Can't afford a shared ownership flat

[77zz]

I've been looking to move out from my parents' house. I have around £2100 take home pay each month which I know isn't great but it's not that low, no loans or debt aside from my student loan which is around £80/month. I have enough saved for a 10% deposit for a flat, my credit rating is 'excellent' and I have a mortgage agreement in principle from my bank.

However, I can't afford anything in my area. Rented 1-bedroom flats are £1000+/month, shared ownership flats are slightly lower at around £900/month when you look at rent+mortgage+service charges, but I don't meet the affordability criteria. Service charges are extortionate - £150+ a month at most places.

I know I've been hugely naive but I'm so surprised how awful things are.

When I looked into it years ago the shared ownership option was no cheaper in terms of monthly repayments than paying the full amount on a mortgage, I think they were more suitable for people who couldn't get a mortgage on the full amount e.g. people with unreliable incomes / self employed etc.
If you take home £2100 a month then your gross income is what, £30-32k? If so you'd be looking at mortgage of around £100-£110k, plus a 10% deposit takes you to a property value of £110-120k which is pretty low and I'm guessing if rent on a 1bed flat is £1k then you live in a fairly expensive part of the country.
I fear you've been pretty naive if you didn't do some basic internet searching on property prices and multiple your salary by 3.5!

Yes the £100-£110k estimate is roughly accurate (I have been approved for slightly higher than this), and that is equal to or more than the cost of a 30% share of a flat, so I thought it was do-able.

If it’s the type of shared ownership where you still pay rent then you won’t find it any more affordable than having a mortgage sadly. I’d stay put at home if I were you and put as much as you can into your deposit pot. It sucks being a single income buyer these days!

It’s crap but you potentially need to look at other areas…

That's why lots of us that don't have a bank of mum and dad or inheritance have moved to far away places to be able to afford our homes.

It's ok people saying "move somewhere cheaper" but there's got to be a job to move to and a lot the time there's a reason why areas are cheap! Also, moving to somewhere you know nothing about with no friends or family nearby just for the sake of owning a home is potentially worse than living with mum and dad!

I reckon it would make sense to sell it as part of the estate and give them funds if the will allows it.
If the flat goes into their names they will probably lose first time buyer stamp duty savings. Having the funds tucked away is a great start in life for them. What a lovely legacy.

You dont need to be the middle of nowhere to find a starter home for <£100k. Ive just Rightmoved Nottinghamshire - 393 properties under £100k. Plenty of jobs in Nottingham.