Shared ownership-has anyone done it before? I need advice!(11 Posts)
Have a slight housing dilemma in that I have been left my mum's house (worth £110k with a £30k mortgage on it), which is situated oop North. Am meant to be letting it out for £400 a month (£100 left over each month for me once mortgage and all the insurances are paid), but it's been standing empty for a long time now. I rent down south and pay £1k a month. I can't afford to rent down here any more but have seen some shared ownership houses near me for £70k for 40%. Really would make life so much easier-are they a good idea? It sounds wonderful.
There are some flaws:
Tend to be the 'fag-end' of the development, bits at the back overlooking the bins etc
Tend to be lower spec, and ?sometimes smaller (although saw 1 ?evening standard article saying in'The Hamptons' or somewhere they were larger -however I'm not sure I believe terraced social housing would really be bigger the the 4 bed detched they pictured )
You are (obviously) amongst other social tennants, can be a problem for some people/with some tennants
You are responsible for 100% of the costs but only own whatever percentage of the property
Can have big service charges which you have to pay/alternatively you can be banned from using some of the facilities (as per Evening Standard)
tend to have over optimistic asking prices IMHO
new build premium around 10%.resale can be limited
However in a falling market you will get the rest of the place at a discount
I wouldn't go near shared ownership, especially in this market. Can you wait as prices may come down enough for you to buy outright? Look at this article:
Oooh goodness that sounds awful! The problem is although I have a £80,000 deposit, I'm a single parent on a student income, so don't think I'll get a mortgage big enough to buy even a one bed flat in Cambridge, but can't live too far out of the city because I've got to be in uni every day until quite late at night. Argh!
Are you in Cambridge? 1K is pretty expensive for rent will college help you out?
TBH I'd hold tight prices are coming down, how much longer will you be studying?
I've got three more years here, and my rent is £900 pcm. College won't help me out because they have six houses on campus (although they are all full for the the next three years so I can't have one), so that is as far as they need to help. If I put the money into savings until the prices come down would it be the end of the world if mum's house sells? I can't get housing benefit because of mum's house so am in catch 22
900 pounds is still expensive have you looked at Mill Rd/East Rd (although schools may be an issue!!)
Whereabouts is the shared ownership if you don't mind me asking? Houses may be different, I'm in London so the big problem is predicted to be with all the luxary designer buy to let micro flats!
How long would you plan to stay there? (ie if you're sure you'll move in 3 yrs then prices will prob still be low and might be tricky to sell, if you're sure you'll be staying then might be less of an issue. Also maybe work out how much you would loose if prices fall 20% then if they fall 40% and see how you feel about those figures. Maybe get more info and look at re-sale restrictions.
It was some years ago (about 15) but I know someone who bought a house on the open market but on a shared ownership basis. I think they bought 50% of it initially. She moved from a council flat; he moved from his parents' home.
Schemes change all the time but have a google for Open Market HomeBuy which is the one I found which sounds most like what they did. Once their income picked up they were able to buy the other 50% and have since sold it and bought another lovely, bigger place.
You are both so helpful, thank you. Dd starts school this Sept, so is already in a really good school, so can really move anywhere now (I think, you don't have to change schools if you move out of catchment do you?). As it wasn't my house in the first place I'm just thinking myself to have a starting block, and we're staying in Cambridge for at least another 7/8 years, so am not devastated if prices drop, but still wouldn't want them too!! . The flat (I always thought my first house would have a garden, boo!) is on the huge development in Arbury, by the science park xx
School = sorted well done.
No you don't have to change schools if you move out of catchment we didn't.
If you want my honest opinion I wouldn't touch Arbury with a bargepole!
Can you wait and pounce when prices fall ('my agent' told me around Easter they were 10% off peak, used phrases like 'dropping the price after a few weeks' and I know prices have fallen since then.)
What about flogging your Mums place and banking the proceeds, then you can move quickly if sentiment changes.
(Don't have place to sell I just like to keep abreast of the situation!!)
That's my plan I think. Have worked out that if I don't get any housing benefit then I'll be on £7,500 less that I got last year, but would rather pay that out of the house money and try to get a bargain house than buy now ad regret it-I'm better off selling now at a bit of a loss than not being able to sell at all. Oh dilemma you are such an angel-are you in Cambs too? You'll probably end up being my landlady or something won't you xx
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