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Original poster

Should I go for shared ownership if I'm planning to live there a long time?

21 replies

Popuppilot · 27/04/2023 09:25

Hi Im just curious to hear some experiences people have had with shared ownership especially if you brought a house with a view of staying in it a long time.

I currently rent a very small house but from family so it's a secure tenancy I'm very lucky. It used to be a one bedroom but we threw up a wall to make two very small bedrooms (very small I'm in the eves with a sloping roof and no wardrobe will fit just a clothes rail and bed). I live here with my 5 yr old dd. Downstairs is one room kitchen/ living room. We only have a shower in the bathroom so I bath dd in a paddling pool in the shower tray (not ideal!!) We do ok here but I think in a few years time we might be tripping over each other.

There's a 3 bed shared ownership house for sale in the village I live in. It's perfect for us. My parents live in the village dd is settled in the local primary school we won't want to move anywhere bigger. So I'd be planning to stay for a pretty long time probably at least 10 years.

I have some money from selling our house when I divorced a few years ago. Nowhere near enough to get a full priced house in the village on my single salary but enough to manage the shared ownership.

Would you go for it in these circumstances? I'm curious to hear other's experiences (good and bad). I'm nervous as I know the market is shaky just now but if I stay long enough hopefully things will settle??

OP posts:
Original poster
Popuppilot · 27/04/2023 09:36

Anyone?

OP posts:
Desperatelyseekingcommonsense · 27/04/2023 09:37

I would go for it. Having extra space will be really valuable for your child to have space to play and bring friends round.

Acheybreakyhead · 27/04/2023 09:40

Go for it but you have to be extremely fast to get it reserved. Ring today and get the paperwork sorted and don't be surprised if it's already gone by the time you finalise things!

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Plantgeumstoday · 27/04/2023 09:43

No experience of shared ownership but if it’s all straightforward ( no hidden costs/ extortionate maintenance costs or other clauses etc) I’d go for it.

it gets you back on the property ladder and more space for you both.

Fullrecoveryispossible · 27/04/2023 09:49

It depends. I recently made the decision not to go ahead with shared ownership right now for the following reasons:
The mortgage rates still aren’t great, and even worse for SO mortgages, and combined with rent, would mean I’d be paying more than my current rate. Also at first the amount of the house I’d be paying off vs. The interest was very low
They are often hard to sell on and don’t gain much value. If people want a new build, they will be a brand new property, not one that’s been lived in for a few years.
You can be evicted without the right to your share of the house for several reasons
they are pretty poorly built with no charscter
They say if you definitely won’t be able to get onto the property ladder outright within 5 years then consider it, but otherwise just keep saving

Original poster
Popuppilot · 27/04/2023 09:57

Thanks everyone that's the way I'm leaning. I searched shared ownership and I saw lots about the trouble selling on but that's not a worry for me really. I know there are service charges potentially?? Rent raises which wouldn't happen in my current house. I have called for a viewing fingers crossed!

OP posts:
Original poster
Popuppilot · 27/04/2023 10:11

Fullrecoveryispossible · 27/04/2023 09:49

It depends. I recently made the decision not to go ahead with shared ownership right now for the following reasons:
The mortgage rates still aren’t great, and even worse for SO mortgages, and combined with rent, would mean I’d be paying more than my current rate. Also at first the amount of the house I’d be paying off vs. The interest was very low
They are often hard to sell on and don’t gain much value. If people want a new build, they will be a brand new property, not one that’s been lived in for a few years.
You can be evicted without the right to your share of the house for several reasons
they are pretty poorly built with no charscter
They say if you definitely won’t be able to get onto the property ladder outright within 5 years then consider it, but otherwise just keep saving

Thanks for this all really good stuff to consider. I think I won't get on the ladder realistically any other way on a single salary. I have a good deposit but I want to stay in the village ideally as my parents help with child care my dd has her EHCP sorted at school etc.

defo going to get a very good solicitor to go through it all.

OP posts:
fruitbrewhaha · 27/04/2023 10:18

You’d need to work out all the monthly costs.

Is there a possibility to buy the rest? How much is your original share? Do your parents own their house? Are you likely to receive inheritance that could be used to buy the rest? I think I’d only do it if I could see a way to buying it all in the mid term.

You mention your current house is rented form family. Would they sell to you and could it be extended?

Toddlerteaplease · 27/04/2023 10:19

Go for it

Friendofdennis · 27/04/2023 10:25

I would go for it because of all the plusses for you (being neat parents etc) but be aware that you can lose your home if you default and in shared ownership you are not considered to own your share and can lose it all … seeing a solicitor is a good idea

HangerLaneGyratorySystem · 27/04/2023 10:44

What share will you buy OP? I’m looking at shared ownership too but I’m going to buy my share outright - no mortgage - and rent the rest. As a PP said they go within 24 hours normally. Is it a new build or a resale?

