Shared ownership with Cheshire mortgages?

One_Fine_Day_2

My mortgage broker is suggesting this as a viable option.

However, Cheshire's own website states that shared ownership mortgages are for the North West only:

http://www.thecheshire.co.uk/online-mortgage-home-loan/first-time-buyer/sharing-your-purchase.htm

and we live in the North East...

Whichever computer programme the mortgage broker uses to find the best deals has come up with this and she's obviously unable to query it until Monday. Just wondered whether anyone knows if it's likely to be a go-er or not.

Thanks in advance.

november78

Please think long and hard before buying a shared ownership.

Is the other half with the council or the housing association?

Please have a look at my thread i posted, called shared ownership properties....

Make sure you really look at the lease from the council/housing association and make sure you are happy with it, because i'm trying to sell mine and now can't because lenders have changed their policies. My house is now unmortgageable.

Just have a look at my thread.

I'm not telling you not to go for it, but look into it in a bit more depth first.

ruggedtoast

I wouldnt go near SO schemes with a pole. They exist for one reason and one reason only, to ensure that housebuilders keep receiving sums for FTB properties that FTBs cannot afford to pay by having the taxpayer stump up the other "half". If they didnt exist the properties would just be marketed at a lower price.

lucasmum

I would have to disagree with ruggedtoast. We are in the process of buying a shared ownership house. Other half being owned by a HA. When we had the place valued by Halifax they valued it at £20,000 more than the HA did, this now gives us what Halifax see's as an extra £7,000 equity in our share.
I don't know how things have changed recently but it is not only one lender for SO, we are going with Halifax and have a 2 yr tracker +0.79 above the BoE rate, which I think is pretty reasonable. Also Nationwide, Abby and I'm sure more. If you're not sure about the brokers choice have another look around.
Good Luck

UK007BullDog

Sorry, but SO are a pain in the backside when you want to remortgage, sell or buy more shares. They are a con and the surveyor you were lucky to have must have been asleep as most new builds are being down valued at this time.

If you buy a SO make sure you go in for the long haul and choose a long rate like a 5 year fix. Not all lenders lend, depends on builder, build, location/area.

One_Fine_Day_2

Thanks everyone for your words of advice, it is all appreciated.

We've looked long and hard at the ins and outs of shared ownership (and this property in particular) and are confident that we're getting a good deal.

Any clues as to whether the Cheshire option is open outside of the North West?

Dan_Collins_2

You gotta do what you gotta do!

I think they can be a good idea if you do it write and you are able to buy 100% in the end.

Go for it, but check the lease and that the rent part does not blow your budget!

Mac_Sami

UK007BullDog wrote: »

Sorry, but SO are a pain in the backside when you want to remortgage, sell or buy more shares. They are a con and the surveyor you were lucky to have must have been asleep as most new builds are being down valued at this time.

Illustrations and examples, please.

I'd say that's quite a libellious statement to go around making, unless you can back it up. Or is it the SO purchases you've heard of involve naive purchasers and not very good solicitors who fail to ensure there is a watertight lease and contract to cover these situations?