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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

To buy a house I will only own 30% of or am I being conned?

31 replies

30percent · 12/04/2024 09:46

Would you/have any of you bought a house where you only own a certain percentage and have to pay rent on the rest? But it works out cheaper than normal renting/ normal mortgage. Other 70% owned by clarion (can anyone vouch for clarion being trustworthy?).

The house is lovely, its seeming like the only viable option for a decent sized home because rent around here and house prices have got crazy expensive in the last five year and the council waiting list is about ten years long.
Any experience or advice would be greatly appreciated.

OP posts:
silverhamster · 12/04/2024 15:14

I am in a shared ownership, I bought a 50% share over 10 years ago. The rent on the other 50% has risen by 33% in that time
The value of the property however has doubled so now I would have to pay twice as much for the second 50% as I did for the first 50%.

I have absolutely no regrets as the alternative was to continue renting, but there are pros and cons.

Pros:
It was the only way I could afford to buy, being alone.

It gave me a secure home that, unlike renting, I know I will never be asked to move out of.

It was only a few years old when I bought it, previous owners had put in things like mirrors, curtain rails, lampshades and towel rails so I could move in with minimal outlay.

Location...It is in one of the nicest spots on the estate.

No hassle or inspections from Housing Association

If I want to sell I know it will be snapped up as there is a big demand for more affordable housing.

Cons:
I'm responsible for 100% of repairs.

If I make improvements that add to the value, then sell, I will only get 50% of the added value.

If I don't buy the other half I will still be paying rent in retirement.

No help from the Housing Association, get very little for the service part of the rent - occasionally a gardener tidies the car park.

I can't go away for a while and sublet it, if I don't live here for over a year I could be forced to sell. This means if I meet a partner and want to move in with them I would have to sell it and lose the security of having a home of my own to fall back on.

If I buy extra shares, it might be harder to sell as it would be less affordable.

If I want to sell, I have to first let the Housing Association advertise it for several weeks through their list of people eligible for shared ownership. A valuation to put it on the market has to be done by their surveyor but paid for by me, and after something like 3 months it expires and has to be done again.

Not all mortgage products are available for Shared Ownership so I tend to end up with higher interest rates than for the mainstream market..

MAFSAUS · 12/04/2024 15:20

It has worked for me, I bought 50% of my house six years ago with a view of slowly buying more as I was able.

Thanks to an inheritance last year, I now own 100% including freehold of my property.

It wasn’t without issues but it worked for me.

TheYearOfSmallThings · 12/04/2024 15:31

I have friends who have done it. It was their only option because they couldn't afford to buy 100% of anything and rents were rising every year. They got to live in central London instead of being forced out, and they are happy with that.

In all the cases I know it has worked out well for them financially, but in fairness they were buying 20 years ago and it might be different now. I see articles where people are being stung for outrageous service charges.

30percent · 12/04/2024 16:54

TheYearOfSmallThings · 12/04/2024 15:31

I have friends who have done it. It was their only option because they couldn't afford to buy 100% of anything and rents were rising every year. They got to live in central London instead of being forced out, and they are happy with that.

In all the cases I know it has worked out well for them financially, but in fairness they were buying 20 years ago and it might be different now. I see articles where people are being stung for outrageous service charges.

It's good to hear it worked well for your friends, I don't live in London but it's pretty much the same situation where I am now with normal mortgage and rent being completely unaffordable.
I was told today that loads of new regulations came out recently on new built houses to protect buyers from being screwed over but the house we are interested in was built about five years before this, it would be disappointing to find out the slightly older houses aren't included in these new rules

OP posts:
TheYearOfSmallThings · 12/04/2024 18:54

I would hope the risks would be lower for houses (assuming you aren't sharing the costs of an estate that also has flats). The horror stories I've heard have been to do with large apartment blocks, cladding, fire patrols etc.

silverhamster · 12/04/2024 22:17

Just to add that mine is a house.

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