Shared Ownership

maka_2

Myself And My Partner Are Wanting To Get On The Property Ladder Only Problem Is I Earn £13500 P/a And She Is About £2000 P/a.
There Are Some Housing Being Built Near Our Area But They Are For This New Scheme Shared Ownership Has Anybody Done This Or Know If It Is Any Good?
Also Is My Wage Times By 3 Or 4?
We Dont Have Any Saving To Put Towards A Deposit Either.
All Help Would Be Great As We Live In A Rough Estate And Dont Want Our Son Being Brought Up On This Estate.

scheming_gypsy

i went shared ownership in December. Only problem i've had is that they tell you that you're eligable if you can complete within 6 weeks, then they fanny about for even longer.

Basically what happens is you buy x% of the house and rent the rest off them. My house was £128,000 and the offer was 60% / 40% with me buying for £73,800 and paying £50 a month rent on the rest.
The benefits of this are
a) it helps you get on the ladder
b) it's a lot cheaper to do
c) you get a brand new house
d) you can save on stamp duty.

After the first year you can buy more of the propery until you own it totally but the buy back value is on the new price not the price you paid. So if my house was now valued at 200k i'd have to pay 40% of that price instead of 40% of the 128k.

Some of the drawbacks are
a) it's a new house so you need to do everything, garden (including fences), flooring etc etc.
b) you can't sell for a year
c) when you do sell you have to try and sell it to somebody else who's eligable for the shared ownership scheme. If you can't after x amount of time trying then you can put it on the general market.
d) if you're still shared when you sell then the 40% is the same as when you're buying more of the house.

mummytofour

I have a shared ownership house and mine is a resale ie it was second hand (1970) it annoys me coz I have had to spend so much money of sorting the place out and have used profit money for this so now im left with less money to move on with.

My house is to small for my family BUT im stuck there and still cant move on after 6 yrs.

The valuation the HA do on the house is NOT the same as what an estate agent woulde sell the house out.


Im greatful i have a cheap roof over my head in a good area....


I would do it again if it was a new house:-)


so yes check out how much its going to cost you and if it is worth it, i would go for it!

scheming_gypsy

good point actually, my nextdoor neighbour got hers valued indepentantly when she bought hers and got it for 8k less than what they wanted.