Shared ownership is this the best move.

itsthelittlethings

Shared ownership has been good for me. It has given me the stability I needed and space. I have much better quality accommodation than in private rental (but could be paying more if I had a mortgage and rented), probably less than rent for a similar property in private sector. I would agree that it’s difficult to move. I would agree that you have to pay for repairs. If your wife can go back to work could you afford full ownership?

simon_grimshaw

She cant work full time
as av no childcare. I work long hours and we only have the 1 car. 
Honestly my gutt  says dont buy a house
the payments are just to crazy and im 40 now.

simon_grimshaw

Another thing whats on my mind is i feel fortunate to have the wage im on and if i ever
 got made redundant i will never get a job remotely close to the wage i get.

marcia_

simon_grimshaw said:

Another thing whats on my mind is i feel fortunate to have the wage im on and if i ever
 got made redundant i will never get a job remotely close to the wage i get.

 Do you have any valid reason to believe that might happen? 

simon_grimshaw

No not really but you just never know
Maybe im overthinking.

Just looked at the payments for both options.
Buy a small house that would be round 1500 month. Plus i would lose 450 UC

or 25% stake on 4 bed house that be 1150.
And dont lose any UC

Newbie_John

I have no idea how UC works, but if you pay £1500 rent and would pay £1500 mortgage - then that's pretty the same? With £1500 paid towards rent you lose £1500 really, with £1500 paid to mortgage - you pay roughly £500 interests and £1000 stays with you as part of the house. Also if interest rates will go down this price will go down too.. and unlike rent - it's exactly what you will pay for 30 years - renting would likely double in that time.
Sure it's scary to lock in such a long time but remember that you can sell before the 30 years period.

You mention £450 UC going away though - how's that possible? 

Shared ownership, I don't like that option - for me it brings worst of both, you take all the problems of owning a house on you - maintenance and still pay rent which can go up every year up to 2% + RPI (which last year was 6%).

Emmia

Newbie_John said:

I have no idea how UC works, but if you pay £1500 rent and would pay £1500 mortgage - then that's pretty the same? With £1500 paid towards rent you lose £1500 really, with £1500 paid to mortgage - you pay roughly £500 interests and £1000 stays with you as part of the house. Also if interest rates will go down this price will go down too.. and unlike rent - it's exactly what you will pay for 30 years - renting would likely double in that time.
Sure it's scary to lock in such a long time but remember that you can sell before the 30 years period.

You mention £450 UC going away though - how's that possible? 

Shared ownership, I don't like that option - for me it brings worst of both, you take all the problems of owning a house on you - maintenance and still pay rent which can go up every year up to 2% + RPI (which last year was 6%).

I think UC can be used to cover rent (including SO rent) but not mortgage payments.

itsthelittlethings

Do you want to get stuck on UC for ever?

simon_grimshaw

Basically you lose the housing benefit off UC.
The rent gets covered in shared ownership 
even if increases.
The thing is i cant afford a house of decent size and area with a family 5.

i know absolutely buying a  house is better overall.
But am struggling to see it here.

_Penny_Dreadful

simon_grimshaw said:

Basically you lose the housing benefit off UC.
The rent gets covered in shared ownership 
even if increases.
The thing is i cant afford a house of decent size and area with a family 5.

i know absolutely buying a  house is better overall.
But am struggling to see it here.

Shared Ownership can work but like with all home buying schemes you need an exit strategy.

Would you eventually staircase to 100% or would you keep your share at 25%?

Have you checked the family will be entitled to the same amount of universal credit if you purchase a shared ownership property?  

What happens when the children are older and the amount of universal credit reduces or a future government decides to muck around with benefits again?

What is your plan for retirement?  How would you cover the rent?

What do you consider a decent sized home for a family of 5? Most of us compromise on our first and even second and third homes based on budget, size and location.