FabSwingers.com forum: Shared ownership

By (user no longer on site) OP
over a year ago

Does anyone have experience of buying a place under shared ownership?

Is it worth it, or would you hold out until you have enough deposit for full ownership?

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By (user no longer on site)
over a year ago

Depends on who the shared ownership is with. I'd investigate as I'd be very wary.

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By (user no longer on site)
over a year ago

Hold out

These contracts are invariably rigged to work in the developers favour

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By *icecouple561Couple
Forum Mod
over a year ago

East Sussex

No experience but I'd always say wait until you can afford to buy on your own.

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By *annaBeStrongMan
over a year ago

"Does anyone have experience of buying a place under shared ownership?

Is it worth it, or would you hold out until you have enough deposit for full ownership? "

Hold out if you can. It’s better to have a cheaper 1 bed that you own fully than a nicer 2 bed that is shared ownership

It’s not yours. It’s hard to sell. There’s so many rules to follow. And you don’t even get any benefits of renting, while paying rent

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By (user no longer on site)
over a year ago

Also, if you try and increase your share, you have to get it revalued and pay for the updated value (if that makes sense), as far as I know.

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By (user no longer on site)
over a year ago

I would say hold out if at all possible simply because with shared you often pay a rent charge for shared part and mortgage for owned part ending increasingly costly

I’m no expert but that’s just my research from when I bought my home

Best of luck

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By (user no longer on site)
over a year ago

(Possibly) daft question

Do you have enough saved to get on the property ladder outside London?

You don't even have to live in it

Buy / rent / flip / profit

You can still buy a 2/3 bed home up here for sub 200k and values are rising

Mine is almost 50k up on what I paid for it 2 years ago

Might help you get up that ladder a bit quicker

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By *9alMan
over a year ago

Bridgend

I have known a few people who have used shared ownership with local authority etc seems to work ok . if you are living in rented accommodation at the moment it makes sense

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By *agerMorganMan
over a year ago

Canvey Island

I did look into this, unfortunately you pay rent on top of your mortgage payments.

I’ve chosen to hold out & save a bigger deposit.

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By *ragaCouple
over a year ago

Salisbury

My daughter has bought 40% of her flat through a housing association. She was able to get a smaller mortgage smaller deposit which allowed her to have her own home much earlier. She pays rent on the other 60% which takes her monthly payment to about the same as a full mortgage. They can staircase and take on a bigger percentage whenever they want or can afford. The developees never lose of course, but feom her perspective she has a new, lovely flat and can start to build some equity. As for selling - we are told that the HA readvertise the property when you wish to leave as there are lots of people looking fir this start. Hope that helps

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By (user no longer on site) OP
over a year ago

"My daughter has bought 40% of her flat through a housing association. She was able to get a smaller mortgage smaller deposit which allowed her to have her own home much earlier. She pays rent on the other 60% which takes her monthly payment to about the same as a full mortgage. They can staircase and take on a bigger percentage whenever they want or can afford. The developees never lose of course, but feom her perspective she has a new, lovely flat and can start to build some equity. As for selling - we are told that the HA readvertise the property when you wish to leave as there are lots of people looking fir this start. Hope that helps"

See this is the kind of experience I want haha, sounds so simple when you put it like this! Overall your daughter thinks it's worth it then?

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By (user no longer on site) OP
over a year ago

Thanks for all the input everyone! Tbh I'm probably only about a year away from a full deposit but I'm just itching to get my own place ASAP

so difficult when you're doing it by yourself too.

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By *929Man
over a year ago

newcastle

Personally I’d hold out if at all possible one of the best things about a mortgage is knowing your payment is actually going towards something rather than just money that you will never see again even paying rent on a smaller percentage is still dead money. I’d sooner take a loan for the extra money needed for the deposit vs shared owner

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By (user no longer on site) OP
over a year ago

"Personally I’d hold out if at all possible one of the best things about a mortgage is knowing your payment is actually going towards something rather than just money that you will never see again even paying rent on a smaller percentage is still dead money. I’d sooner take a loan for the extra money needed for the deposit vs shared owner "

You can do that?? Does it not wreck your chances of a mortgage??

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By *annaBeStrongMan
over a year ago

You can do that?? Does it not wreck your chances of a mortgage?? "

I’m not sure, but I’m almost certain they factor in any debts you have, so taking our a loan for a bigger deposit would only hurt you

It however you have a family member take out the loan and give you the money, then you just pay them back, the mortgage can’t track that. So that’s a potential option

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By *929Man
over a year ago

newcastle

It can effect it but as long as payments or met on time and debt to income ratio is favourable it should be ok might be worth checking with lender first

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By (user no longer on site)
over a year ago

Have you seen an independent mortgage broker?

They have access to deals that aren't readily available to you or I

The difference in % rates were staggering

I re-mortgaged after 2 years

The difference between what my mortgage company wanted to charge and what he was able to get (with the same company I hasten to add) was knocking £200 a month

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By *ty31Man
over a year ago

NW London

I'd recommend waiting or looking at a more affordable option/area. They can be hard to sell on and as the share increases with the value of the flat you may not see so much equity.

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By *ragaCouple
over a year ago

Salisbury

See this is the kind of experience I want haha, sounds so simple when you put it like this! Overall your daughter thinks it's worth it then? "

Hi, yes she is really happy and has a 5 year plan

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