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Secure tenancy or shared ownership?

Catgirl4
Catgirl4 Posts: 3 Newbie
Name Dropper First Post
in House buying, renting & selling

Hi,

I have the opportunity to apply for a shared ownership on a new build. £20,000 for a 10% share. I am currently living in a housing association property which is a secure tenancy, and I have the right to acquire. Am I best off staying where I am? I am 37, two children (15 and 2), in a relationship but not married. Household income about £60,000 before tax, if this info is relevant. My tenancy is in my sole name.

TIA for any advice.

Comments

  • itsthelittlethings
    itsthelittlethings Posts: 2,322 Forumite
    1,000 Posts Second Anniversary Photogenic Name Dropper

    How much is the rent and service charge on the shared ownership vs what you're paying now?

  • Catgirl4
    Catgirl4 Posts: 3 Newbie
    Name Dropper First Post
    https://forums.moneysavingexpert.com/discussion/comment/81973568#Comment_81973568

    I currently pay just over £500 for rent/service charge. It would work out about £100 more for the SO, depending on mortgage rates.

  • itsthelittlethings
    itsthelittlethings Posts: 2,322 Forumite
    1,000 Posts Second Anniversary Photogenic Name Dropper

    Which is the nicer property/ area. I'm in shared ownership flat but it's part of an HA/ council block so it's not really better.

  • itsthelittlethings
    itsthelittlethings Posts: 2,322 Forumite
    1,000 Posts Second Anniversary Photogenic Name Dropper

    You would presumably have the option to buy more than a 10% share, or to staircase.

  • Catgirl4
    Catgirl4 Posts: 3 Newbie
    Name Dropper First Post

    Yes, I could buy more/staircase. The house is nicer, because it's new. The area is probably on par with what I have now. House slightly bigger, but not by much. It has off-road parking, which I don't have now. Air source heat and solar panels, and comes with a car charging port. It's just such a hard decision. Obviously with the SO, I would be responsible for all repair costs. But I would be on the property ladder.

  • itsthelittlethings
    itsthelittlethings Posts: 2,322 Forumite
    1,000 Posts Second Anniversary Photogenic Name Dropper
    https://forums.moneysavingexpert.com/discussion/comment/81973787#Comment_81973787

    You never really need to get on the property ladder with a secure tenancy though. And yes, repair costs.

  • ResourcesShared
    ResourcesShared Posts: 18 Organisation Representative
    Fourth Anniversary 10 Posts Name Dropper Photogenic

    As a matter of interest, what benefits are you hoping for from being on the ladder with a 10% share? Are you hoping to climb the ladder by staircasing? Or transition to full home ownership via a gain on sale. Whatever your intentions, do you have a plan to achieve it? Marketing ads often focus on Year-1 costs and benefits but it's worth looking further ahead.

    It's often suggested that satisfaction is higher with SO houses than flats. But make sure to check if the propertyis subject to estate service charges (different to service charges - see the link to a Shared Ownership Resources feature below). You can also find independent info on shared ownership on sites such as the HomeOwners Alliance.

    Good luck whatever you decide to do!

    https://www.sharedownershipresources.org/an-expert-on/estate-service-charges/

    Founder of Shared Ownership Resources
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