Shared Ownership, Where to start?

siliconbits

I've been trying to read through the 100's of threads on sharedownership and pages available through Google about Sharedownership but haven't been able to find out exactly why someone should go for it, especially as a FTB.

Fundamentally, doesn't still mean that your outgoings would be more than if you owned had a traditional mortgage AND you would still find yourself in a worst position than if you rent and tried to save at the same time?

Can anyone indicate a good place to start reading on Shared Ownership and what are the pitfalls to avoid? Perhaps martin could include a special chapter dedicated to SO in his book/

Thanks every1.

siliconbits

Thanks for helping out...

Bargain_Rzl

siliconbits - do a search for my posts on the subject. I have posted a number of times about how my costs work out, and in my case it most certainly is not more expensive than a "normal" mortgage - in fact it is considerably cheaper than either owning outright or renting. However, this is all obviously in relation to my own circumstances and the market conditions in my area, and cannot be applied equally to everyone.

The only thing I would add to what I have posted previously is please ignore the things I have said about how stamp duty is applied to SO purchases - the Chancellor changed the rules in the recent Budget so you now don't have to pay stamp duty until you own 80% of the property (I think - I'm sure Richard Webster will correct me if I've got it wrong).

Richard_Webster

The only thing I would add to what I have posted previously is please ignore the things I have said about how stamp duty is applied to SO purchases - the Chancellor changed the rules in the recent Budget so you now don't have to pay stamp duty until you own 80% of the property (I think - I'm sure Richard Webster will correct me if I've got it wrong).

No, you are not wrong - assuming that the original percentage share was sold for less than the SDLT threshold - either £125K or £150K in "disadvantaged areas".

The point, much canvassed and explained in various posts involving Bargain Rzl, was that before the budget, because of a technicality, SDLT was payable at 1% on purchases below what would otherwise been the threshold so a 50% share worth £90,000 would have been liable for £900 SDLT. The technicality has been removed so now you only pay when over £125K/£150K.