Shared ownership properties

[autumngazer]

Posted here for traffic.

I'm looking into potentially purchasing a shared ownership property next year.

Does anyone have any experience? Are they worth it?

Can you afford a cheaper property where you own 100% or is this your only option to get on the property ladder?

I did but it was a long time ago. I was very annoyed that I paid for new windows, boiler etc (that increased the value of the house) but I only gained 50% of the increase in value this created.

Sharedowner here - only go down this route if you can't afford a smaller property outright, your circumstances will change so you can buy somewhere outright or staircase to 100% before repairs need doing (as PP says it sucks You don't get full value). For me, it's great. Resale in my area is quick, I'm in a new build so no repairs, I'm early career so shouldn't live here more that 5 years before I can buy it outright or move to a home I want to spend money on to my tastes. Oh and if I staircase to 100% I will get freehold. This is really important.

Thanks all. Guess I need to do some further research. Can't really afford a full deposit on a 100% mortgage at the min x

I got the help to buy shared ownership in 2013 if it’s the same thing. I owned (mortgaged) 75% and loan covered 25%. We sold after 4 years.

Can you buy a cheaper property outright? I had the choice of a flat, or a share of a house. I bought the flat.

I bought a new build shared ownership and sold after 6 years. It was wonderful for me - I got to live in a part of town I couldn't afford outright and I staircased when I got an inheritance so that I ended up owning 75%. It helped me raise money for a deposit on a place I now own 100% (with mortgage).

It worked fantastically for me. After ten years of increasing the ownership I had 100 per cent mortgage....and sold for a160k profit. I didn't find if affordable housing as such, the mortgage and rent combined was at one point 80 percent of my salary but it did allow to get on the ladder.

Going through the process now. We earn good wages but haven't a large deposit. We will be able to staircase to 100%.

I’ve had a shared ownership property for 10+ years with a housing association. Apart from the ever increasing rent it has been a fantastic option. I echo the questions to ask as above and add the rent increases to that. Also watch the excesses to the building Insurance (which they take out) - bitter experience

Thanks all. Just some background. 37, single mum, ok wage but potential for career development.

Moving out of my £800pcm + bills private rental property next month to move in with family member for 18 months to save up. Will be paying them £375 a month all in, so should have a healthy deposit but no where near enough for a massive deposit.

Your experiences are really positive. Seems like I'll hopefully be able to get on the property ladder.

Yes if the tenants association / company allows you to rent it out. We have one, it will never make us a profit to rent, so we follow our ta’s rules for renting it out (they prefer specific professions / capped rents etc) and it pays for itself.

I had a shared ownership flat for 5 years. The rent+mortgage was initially far better than 100% renting but over the years went up until the cost was about the same. But when I sold it I made £60k and I had the regular mortgage payments for that time to secure another mortgage, so worth it in that sense.

We did love it though; new build so totally warm and didn't need any maintenance.

Sounds good! Gives me hope that I might be able to settle somewhere and not rent forever. I've rented since university and was never really bothered about owning but the last few years I've really wanted to own my own home, more so since I split up with me ex.

Cherries101 why would you put a stake in a shared ownership property to then rent it out? Where do you live?

I had a positive experience, but my SO was a charity committed to keeping it affordable, not in it for themselves. Lived there 5 years, staircases to 200% and came out with a significant equity lump which helped by my non SO next home. I was single on a v low income and it helped me on the ladder. I could have bought a flat instead of a SO house, but where I am, flats are two a penny and hard to sell on.

100%. Not sure where 200 came from!