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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

Buying a shared ownership property

42 replies

Dragula333 · 22/10/2021 12:37

My partner and I have been to view a 25% shared ownership 2 bed property. We are first time buyers.
The deposit is £1500 for 5%, we have most of it but won’t have the rest until I get paid in just under 2 weeks’ time.

The agency have just asked me to email this through. It’s frustrating as we will have the money in 13 days, I know it’s a silly question maybe but what are odds of us still being able to apply?

My 2nd question is does anyone have experience of shared ownership, particularly a small share one like the one we’re interested in? Thanks

OP posts:
Hont1986 · 22/10/2021 12:58

Still apply, two weeks isn't going to matter. The house buying process takes months.

Original poster
Dragula333 · 22/10/2021 13:01

I’m glad to hear the 2 weeks won’t really matter, I’ll put in an application. Not really a clue where to start

OP posts:
Smorgasbored0000 · 22/10/2021 13:45

Don’t do it. Lots of negatives around the shared ownership scheme. DH’s brother and wife have been completely stitched up by it and they’re now effectively in a flat they aren’t able to sell. Please do some google research before committing. There’s plenty of horror stories out there.

DamnUserName21 · 22/10/2021 13:46

Don't know about much a bout SO but I do know that, in my area, the maintenance fees are high--how are they for the property you are buying? Also, from what I understand, upkeep is your responsibility, not the HA.

DamnUserName21 · 22/10/2021 13:47

*excuse the typos

Technosaurus · 22/10/2021 13:47

Good luck on getting your first house!

However you did ask about shared ownership... I wouldn't personally go near them if you can avoid it. Example: My S-I-L bought one, which was a lengthy process in itself, and there's all sorts of caveats - eg their house has a disabled-friendly downstairs toilet. Which I'm all for, but the toilet is absolutely huge and the kitchen is tiny. F-I-L has just retired and offered some money to pay for a bigger kitchen... but they aren't allowed to knock down the wall to make the toilet smaller and the kitchen bigger, just in case the next person they sell it to needs a disabled toilet. It's a clause in the contract even though the front of the house has steps to get inside it, so it's not exactly 100% disabled friendly!

You don't have these sorts of issues with full freehold - plus you can only sell shared ownership ones to people who meet certain criteria (from memory - critical workers, under-35's, first time buyers only etc).

It sounds like from what you have said you are in a position where you are able to 'save' several hundred pounds from each pay packet, which is a great position to be in and congratulations for being so savvy. I'd personally save away for longer and look to buy something 100% that you can make your home, but that's just me.

negomi90 · 22/10/2021 13:57

I looked at shared ownership when I was buying a year ago. You can get far more house for your money, but there are lots of cons. Its a share, its not yours, you're restricted in lots of ways.
In some ways its the worst of all worlds. You own so you're responsible for maintenance. But you can't modify the house how you want, you only own a portion so if you renovate or redo something, then you won't get all of the money you put in. You add to the equity but don't get everything you put in back, but you're still fully liable for everything that goes wrong.
You get all the liability but very little of the benefits.

ConstanceGracy · 22/10/2021 14:14

You have to keep an eye on how long the the leasehold it has left on it for when you want to sell as this is what help up our buyers.
It’s bloody expensive if you need to pay to add more years on to it , like thousands of pounds

Original poster
Dragula333 · 22/10/2021 14:17

Apparently it was 99 years starting in 1984, does this seem like a bad deal ?
Thanks for the advice so far
I’ve no idea where to start with it all

OP posts:
AliceinBorderland · 22/10/2021 14:19

@Dragula333

Apparently it was 99 years starting in 1984, does this seem like a bad deal ? Thanks for the advice so far I’ve no idea where to start with it all
A 62 year lease.

Christ walk away

Mandofan · 22/10/2021 14:20

Walk away. I looked into shared ownership and couldn’t believe the horror stories

PassTheDutchyUpYrLeftBackside · 22/10/2021 14:31

@Dragula333

Apparently it was 99 years starting in 1984, does this seem like a bad deal ? Thanks for the advice so far I’ve no idea where to start with it all
I don't know about shared ownership processes, but that lease length is extremely unattractive.

