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  • FIRST POST
    • Paolod
    • By Paolod 13th Apr 18, 1:21 PM
    • 3Posts
    • 3Thanks
    Paolod
    Shared Ownership
    • #1
    • 13th Apr 18, 1:21 PM
    Shared Ownership 13th Apr 18 at 1:21 PM
    Afternoon all,


    I have been looking in to shared ownership for myself and my partner (and 1 year old) as struggling to get together deposit.
    Our combined wage is more than the 80k cap however, but mine alone is not. Does anybody know if its possible or have any advice on how easy it would be to (if possible) to do it alone, when my partner will be living there.


    Thanks
Page 1
    • Cakeguts
    • By Cakeguts 13th Apr 18, 1:27 PM
    • 4,180 Posts
    • 5,910 Thanks
    Cakeguts
    • #2
    • 13th Apr 18, 1:27 PM
    • #2
    • 13th Apr 18, 1:27 PM
    How can you possibly be struggling to get together a deposit if you earn between you more than the 80k cap? The shared housing is there for people who don't earn very much not for people who can't save. People who earn a lot less than you can save for a deposit. The cap is there because it is assumed that people who earn what you earn can save for the deposit.

    Where are you living at the moment?
    • Paolod
    • By Paolod 13th Apr 18, 1:30 PM
    • 3 Posts
    • 3 Thanks
    Paolod
    • #3
    • 13th Apr 18, 1:30 PM
    • #3
    • 13th Apr 18, 1:30 PM
    Renting at the moment, trying to get to £20-30k needed for a deposit is difficult when you're paying over £1k a month rent, but thanks for the constructive response.
    • hazyjo
    • By hazyjo 13th Apr 18, 1:37 PM
    • 10,361 Posts
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    hazyjo
    • #4
    • 13th Apr 18, 1:37 PM
    • #4
    • 13th Apr 18, 1:37 PM
    So where's the other £3k-odd per month going?


    Can you not save a thousand or so a month with tightened belts?
    2018 wins: Single Malt Whisky; theatre tickets; festival tickets; year of gin(!); shoes
    • Cheeky_Monkey
    • By Cheeky_Monkey 13th Apr 18, 1:41 PM
    • 1,633 Posts
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    Cheeky_Monkey
    • #5
    • 13th Apr 18, 1:41 PM
    • #5
    • 13th Apr 18, 1:41 PM
    On a combined wage of more than £80k, you should have no trouble whatsoever saving for a deposit so you are obviously spending a lot of money on your lifestyle.

    Even your rent amount is not that high compared to your salaries.

    I suggest that you reduce your outgoings in order to save for a deposit and leave shared ownership properties to those who do not have the luxury of earning your level of salaries.
    I used to be indecisive - now I'm not so sure
    • Toucan_toucan
    • By Toucan_toucan 13th Apr 18, 1:50 PM
    • 16 Posts
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    Toucan_toucan
    • #6
    • 13th Apr 18, 1:50 PM
    • #6
    • 13th Apr 18, 1:50 PM
    To try to answer your question, I'd say this will be very difficult.


    If you apply as a single person, you may find you are not eligible for a 2-bed property (it depends on the demand for the homes), or you'll be given a lower priority than those who can demonstrate the need for 2 bedrooms.


    You'll have to convince not just the mortgage company but also the housing association that you, as a single person, can afford it on your income - and then not have your partner on the mortgage or tenancy.


    Have you costed the whole thing, based on just your salary? I.e. rent + mortgage + service charge? What is the ratio of your monthly pay to those outgoings? What about any debt you're servicing? Many housing associations will want to do a detailed financial assessment before you get anywhere close to applying for a mortgage - if they even suspect you can't afford it by yourself, they won't let you apply.
    • Cakeguts
    • By Cakeguts 13th Apr 18, 2:20 PM
    • 4,180 Posts
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    Cakeguts
    • #7
    • 13th Apr 18, 2:20 PM
    • #7
    • 13th Apr 18, 2:20 PM
    So you have just over£4.5k per month out of which you pay £1.5k in rent? That leaves £3k per month to pay for everything else. You have just under £700 per week after rent and just under £100 per day. Where is it all going?

