Shared Ownership

EmmaLi

As we live in a very expensive area, my OH and I are looking at a shared ownership scheme to get onto the property ladder.

Has anyone else here done this or know anyone who has? If so, what are the benefits and pitfalls?

Thanks

loveboat1234

Hi...I hope that this will help.

I have purchased a shared ownership place 1 year ago and could say that it all depends on your needs and circumstances as for me the following applies:

* didn't / could no get more than 100.000 in borrowing and I live in london so a shared own. at 50/50 cost me 70.000 on a 140.000 proprety ( these are just figures **)

**if I lost my job I could claim housing benefits as I pay rent on the 50% owned by the Company

*** rent is reasonalbe low ( currently stands at £232 ) and I can say that the total is about £680 for mortage and rent + bills ,

**** problems are that cost and rent increase every year ( at the beginning I paid £179 ) and you have little control on the maintenance cost and plans.

***** reselling would be easier as you asking price is only 50% ( or your stake) ....

****** any loss or gain in the proprety is shared with the company

So ...do your sums and see where you stand best with your money and your deposit and your rent .....add a 10% cost on the rent and maintenance every year and read through the conditions ( mine states that if I am considering re selling then I will have to do it via the Company I bought from for a period of 3 months at the price set by an independent survey ) if the place is not sold within this period then I can go open market ( at their price + £1000 fees ) but I am sure this is common practive

( if you can consider renting for the next 6 months , as things are not very clear at the moment where house prices are going and interested rate either. Next door they bought a share of 60% for something like £117.000 and now it is only worth £108.000 as prices in the SW london area have dropped . At the end renting would cost the same as mortgage + shared rent . This in IMHO. Let me know if you need more ....