How does shared ownership work ?

Liquid_Entity · 23 Apr 2007 at 18:26

I am realyl considering moving out and renting but as we all know it's throwing away money. I was looking on a website and found this new property and all these details underneath. I don't get what I would be paying etc. Anyone shine any light on the subject ?

1 bedroom apartments - available at a minimum 30 % share from £53,250 based on a full market value from £177,500

:confused:

Jimmi · 23 Apr 2007 at 19:28

Hope this helps

How Shared Ownership works
Shared Ownership is sometimes called 'part buy/ part rent'. This highlights one of the most important features of Shared Ownership that differentiates it from other forms of joint ownership. Namely, you generally buy a percentage share of a property owned by a housing association and then pay rent on the remaining share that you do not own, hence: 'part buy/ part rent'. It is possible to buy a small share initially, such as 25%, and gradually buy the remaining shares in the property in a process known as 'staircasing'.

It tends to be a good route on to the bottem of the property ladder for those with lowish wages looking to buy a place on their own.

Jez · 23 Apr 2007 at 19:31

You buy your share, and rent the rest from the local housing association at a below market rate amount.

Liquid_Entity · 23 Apr 2007 at 19:59

Jimmi said:
Hope this helps

It tends to be a good route on to the bottem of the property ladder for those with lowish wages looking to buy a place on their own.

lol prety much anyone that doesnt earn £30k a year then, especially in the South East.

Might be my only way of getting a house then.

Jimmi · 23 Apr 2007 at 20:07

Liquid_Entity said:
lol prety much anyone that doesnt earn £30k a year then, especially in the South East.

Might be my only way of getting a house then.

Pretty much yes, a friend has just bought a 70% share of a 1 bed flat, cost to him £91k mortgage, and for some reason they are doing deals where you pay no rent on the rest but you cant increase your share.

unclelonghair · 23 Apr 2007 at 20:27

I bought my house on a shared equity scheme - I bought 70% and the Building Society owned the other 30%. I didn't have to pay rent on the other 30%, but had to buy it within 10 years at whatever the market value was. Fortunately I managed to convince the Building Society that my house had hardly risen in value over 10 years so ended up getting 10 years almost rent/mortgage free

paradigm · 23 Apr 2007 at 20:35

Shared ownership can work in lots of scenarios, at the end of the day you still own a share of an appreciating asset, and as such you can use it as your way onto the housing market.