Shared ownership schemes

spike's

spike's

spike's

Soldato
Joined
28 Jul 2003
Posts
4,074
Location
Hook
Afternoon all,

just after a bit of advice really.
to cut it short, basically the gf and me are thinking of buying a place, but probably cant afford a whole place ( if that makes sense ).
she's got a transfer at work to salisbury ( from newbury, had no choice if she wanted to be management. and will be driving over 500miles a week because of it.) i work in basingstoke. so it makes sense to be looking andover direction.

now can anyone give us any pointers of how it all works etc. have done a bit of reading but it all looks a bit complicated.

many thanks for any advice.
 
Andover .... ick!

I'd suggest one of the villages around Andover instead although you may not find the sort of schemes you want around them ...

[ I grew up in Andover ]
 
Last edited:
Hi,

I live in a shared ownership property and its pretty simple really..

- The housing association will specify a minimum percentage of the property that you must buy outright... you can however choose to own more. Im my case I own 50%.

- The cost of 50% of the property you must fund either by cash (if your loaded) or via a mortgage.

- The remaining 50% you pay rent on. Now this figure can vary immensly with housing associations and the age of the property has an effect on this too. Im pretty lucky with mine (20 year old property). I pay £130 on top of my mortgage to the Housing association. Its dead money but it pays for the garden, window cleaning, cleaning of stairways etc etc etc.

You would be responsible for any repairs INSIDE the home, the Housing association would be responsible for the external side of things should there be any issues.

Thats about it really !

If you do a google for "shared ownership" you will get lots of Associations - I guess you need to find one for your area.

Mine is called "Hightown church and Praetorian" - and have been very pleased with them so far.

Any questions just ask. Msn in trust also.

:)


EDIT: One other thing to bear in mind is that if you will be responsible for the 'Legal' fees when puchasing a property which can add a couple of grand on top of things.

The other thing you need to consider is the STAMP DUTY... I opted not to pay mine as I will never staircase up to 100% ownership of the property. If you think you will staircase up to 100% of the property then pay for the Stamp Duty straight away when you buy the place or you will end up paying a bigger sum later on.. ie: property price increases after 5 years then so does the stamp duty !
 
Last edited:
I work for the Housing Association you'll probably be dealing with since your in Hampshire.

You should be able to get lots of info at www.homesinhants.co.uk

The down side to SO is that the Housing Assocation will take 50% (or whatever their share is) of any equity when you sell up.

You can buy more shares from the Housing assocation as and when you can afford it until you own the property outright.
 
Last edited:
My only experience of shared ownership was a while ago so may not be relevant. Basically my parents and I were looking at whether buying was a better option than renting when I was a student and a shared ownership place looked like the best option in terms of cost, location and desireability (for selling on). However the small print basically stated that the housing association could require you to buy them out at very short notice which would have put the costs up to the point of it not being a viable choice.

Therefore, check the details carefully.
 
My gf has been thinking of buying a place of her own (no doubt to get away from me :p) and has been looking into the various schemes.

I don't know the exact details but there's one scheme where the government will buy 25% of the property you're buying. They will own 25% of the property and will take 25% of the money when you sell the house, but they don't charge you rent. This is obviously only open to first time buyers.

Some other new builds do similar schemes. They'll charge you rent up until you own a certain percentage of the property (usually 75%). If you own anything above this threshold, you don't have to pay them rent on it.

It pays to do yourself research before you dive in.
 
Tunney said:
I don't know the exact details but there's one scheme where the government will buy 25% of the property you're buying. They will own 25% of the property and will take 25% of the money when you sell the house, but they don't charge you rent. This is obviously only open to first time buyers.
Click to expand...

Sounds like something under the "First time buyers initiative"
plumlife is the one up here, it is a pretty decent deal you get
 
Tunney said:
I don't know the exact details but there's one scheme where the government will buy 25% of the property you're buying. They will own 25% of the property and will take 25% of the money when you sell the house, but they don't charge you rent. This is obviously only open to first time buyers.
.
Click to expand...
I've never seen that offer and that looks like a very good deal. Any chance of getting more info on this?
 
AcidHell2 said:
I wouldn't bother with shared ownership. Can't you afford a cheap 1/2 bed flat in need of decorating?
Click to expand...

Im interested to know why ?

Its a great scheme IMO and without it my son and I would be homeless.. Now I have built up equity (yes ok 50% of what the property is worth but then again my mortgage is only costing me half of what it would if i had 100% ownership).
 
siloleth said:
Im interested to know why ?

Its a great scheme IMO and without it my son and I would be homeless.. Now I have built up equity (yes ok 50% of what the property is worth but then again my mortgage is only costing me half of what it would if i had 100% ownership).
Click to expand...

But it's not you are having to pay rent on top.

because generally the rent + mortgage. means if you can't afford the 100% mortgage you can't afford the shared schemes. The people it would suit is people with only average credit ratings. I've looked into them my self and decided they don't offer any value for money.
 
AcidHell2 said:
But it's not you are having to pay rent on top.

because generally the rent + mortgage. means if you can't afford the 100% mortgage you can't afford the shared schemes. The people it would suit is people with only average credit ratings. I've looked into them my self and decided they don't offer any value for money.
Click to expand...

What are you talking about ?

I am a single guy earning about 30k per year. To afford outright a property where I live I would need to be earning another £10k on top of that plus have a hefty deposit which due to circumstances I didnt have at the time.

Like I said, shared ownership allowed me to get on the property ladder (I have made 20k in the last 2 years owning JUST 50%).

Yes you have to pay rent on top which is dead money but for me the rent I pay is minimal to what most people could pay on these schemes but I may be wrong there.

The rent equates to about £1500 a year. I have easily made more than that through the equity in the place each year I have lived there.
 
The ones I've looked at in bristool. the rent is only marginaly cheaper than a mortgage.

500 mortgage +300 rent a month. where a full mortgage would only cost an extra £150. The schemes I've seen and yours might be different. It's not really worth it.
 
AcidHell2 said:
The ones I've looked at in bristool. the rent is only marginaly cheaper than a mortgage.

500 mortgage +300 rent a month. where a full mortgage would only cost an extra £150. The schemes I've seen and yours might be different. It's not really worth it.
Click to expand...

I would assume they are for new builds... its the same round this way and I agree its not worth it with the figures you have quoted.
 
Yep new builds. + it's like 160k for a 1 bed flat. That on it's own isn't worth it.
80k mortgage. Mortgage has probably gone up as this was in the summer when interest rates where slightly lower.
 
memyselfandi said:
Andover .... ick!

I'd suggest one of the villages around Andover instead although you may find the sort of schemes you want around them ...

[ I grew up in Andover ]
Click to expand...

the ones were looking at arnt in a bad area. the idea is that we can get rid of 1 of the cars and either of us can use the train.
 
You must log in or register to reply here.
Back
Top Bottom