Help please, first time buyer looking at Shared Ownership

YS_UK

Hi All,

First of all, apologized if this topic have been covered on other thread, I tried the search but couldn't find any answer.

I am a first time buyer and I am interested in a property available from the housing association on the Shared Ownership (Part buy part rent) scheme.

I would like to know with property on this scheme, do I offer the property at a price I wish to pay or I HAVE to go with the value of the property as they published?

Thanks!
YS

cathymac_2

Hi,

I recently bought a house in a shared ownership scheme.

I don't know if all schemes are the same but in my case the offer system was exactly the same as if I was buying a house that wasn't shared ownership. Basically you put in your offer and the owners will either accept or refuse it.

The value of my house was made by a local estate agent and then agreed by by the housing association.

Hope that helps.

YS_UK

Thanks for your input! :cheesy:

I found it intimidating when I have zero knowledge on how to go about this:huh:

cathymac_2

No problem.

It's just the same as usual buying in as much as you can negotiate with the vendor. Once an offer has been agreed the vendor will let the housing association know your details and you will then need to fill out an application form for them. They do credit checks etc and want the deatils of your mortgage.

One thing I would suggest is that you find a solicitor who has experience of shared ownership conveyancing as there can be a few little ood bits on the lease etc that someone who is experienced can navigate their way through without too much difficulty.

Shared ownership is great and I have a house that under other circumstances I would not be able to afford. It's definately the way to go!

Richard_Webster

It is safer not to buy a brand new property because they tend to be overpriced and therefore your 50% (or whatever) share will be overpriced.

YS_UK

I understand the advise on avoiding the new build as they are overpriced.

This is why I am not sure can I offer a lower price on the value they said the property is worth.

The property I am interested in is a new build, does it mean I am not in a good position to offer something lower than their asking price?

The value of the property for shared ownership is lower than the open market ones, the same property on the same site on the open market are at least 50K higher than the asking price for the shared ownership one.

So, the offer I give on the property is agreed with the vendor right? So if Barratt Homes build the block of flat and some of the units are sold through SO, Barratt Homes may not take my offer at a lower price, thus nothing to do with the housing association?

The role of the housing association is to give the shortfall I couldn't afford to Barratt Homes?

Sorry I have a lot of questions...and I could be asking something in the loop. Just want to understand more.

gabyjane

Hi we have been on a S/O list for 7 years and awaiting a new build..we finally moved in last sept! We were told the price and tbh as their is a huge waiting list for them in our town we just took it. Like you said ours was far far cheaper than market value ones put up for sale and we would never have afforded them and still couldn't.
The whole development has been sold and if we had faffed making offers etc we would have lost it..it is different here for properties who have people already in them as opposed to new builds..good luck.

gabyjane

Richard_Webster wrote: »

It is safer not to buy a brand new property because they tend to be overpriced and therefore your 50% (or whatever) share will be overpriced.

Just to say our house was £153k S/O
The exact same house but through the estate agents and turns out to be smaller rooms etc= £169k+ most sold for in the region of £180k.

We would never have got a mortgage for £160k but we did for £61k which is our % of our house..and for the same house..just we don't own all of it as such! but we are far better off money wise because of it!

CYBERCIDERSAVER

Two add my two pennies worth....

The housing association should be able to provide you with details of solicitors they have dealt with before.
It's also a good idea to have a local solicitor. Gives you the opportunity to ferry documents/information between solicitors (to help speed up the ridiculously slow process)

The mortgage co. asked our broker to ask us to ask the housing association wht the 100% value was (they had confirmation from the HA that the 50% value was 75 000!! All a bit pedantic but there you go.

YS_UK

gabyjane wrote: »

Hi we have been on a S/O list for 7 years and awaiting a new build..we finally moved in last sept! We were told the price and tbh as their is a huge waiting list for them in our town we just took it. Like you said ours was far far cheaper than market value ones put up for sale and we would never have afforded them and still couldn't.
The whole development has been sold and if we had faffed making offers etc we would have lost it..it is different here for properties who have people already in them as opposed to new builds..good luck.

Thanks for sharing. I was discussing exactly the same thing with my fiance, we are worried if we mess around with the offer, we may lost it to others potential buyers.

YS_UK

CYBERCIDERSAVER wrote: »

Two add my two pennies worth....

The housing association should be able to provide you with details of solicitors they have dealt with before.
It's also a good idea to have a local solicitor. Gives you the opportunity to ferry documents/information between solicitors (to help speed up the ridiculously slow process)

The mortgage co. asked our broker to ask us to ask the housing association wht the 100% value was (they had confirmation from the HA that the 50% value was 75 000!! All a bit pedantic but there you go.

Sorry, I have more questions did you have two solicitors?

Did you have your own independent financial advisor to sought a mortgage deal for you? My friend who bought his first property (not a SO, he bought it from the open market) told me it's best to get myself an IFA.

What do you guys think?