    You have got to know this because you need to know if you can afford the mortgage and the saving for repairs. The problem with shared ownership is that you only own a percentage of the property but you are liable for 100% of the cost of the repairs so basically if you can't afford to save for a deposit you can't really afford to save for repairs so unless you change something about your lifestyle spending that allows you to save more money home ownership is going to be too expensive for your spending habits.
    • Paolod
    • By Paolod 13th Apr 18, 3:01 PM
    • 3 Posts
    • 3 Thanks
    Paolod
    • #8
    • 13th Apr 18, 3:01 PM
    • #8
    • 13th Apr 18, 3:01 PM
    A lot of assumptions about my lifestyle and lack of ability to save here.... Wasn't really the question, more surrounding the shared ownership scheme which I saw a way to try and get on the ladder and buy a family home.
    • Cakeguts
    • By Cakeguts 13th Apr 18, 3:11 PM
    • 4,180 Posts
    • 5,910 Thanks
    Cakeguts
    • #9
    • 13th Apr 18, 3:11 PM
    • #9
    • 13th Apr 18, 3:11 PM
    A lot of assumptions about my lifestyle and lack of ability to save here.... Wasn't really the question, more surrounding the shared ownership scheme which I saw a way to try and get on the ladder and buy a family home.
    Originally posted by Paolod
    Yes it is a way to buy a family home for people who don't earn enough to buy on the open market. That is why there is a cap. You don't fit the criteria because you earn too much to be offered shared housing so you do what everyone else who doesn't fit the criteria for shared housing do you buy non shared housing on the open market.

    You said in your OP that you were struggling to save for a deposit yet people who earn less than you and do fit the criteria for shared housing can save for a deposit. So the question is why can't you?
    • hazyjo
    • By hazyjo 13th Apr 18, 4:35 PM
    • 10,361 Posts
    • 13,425 Thanks
    hazyjo
    A lot of assumptions about my lifestyle and lack of ability to save here.... Wasn't really the question, more surrounding the shared ownership scheme which I saw a way to try and get on the ladder and buy a family home.
    Originally posted by Paolod
    Forums are made up of assumptions and generalisations unless posters provide more info. We're not psychic. You say you have £80k+ pa coming in, and a grand or so going out on rent. I think it's a more than fair (and obvious!) question to ask where the other £3k or so is going if we're to help or advise. I made no presumptions on your lifestyle.
    2018 wins: Single Malt Whisky; theatre tickets; festival tickets; year of gin(!); shoes
    • Shellbobs
    • By Shellbobs 15th Apr 18, 1:05 AM
    • 3 Posts
    • 0 Thanks
    Shellbobs
    Hiya,

    Unfortunatley there seems to be a selection of narrow minded keyboard warriors who are too quick to judge posting comments on this thread.

    Don!!!8217;t feel obliqued to respond back to these nasty comment, you DO NOT have to explain yourself or your personal circumstances to them. Had such types had the compassion/forsite to enquire about any specifics regarding say your location / family size / specific property needs etc. then perhaps they would not have been so quick to judge by their own assumptions.

    Personally & somewhat unfortunatley for me; I live/work in an area where the postcode costs due to the celebrity housewives/footballers associated with the areawhich means I am currently paying almost 40% of my salary just on rent alone. Not to mention the starting price of new build properties on any local developments:

    !!!55358;!!!56599;!!!55358;!!!56599;
    • mije1983
    • By mije1983 15th Apr 18, 1:42 AM
    • 2,896 Posts
    • 18,723 Thanks
    mije1983
    you DO NOT have to explain yourself or your personal circumstances to them.
    Originally posted by Shellbobs
    Totally correct. But then on the flip side the OP cannot stop people asking these questions if they post on an internet forum. I always say if you want people to agree with you ask your friends and family. If you want honest, and sometimes brutal, answers ask strangers. A lot of the time, although it may not seem like it, the latter are the most useful answers.


    Had such types had the compassion/forsite to enquire about any specifics regarding say your location / family size / specific property needs etc
    Originally posted by Shellbobs

    I'm not sure what location or property requirements have to do with anything currently. Whether the OP wants a 2 bed or a 5 bed, in London or in Newcastle, is rather immaterial as they have said they are over the cap. And they have already said they are looking for a property for 3 people so we can take it that is their family size.

    5 different posters have asked about specifics of where the rest of the income is going but the OP hasn't given that information back. That is their prerogative.

    However, saving for a house deposit usually involves sacrifices in lifestyle so if the OP could give some general answers then it would help people advise. I don't believe anyone is asking where the rest of the OP's income is going just to tear them apart, but to advise on how they could save for a deposit and get on the property ladder to get the family home the OP wants.

    • haras_nosirrah
    • By haras_nosirrah 15th Apr 18, 2:25 AM
    • 1,420 Posts
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    haras_nosirrah
    I have specialised in shared ownership for 10 yrs and am on the panel of some housing associations.

    If you aren't married you may be able to buy in one name and as you have a child you would still quality for up to 3 bedrooms.

    With the affordability you would be expected to maximise your affordability up to 75% of the property value. If you can afford more than 75% of the property value according to the hca calculator then you would be deemed too affordable.

