I see shared ownership not worth getting if you plan to sell within 5 years, the extra fees related to the sale are unlikely to be worth it. But yeah same here, I would never be able to to buy outright without shared ownership and probably still be flat sharing with a bunch of weirdos and mice.
Any downsides of part ownership mortages?
- Thread starter mushtafa
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Soldato
I guess it depends on the property, but I have a friend who bought via shared ownership and they recently moved into their next property which is owned by them outright (well deposit, plus bank mortgage).
So it absolutely is an option to get onto the ladder. I do recall them telling me about their neighbour who also had shared ownership, but they had increased their share over time but that meant he struggled to sell because potential buyers had to stump up a bigger deposit/mortgage combo to buy his flat. Something to be mindful of if you do go down the shared ownership route.
So it absolutely is an option to get onto the ladder. I do recall them telling me about their neighbour who also had shared ownership, but they had increased their share over time but that meant he struggled to sell because potential buyers had to stump up a bigger deposit/mortgage combo to buy his flat. Something to be mindful of if you do go down the shared ownership route.
Soldato
Its called not being able to get a decent mortgage, could like 100k, which wont get me far with shared ownership, not around where i am, unless you want to live in a high crime low poverty area.... no thanks
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Move.
Yeah, I know, that doesn't sound very sympathetic, but some folks do just live in areas where they haven't got a hope of buying outright, so you either rent forever, while house prices continue to rise, or you do something like this, which I have no experience of, but I'd have several concerns, similar to the "jointly and severally" condition attached to joint mortgages - what happens if one party fails to pay their share? Are you protected in some way?
Or you can go somewhere where you *can* afford to buy. You're not "owed" an affordable house just where you want it, but chances are you *can* afford to buy elsewhere. It may be the simplest option when's all said and done.
Yeah, I know, that doesn't sound very sympathetic, but some folks do just live in areas where they haven't got a hope of buying outright, so you either rent forever, while house prices continue to rise, or you do something like this, which I have no experience of, but I'd have several concerns, similar to the "jointly and severally" condition attached to joint mortgages - what happens if one party fails to pay their share? Are you protected in some way?
Or you can go somewhere where you *can* afford to buy. You're not "owed" an affordable house just where you want it, but chances are you *can* afford to buy elsewhere. It may be the simplest option when's all said and done.
Soldato
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Well yes it is for lower earners but its better than paying full rent. When i first got(2017) my shared ownership flat i was on 23k. now i’m on 35k and hope to be on 40 in when i look to sell in 2-3 years time. Are you suggesting i would have been better off renting all this time and seeing no returns?
Soldato
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What do you mean one party? Your wife/husband? If so its no different to having a 2 person mortgage on a normal mortgage.
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Soldato
I agree no one is entitled to housing where they choose and that's why you have to balance the costs and the benefit, including if it's worth getting a shared ownership in your chosen location over something outright elsewhere. For me it was a no brainier, I'm a 4 minute walk to work, a 3 minute walk to immediate family. I have facilities on my doorstep but unfortunately still need a car for socialising. The amount my rent/mortgage would drop would only increase the fuel costs the same amount and I'd still only get a flat for all that effort. Entitled me would want at least a house with a garden for that additional effort which again would have to be shared ownership.
Maybe here are no jobs where poster can afford, maybe that area is away from their family/friends.
Yes its worse than getting a full mortgage, but still more financial sense than renting (assuming you live in the property for at least 5 years, 7min in my opinion to make a decent dent from paying back mortgage - other random fees.