Shared Ownership Mortgages - advice !

liz105

Not all SO schemes are 'tax payers money as you put it. Some are private. Some are private companies. I own 75% of my flat. And unlike many others I DONT pay rent on the last 25%, its held in trust, I dont have to buy it. Essentially, I bought a very nice flat with 25% off. Flats in the same block and identical blocks in the same area are selling, and to date have made approx 30% for their owners in two years. I am aware of the market, but these were not overvalued at the time of purchase, and unless the market falls 30% in the next few months we stand to make a tidy profit from here too.

Please take your scare-mongering elsewhere. SO works very nicely if you know how.

ruggedtoast

liz105 wrote: »

. Essentially, I bought a very nice flat with 25% off.

No. You really didn't.

Part of what worries me about SO schemes is how poorly understood they are by the people who buy into them. The risks are in no way transparent and they've historically relied on a rapidly rising market to keep going.

liz105

in that case, please enlighten me. we own a percentage, not an amount, so as the whole property goes up, so does our percentage. Also, we decide how much the property is put up for sale for, not the company who own the 25%.

I fail to see why you think SO is such a bad thing.

willsonline

How about some positive points regarding SO???

1. First Time Buyers get a brand new flat/house, with NHBC guarantee, a by-product is minimal maintenance costs...

2. They can increase IF THEY WANT TO, their stake in the property.

3. They have some equity which will either rise or fall, (but as most people know property is the best place to invest in the long term).

And flats being hard to shift? Dont be silly. A well kept flat will have no problem as this is usually the first port of call with single, first time buyers.

The only issue i have with some of the schemes is that many, although not all are slightly over-priced. In my opinion.

I hope to go down the shared-ownership route in a few months, it may not be the perfect solution but its the only way for me to get on the housing ladder.

There is no other way, i dont intend to sell soon either so will be there in the long-term. Nothing wrong with this.

I just want my own place, but will wait a few months to see how the market reacts to the current conditions.