need to know the score and plan accordingly. It may mean working on savings short-term rather than buying in the same time scale. 

Claire1994

Hi Housebuyer143, I’m so glad to hear about a positive experience with a new-build shared ownership! I know people who’ve bought new builds (not shared ownership), and they’ve had their fair share of problems, so it’s encouraging to hear about a well-built home like your sister’s.

I don’t know yet what the bank will allow me to borrow, but I can imagine being offered a similar figure to your sister.

I didn’t realise that UC could cover the rent portion if I ever lost my job—that’s definitely a huge plus and gives me some peace of mind. Do you know how the rent is calculated or how it compares to rent from a more traditional landlord? I’m planning to visit at least one show home and ask about monthly costs, so I can get a clearer picture of what to expect.

Thank you for sharing—it’s really useful and has given me some great insights! 😊