Shared Ownership houses

[RedCarsGoFaster]

AIBU to think this is my only way out to get on the property ladder now?

I'm 41, unhappy marriage, considering how to leave. 2 large dogs. No kids.

Rentals in Devon and Cornwall (I live on the border) are nonexistent and especially impossible with pets.

I can save a few grand over the next year or so - I might be able to ask family for some help as a "gift" - to get together a small deposit for a shared ownership property.

I've looked at the prices in the areas I could live (in order to still be within visiting distance of friends) and I could afford the mortgage, rent and upkeep etc. It's still less than most rental houses. A flat is not something I want to live in again if I can avoid it unless it has a secure private garden attached to it for the dogs. I want them to have room to potter about.

No way I can save 10% of £220k and get out in this decade - the average house in my area starts at that price....

Is this my best option? In principle I could move back to Scotland and buy a place for under £50k but I work for the Civil Service (mostly remotely, occasionally travel to South Wales) in England so I think that would cause me issues with my employment. It's not a job that readily transfers over to the Scottish government for various reasons including different legal systems.

AIBU? Is this my best option? Do I need a specialist mortgage advisor and mortgage lender?

Bumping as I'm a bit desperate to talk about this

Do I need a specialist mortgage advisor and mortgage lender?

Yes. If you're desperate to talk to someone about it then I'd give an advisor a ring today. AIBU is just likely to give you conflicting and confusing (and not necessarily correct) advice.

I did it. Similar situation and location. You need to find a home first and be accepted by the housing association for the rented side. When you have your acceptance you’ll need a specialist broker and solicitor. It’s not as complicated as it sounds. Have you registered with Help to buy? You need a reference from them. Helptobuyagent3.org.uk

Sorry I've no advice on the shared ownership side but I work for civil service agency in South Wales and we've definitely had people move to Scotland since the pandemic and they've remained in the same role. Might be worth talking to your HR and/or payroll.

I'm in shared ownership, like you it was the only way I could get on the property ladder. Bought a 25% share so the deposit was manageable and obviously a smaller mortgage more achievable. I've actually managed to pay off my 25% share over a number of years so the hope is when I sell that share will become a deposit for a non-shared ownership share. I didn't use a specialist advisor, just a regular sort.

Great to hear it worked for you! Yes, I've been accepted by "Help To Buy Agent South" this week - although, they didn't ask for any proof of anything at all which I find really strange!

There are a few resale properties I like the look of in particular, so I guess the next step (apart from the mortgage deposit) I speaking to the advertising housing associations?

That's REALLY helpful, thank you. I'll give them a shout this week and ask. I'm guessing it'll cause all sorts of mayhem in terms of getting mileage etc paid So I'll need to see where I stand with that as it's an "optional" move, not an enforced one.

That's also great to hear! Have you looked at stair casing? My plan would be to try to buy more in time so I'm not paying rent into my retirement (another 27yrs away mind you!) if I can avoid it. I was hoping to buy a few percent each year, but I don't know the logistics of this in terms of mortgages.

We got onto the housing ladder with shared ownership. 5 years later we had built up enough equity to buy normally. Best thing we ever did. We went with a reputable housing agency though.

My suggestion is Google and talk to the Management Company first. We know Genesis. Ask them who their 'tenants' use.
A relative is now on 50%. Very rigid rules on 'staircasing'.

It's better than renting if you can't get anything else.

I know people in them who are perfectly happy.

@RedCarsGoFaster I did look into staircasing but I'm in London and planning to move out in the next few years. So I decided I was better off saving my money myself instead of putting it into my property. If I was staying long-term I would have staircased up to 100% as soon as I could manage it.

Hi, I am currently looking to buy a house too. I'm in the South East.
You will need to first save for a deposit before registering your interest in any properties. Once you have a deposit you can start applying for properties.

Stair casing is effectively a similar transaction to Conveyancing so your legal fees would be high if you were only to buy a few per cent at a time. I’m hoping to do it in 20 or 30 % chunks. I currently own 40%.

As there are quite a few housing associations you might be better to find the house first and then find out their criteria. I was hell bent on a Live West property but found one with Sovereign in the end.

Such a great idea if this is the only way to buy. Unfortunately though- even with a good deposit- you still need a decent salary, which I’m a little way off atm (especially as a singleton!).

Bumping this as I am in a similar position. I found a thread on Money Saving Expert forum on which a lot of people came on and said no tis dire, lots of doom and gloom but interestingly not one had actually bought a house that way! And then more with skin in the game - actual S/O owners - came on and said it had been absolutely fine. The key seems to be to get with a housing association builder so that the "rent" part doesn't constantly get increased. But as I say, bumping as I'd love to hear from others who have had good or bad experiences with shared ownership.

