Shared Ownership

SkidMarkKing

SkidMarkKing

SkidMarkKing

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Joined
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England
Me and my partner are looking at getting a shared ownership property.

Our combined incomes are £1700 a month. The property is 85k for 50% ownership.

We have worked out the price of shared ownership and the price of standard renting and there really isn't much difference. The good thing being at the end of the day you own 50%.

The only problem is we obviously need to get accepted onto a mortgage. The awkward thing is we currently live 40 miles apart due to our jobs but she has just been offered a job nearer to me so we were going to move in together where her new job is based. We currently have a 5 year old daughter together so we are eager to get moved in :S My current job is 7/8 mile from where her new job offer is based.

Has anyone been in a similar situation regarding shared ownership and a similar monthly income?
 
Speak to a mortgage advisor, they will tell you exactly what you can afford and will approach a mortgage lender to get a value of what you need.

Don't forget you will also most likely need a deposit.
 
Am I right in thinking the other person who owns the other 50%, will be charging you fee each month for like rent and other costs associated with the maintenance of the house?
 
CAPS_LOCK said:
Am I right in thinking the other person who owns the other 50%, will be charging you fee each month for like rent and other costs associated with the house?
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Correct, or at least that is my understanding. You effectively own 50% and rent the other 50% from the other party.
 
CAPS_LOCK said:
Am I right in thinking the other person who owns the other 50%, will be charging you fee each month for like rent and other costs associated with the house?
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That's correct, he will pay his 50% mortage, and then a rent to the owner (I assume the local authority). I took it that he reaslised that in the OP, but upon reading it maybe he's not up on that.
 
CAPS_LOCK said:
Am I right in thinking the other person who owns the other 50%, will be charging you fee each month for like rent and other costs associated with the house?
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Its usually housing association. Yes mortgage + rent. Not much difference to just renting though. Only pay £170-£180 rent then rest mortgage. Same as £500pcm
 
I have a friend who does this.

Deal is mortgage + rent.

The only thing that would put me off this sort of arrangement is the ability to sell up and move on. I have no idea how this works but I can only imagine that a shared ownership property is less attractive? It would be to me.
 
antijoke said:
You can increase your share as and when you can afford more.
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Yes, thats it :)

Getting desperate now as my partner had a job offer Friday. We will probably end up renting :/

Barclays want 15% deposit which works out as 12.7k

Seems a shame giving away £400/£500 a month and getting nothing back at the end of it all.
 
Just slow things down a tad would be my advice.

You will more than likely not have everything sorted in time anyway, so just take your time, speak to a mortgage advisor, get an offer of a mortgage accepted, then go from there.
 
T
antijoke said:
Just slow things down a tad would be my advice.

You will more than likely not have everything sorted in time anyway, so just take your time, speak to a mortgage advisor, get an offer of a mortgage accepted, then go from there.
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Thanks bud.

Her new boss said let her know. My partner doesn't have to rush to start :)
 
SkidMarkKing said:
Me and my partner are looking at getting a shared ownership property.

Our combined incomes are £1700 a month. The property is 85k for 50% ownership.

We have worked out the price of shared ownership and the price of standard renting and there really isn't much difference. The good thing being at the end of the day you own 50%.

The only problem is we obviously need to get accepted onto a mortgage. The awkward thing is we currently live 40 miles apart due to our jobs but she has just been offered a job nearer to me so we were going to move in together where her new job is based. We currently have a 5 year old daughter together so we are eager to get moved in :S My current job is 7/8 mile from where her new job offer is based.

Has anyone been in a similar situation regarding shared ownership and a similar monthly income?
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If you're only getting by on 1700 a month then god help you when interest rates rise. Factor in repayments if rates hit 8%. If you can still afford it (which I doubt) then go ahead but remember to factor in other house costs like buildings/contents insurance, life insurance (for mortgage) and rates too.
 
antijoke said:
You can increase your share as and when you can afford more.
Click to expand...

Some of these schemes give you up to 5 years to get the rest of the money for the other 50%. I don't know what happens if you can't afford to buy out at the end of the shared scheme timeline.
 
subbytna said:
Some of these schemes give you up to 5 years to get the rest of the money for the other 50%. I don't know what happens if you can't afford to buy out at the end of the shared scheme timeline.
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Don't think its like that with this one as you can chose upto 50/60 years to pay it back.

I keep getting shot down anyway, lol. Barclays want 15% deposit which is 12k. HSBC need me to be on 16k a year solely without adding my partners salary.

To be honest I really need a new job. I work in IT support but im on £7.50 an hour, lol.

There is a first and second line support analysts job come up which is 17-20k which would put me in a much better situation. Only downside is you have to work some weekends but its a much bigger company and more room for promotion than where I am now.
 
A lot of these shared ownership companies have mortgage advisers available and will put you at companies who can offer you a good mortgage deal. Be worth speaking to them directly. But do make sure you check for things like rent rises etc and as said above with the mortgage interest rate plan for 8% or 10% interest. Also every other bill going up and up! Insurance, Council Tax. At £1700 a month combined things could get rather tight!

If you don't already, I would suggest doing what a lot of people do and put together a spreadsheet showing fixed costs/flexible costs and see how comfortable you will be.

My car insurance rise this year has soaked up my 1% pay rise this year before I've even got it!
 
darknite said:
A lot of these shared ownership companies have mortgage advisers available and will put you at companies who can offer you a good mortgage deal. Be worth speaking to them directly. But do make sure you check for things like rent rises etc and as said above with the mortgage interest rate plan for 8% or 10% interest. Also every other bill going up and up! Insurance, Council Tax. At £1700 a month combined things could get rather tight!

If you don't already, I would suggest doing what a lot of people do and put together a spreadsheet showing fixed costs/flexible costs and see how comfortable you will be.

My car insurance rise this year has soaked up my 1% pay rise this year before I've even got it!
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We did workout as things stand now with £550 going out on rent/mortgage with bills and food we would have £200 each left at the end of each month. We would need to take internet out of that too actually so £350 between both of us but that does need to cover car insurance and save abit for even more desperate times.
 
Ok in that case, 12 months at £350 available cash. Take away 1 month for car insurance, half a month for car service/mot, half a month for home insurance. 10 months saving at £350 is not so bad given your total budget :-)
 
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