    There may be an option on the open market. There is a lender who allows the borrowing of deposit as long as the repayments of the loan are factored into affordability. This may enable you to get on the open market.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Shellbobs
    • By Shellbobs 15th Apr 18, 5:40 AM
    • 3 Posts
    • 0 Thanks
    Shellbobs
    Shared Ownership
    Personal circumstances are totally relevant; why should finding yourself in need; albeit on the cusp of criteria make anyone less justified trying to find out how exactly it works. Yes some of the later posts do enquire/reply with sensible questions/comments however they most certainly do not excuse the following....no matter how you try & dress it up as being “in context”.

    • How can you possibly be struggling to get together a deposit if you earn between you more than the 80k cap? The shared housing is there for people who don't earn very much not for people who can't save. People who earn a lot less than you can save for a deposit. The cap is there because it is assumed that people who earn what you earn can save for the deposit.

    • So where's the other £3k-odd per month going?

    • I suggest that you reduce your outgoings in order to save for a deposit and leave shared ownership properties to those who do not have the luxury of earning your level of salaries.

    • Do what everyone else who doesn't fit the criteria for shared housing do you buy non shared housing on the open market. You said in your OP that you were struggling to save for a deposit yet people who earn less than you and do fit the criteria for shared housing can save for a deposit. So the question is why can't you?

    This is a page/forum which people have come to/posted on looking for help & advice; clearly because they find themselves in a financial/Housing related situation. Whatever their reason/need for posing the question; does it really deserve such sarcastic/arsey comments!!

    Does anyone seriously think that someone earning a salary of £40/45k does not have the intelligence to understand the logic ‘spend less = save more’.

    I’m pretty sure that of they wanted patronising advice they would have gone straigjt to their local estate agent/mortgage looking to buy on the open market!
    • mije1983
    • By mije1983 15th Apr 18, 12:31 PM
    • 2,896 Posts
    • 18,723 Thanks
    mije1983
    Does anyone seriously think that someone earning a salary of £40/45k does not have the intelligence to understand the logic 'spend less = save more'.
    Originally posted by Shellbobs
    Having a well paid job certainly does not equate to having good common sense!

    For example, I have a friend that is earning a lot more than I earn, and far far north of £40k, and is in a huge amount of debt. My debt consists of my mortgage and that's it. And it's precisely because they earn so much money that they are in debt. They know they are in a well paid job, so don't think they have to worry about money. They studied hard for their qualifications and worked their way up the ladder so you certainly could not doubt their intelligence, but their common sense is another matter!



    This is a page/forum which people have come to/posted on looking for help & advice; clearly because they find themselves in a financial/Housing related situation.
    Originally posted by Shellbobs

    And without disclosing where the other (at least) £3.5k is going every month, they won't be able to get it. Numerous posters have asked the question, and with an answer to it, then the OP may be able to get advice on how they can save for a deposit on the open market.

    But the OP has had an answer to their original question, so they may not come back with any additional information.
    Last edited by mije1983; 15-04-2018 at 12:33 PM.

    • Mermaid89
    • By Mermaid89 15th Apr 18, 12:48 PM
    • 48 Posts
    • 21 Thanks
    Mermaid89
    "For example, I have a friend that is earning a lot more than I earn, and far far north of £40k, and is in a huge amount of debt. My debt consists of my mortgage and that's it. And it's precisely because they earn so much money that they are in debt. They know they are in a well paid job, so don't think they have to worry about money. They studied hard for their qualifications and worked their way up the ladder so you certainly could not doubt their intelligence, but their common sense is another matter!"

    I work in insolvency and this is so true!
    • diggingdude
    • By diggingdude 17th Apr 18, 10:47 PM
    • 124 Posts
    • 115 Thanks
    diggingdude
    Having a well paid job certainly does not equate to having good common sense!

    For example, I have a friend that is earning a lot more than I earn, and far far north of £40k, and is in a huge amount of debt. My debt consists of my mortgage and that's it. And it's precisely because they earn so much money that they are in debt. They know they are in a well paid job, so don't think they have to worry about money. They studied hard for their qualifications and worked their way up the ladder so you certainly could not doubt their intelligence, but their common sense is another matter!
    Originally posted by mije1983

    Michael Winner said once, "you have to be very rich to be in as much debt as I am"
    House Deposit - Target £20000 April 2019
    Current Savings - £10225
    • the_quick
    • By the_quick 18th Apr 18, 12:49 PM
    • 47 Posts
    • 23 Thanks
    the_quick
    To answer main question for OP
    NO - the key to the shared ownership is "household earnings", so unless your partner is not living with, only other option is to lie that you live alone.
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