To consider shared ownership?

[Tiamaria86]

Currently trapped in a private renting nightmare and savings are building very very slowly. I have seen a shared ownership house that would be perfect. The idea would be to pay as much of the mortgage off as possible and build equity over the next 8 years or so (mortgage plus the rent is still loads cheaper than what we're paying now in rent).

It's a reputable HA no ground rent or service charge.

Is it madness?

It mortgage + rent is cheaper than your actual rent then yes absolutely. We also considered this years ago, the only reason why we did not go ahead is because my partner hates new build. Go for it!

From mv experience I would advise caution OP. Particularly around reselling. Would it not make more sense to prioritise staircasing up to 100%?

Yes that is an option, the property I'm looking at is 50% ownership. Staircasing is 25% at a time isn't it and would be at the market value at the time. So I guess it would depend what that value was etc.

My experience admittedly was 10 years ago but I think I had different options to stair case. I lost money when I sold because it was undervalued ( had to accept HAs valuation). You would have more control and the option to sell on the open market if you own 100%. Things may have changed a lot since my time, but I would advise doing a bit of research into peoples experience with the HA. Good luck with whatever you decide!

OP I think stair casing depends on who you rent/buy from.

Sorry the percentage of stair casing depends on the HA.

Oh right OK, I didn't realise that. I will get into research mode

It's through Torus. My friend is with them under a rent to buy scheme and has had no problems.

We're viewing the house this week anyway so I will see how I feel after that.

If it's under a Housing Association then there won't be astronomical increases in service charge.

It's a good way to build equity rather than throwing all of your money away on rent.

Ideally you'll be able to staircase to 100% with time. That'll make it easier to sell.

Sort out a good will with life insurance to cover the sale. Most likely your estate will be liable for rent payments until it's sold.

PM me if you'd like to chat. Shared ownership was the best financial decision I ever made.

Worth considering but please research it properly and thoroughly.

I'm in a SO home and it's been a good way to get myself on the property ladder. The house we're in is a good new build and is deemed an eco house which means it has solar panels and is generally fairly cheap to run.

In 6 years I've already made approx 30-40k in equity.

I live in an SO house with Torus, I have recently staircased up to 100% and am looking to sell.

I’ve had no problems and the deal was perfect for me at the time.

Just check values against non SO in the area.
my DD looked at a few last year, and the 100% value would not be achievable at resale, by quite a high margin.

Well the property sold before we could even view it so there goes that 🤣