HangerLaneGyratorySystem · 27/04/2023 10:47

There’s a good Facebook group called Shared Ownership Help Group(UK) might be a better place to get advice.

FinallyFoundIt · 27/04/2023 10:54

I had a really good experience with my shared ownership flat - bought a 50% share, and was lucky enough to be able to staircase to 100% after a job promotion plus house price rises within a few years. The housing association were great though, no hidden charges, and yes there was service charge and ground rent, but all transparent. My brother had a similar experience, although a 33% share and couldn't staircase, but had no problems selling it on.

Get all the paperwork looked over thoroughly, but if it all looks manageable then go for it.

QuirkyRobin · 27/04/2023 10:55

Personally, shared ownership has been a fantastic opportunity for us to live in an area close to our parents in a family home (3 bed semi) that we otherwise would not have been able to afford. For perspective: when we originally bought, our combined mortgage and rent was almost £300pcm less than a 2 bed town house rental three doors down. We started out 6.5 years ago with a 40% share and have now staircased to 70%. Do check that you can staircase to 100% if that is your intention as some properties in rural locations do not allow that, although if you just want to use this as an opportunity to get on the ladder this may not matter to you. Definitely do your research and get a solicitor who is experienced with shared ownership as some are not overly familiar with it and this may end up taking you longer to complete. Obviously the housing market and mortgages etc change all the time but I really think buying a house is the best investment you can make - you can’t outsave a house/mortgage and even paying a proportion of rent you are still getting more money back through your mortgage payments than you would if you fully rented (if that makes sense!). As for the eviction stuff - perhaps this depends on your housing association. Ours are very hands off and I only hear from them to tell me what the rent will be each year. As long as you are making your payments and not being an antisocial nuisance then I really don’t think you have much to worry about here. Your share will belong to the bank under a mortgage anyway (except what you pay off which is obviously yours) so I wouldn’t be worried about losing your share or them ‘taking it’ as such. A shared ownership house is yours to maintain so the HA won’t be coming to inspect or fix things so this may be something to consider if you currently aren’t responsible for this kind of thing in rented accommodation.

EachandEveryone · 27/04/2023 11:48

HangerLaneGyratorySystem · 27/04/2023 10:44

What share will you buy OP? I’m looking at shared ownership too but I’m going to buy my share outright - no mortgage - and rent the rest. As a PP said they go within 24 hours normally. Is it a new build or a resale?

Is it straight forward to do this? I’ve been thinking of the same. I haven’t seen houses shared ownership and I do worry that they don’t allow cats!

Original poster
Popuppilot · 27/04/2023 11:55

Thanks everyone I've got a viewing booked for Saturday it's an online estate agent and the vendors are doing the viewings themselves and that's what they offered so I hope it doesn't go before then.

It's 25% of the freehold. I could probably just scrape it as a cash buyer I might need to borrow £8000 on a mortgage but I might see if someone can lend it to me instead.

In time I probably would inherit the house I live in now but I have a sister living with my parents who could move in here if I moved out. She's nearly 40 in a low wage job and it would be so good for her to have her own home. There's no other way she'd manage it. So the safer option is to stay here and possibly extend but I'd be taking that away from her if I did. My parents would be glad to have their house to themselves too.

Also my dd has a degenerative condition that means she'll probably be living with me for life. When occupational health saw our house they said to move somewhere larger if I possibly can. Things like the bathroom are too small to convert to be accessible when the time comes. I'd have to make sure adjustments could be made in the SO property when we need them.

Lots to consider. Thank you so much for sharing your stories. Nice to see some positives amongst the warnings but all views are appreciated.

OP posts:
EachandEveryone · 01/05/2023 10:36

How did it go?

Original poster
Popuppilot · 01/05/2023 13:24

I liked it but she'd already had an offer! The garden is a bit small and overlooked, it's a bit dark but I'm not really in a position to be that picky.
I'll call and offer on Monday and see what happens. It's goes on local connections and things so I should have a good chance.

OP posts:
Righthandman · 01/05/2023 13:31

I would make an offer OP if you can. Have you been in touch with the housing association who run the scheme? Your DD’s disability/chronic condition may give you priority in addition to your local connections.

Original poster
Popuppilot · 01/05/2023 20:40

I will I called on Friday but the office had closed so I'll call first thing tomorrow. Thanks for those who have stayed interested ❤️

OP posts:
Crumbcatcher · 01/05/2023 20:51

I'd go for it, I had a SO property and it was no trouble to sell on and was ideal for what I needed at the time. I would buy one again. However, purchase price was higher than if it was not SO and it was valued very low when I sold it. I would get advice before making a decision to mortgage or not - from what I remember you have more protection against eviction when it is mortgaged because the bank are party to it.

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