Will we find in 10 years time thousands trying to sell s/o? And why do you rarely ever see re-sales advertised on Rightmove? I know there is restriction on selling which means the landlord (developer) must have the chance to market it first, but surely there would be some ending up on the open market? And if not, surely that's a good thing, if they are being snapped up?

My friend is looking at these (in a different area) - be warned, they get snapped up extremely quickly.

I'm sitting in my Shared Ownership property right now. Dealing with the HA has been the easiest part. Be aware that all parties will treat you as slightly sub-human until they realise you do actually know what you're talking about.

The "specialist " mortgage broker talked to me like I was five years old, until I told him I had had a mortgage since 1996, and knew exactly how they worked. He apologised and became a bit more normal after that. The solicitor they recommended was appalling, and at least five of us in our road are making complaints about them.

HOWEVER, certainly around here, you get a lot for your money. Your neighbours will all be normal working people, because of the mortgage requirements. Happy to answer any specific questions you may have.

if your in Cornwall look at Astor HA they used to have a lot in the southwest

My son is just about to buy a shared ownership flat in the southwest
you have register with the shared ownership / help to buy scheme and you get a registration number
I think it’s called shared to buy or help to buy agent

Then you can register your interest in the properties
you just have to keep looking and check right move for SO as they can be advertised on there after 4 or 8 weeks by the owners if the HA haven’t sold it

my son went to the developer/ management as he knew that they did the management / financial stuff for the HA
The management had a few that were going to be rented out privately but they can also sell them via the HA which is what they did for my son .

He passed the affordability test with the management company
and with his broker and it’s now with the mortgage company

ideally you need a solicitor that is familiar with SO

my son is using Atticus law which is in the south west and has a branch in Plymouth and they are charging around 1700 I think

My son has a 50k deposit earns about 31k plus overtime but they only take a percentage of overtime into account .
full cost is 230k
hes buying 60 percent so I think he is getting a mortgage for about 93k
his mortgage is 410 fixed for 5 years
rent 190
service charge is high at 180 but the apartment is set in 10 acres of grounds and it’s a listed building

To rent the same apartment would cost around £1200 plus bills
He used L & C brokers

things to check can you staircase up to 100 percent some only allow 80 percent
how long is the lease / ground rent service charge as even some newbuilds can have service charges

rules can you have pets ,
can you put up a shed
can you do an extension
can you put up a satellite dish

Where my son is buying you can’t have pets ( but judging by the amount of chows and frenchies no one takes any notice 😂😂

there is a good fB group called everything shared ownership
that’s worth joining

www.aster.co.uk/sales/property-details/31650634
This is a two bed house with private garden SO in Plymouth
but they have a lot more in Devon & Cornwall

on this example you would buy 50 percent at 120k minus off your deposit so say 10k deposit so you would need a mortgage of 110k
its 10 k more than my sons flat so say mortgage of 470 rent of 240 and monthly service charge you would be looking at around around 720 plus bills / council tax

SHARE EXAMPLE
50% share £120,750
FULL PRICE
£241,500
MONTHLY RENT
£240.18
MONTHLY SERVICE CHARGE
£9.27

Hi @RedCarsGoFaster I have a meeting with a mortgage broker tomorrow for the same reasons as you..I’m also in the south west. My income will be my issue though as I’m on my own but it’s good to get some figures to maybe work towards

@yabado is the agency specific to the area you want to live in or is it a generic SO site? Would you have a link at all please? (I’m south west)

We bought a 50% SO resale last year. The purchase was a ballache and much more expensive than a normal house purchase but I’m so glad we did.

50% share was £115000
mortgage £109000 - £550 pcm
rent inc service charge - £330 pcm

That’s a 3 bed with study, tiny garden and built in 2007.

Cheapest rent in my area is £1000 pcm for a 2 bed house, £1200 for a 3 bed. We were very lucky to find this place.

Down side is that the leasehold has only 87 years left, we will have to extend it to sell which will be £££ but we are hoping new legislation goes through in the next 10 years. We aren’t planning to move until the kids leave home at the earliest.

Good Luck!

I had a shared ownership as my first home. I loved it and it sold very easily.

I made enough profit to move up the property ladder

And I’ve always regretted selling it. I’ve owned 3 houses since my shared ownership home and nothing has come close in space, design and quality

Good luck OP! Go for it!