In an open market sale, it would be cash buyers only as most mortgage lenders would not lend on that.

HotToddyColdSauvignon · 22/10/2021 14:35

That’s not long left on the lease at all. As an example, when a lease gets to around 75 years, you should look to buy an extension.

The amount that’s left on your lease makes it very difficult to sell on, without having to buy another 50 odd years before you do so. Which can be very expensive.

I’d keep looking for your home if I were you OP. It’s not great, sorry :(

friendlycat · 22/10/2021 14:42

The lease is far too short. You won’t get a mortgage lender to lend on that lease. Walk away.

Offmyfence · 22/10/2021 14:49

As others have said the lease is far too short.

WheelieBinPrincess · 22/10/2021 14:51

Nooooooo they’re trying to fuck you by getting you to take on a lease that short.

Kitkat151 · 22/10/2021 14:53

Don’t do it.... you will regret it

HilaryBriss · 22/10/2021 14:58

The agency have just asked me to email this through. It’s frustrating as we will have the money in 13 days, I know it’s a silly question maybe but what are odds of us still being able to apply?

They have asked you to send the deposit through even though you haven't actually applied yet? Or do they just want to see proof that you have it?

Tbh, if you can't get £1500 together without waiting for payday, can you afford this? How are you going to pay the fees etc? What about maintenance costs etc once you move in?

WheelieBinPrincess · 22/10/2021 15:06

I do think the same as @HilaryBriss but I didn’t want to be harsh… but it’s a point worth making. If you don’t have the £1500 and more in savings already, I’d worry this is a big stretch of your finances.

Fieldsoftripe9 · 22/10/2021 15:35

I don't think a lender will lens on a 64 year lease. Once a lease goes under 80 years it costs a fortune to extend a lease. I wouldn't touch that short lease.

Cocomarine · 22/10/2021 15:41

@Dragula333

Apparently it was 99 years starting in 1984, does this seem like a bad deal ? Thanks for the advice so far I’ve no idea where to start with it all
God no! If you’ve no idea where to start, then why are you trying to commit to this?!!! STOP. And do your research. My mortgage company wouldn’t lend on anything that didn’t have a 99 year lease remaining at the end of my 25 year mortgage! I sold a flat with an 84 year lease and it was in the condition of sale that I paid to extend it to 125 years before completion. That was actually really easy to do, and cost a couple of hundred (it was 25 years ago, I forget how much exactly but it was definitely an admin step not a massive profit generating step).

I wouldn’t touch a 62 year lease with a barge pole, even if a mortgage lender would. (and I doubt they would)

lilymty · 22/10/2021 16:05

Do not buy. We lived in a block of shared ownership flats. We were the only ones with 100%. Previous owner was an estate agent & made them sell him 100% as he said he would never advise people to buy a shared ownership. All the other flats had loads of problems. We sold ours 5 years ago & another flat which was a better flat than ours was on the market before ours. Its never sold as the landlord decides the price to sell it at & they have way over priced it so they are stuck.

TheUnbearable · 22/10/2021 16:07

Don’t buy with such a short lease ever, I assume your probably SE. Plus research areas before buying. Don’t buy in haste.

Original poster
Dragula333 · 22/10/2021 16:12

The rent is only £75 pcm and service charge about £85 per year plus the mortgage is very low so that’s what appealed to us.
But I didn’t know about the lease thing, I admit I’m very new to it all but glad to have read these replies

OP posts:
Cocomarine · 22/10/2021 16:32

@Dragula333

The rent is only £75 pcm and service charge about £85 per year plus the mortgage is very low so that’s what appealed to us. But I didn’t know about the lease thing, I admit I’m very new to it all but glad to have read these replies
Rent on 75% of the property is £75 per MONTH?!!!!!

Did I just wake up back in 1987?

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