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Original poster

Shared ownership

27 replies

Imagineit · 13/02/2023 19:29

Hi, where is the best place to look for a shared ownership property? I noticed some on right move but also on some different sites too so just wondered if there was a main place to look?

OP posts:
catchthedog · 13/02/2023 19:34

depends where the builders / housing associations have paid to advertise. they cam be spread out.

rightmove and zoopla will have some

If you know the housing associations that are local to you, they will be on their websites.

Some are advertised on sharetobuy (mainly if u are in the south)

or newhomesforsale.co.uk

Original poster
Imagineit · 13/02/2023 19:36

Thankyou. Hmmm, so I need to find a list of local housing associations then.

OP posts:
BigGreen · 13/02/2023 19:36

Are you sure you want to go for a SO property? We have had no end of expense and trouble. Avoid if you possibly can.

catchthedog · 13/02/2023 19:36

the best way is to go straight to the developer - as they will often be building wait lists for sites before they are officially launched for sale.

Original poster
Imagineit · 13/02/2023 19:37

I have no choice really. I will be a single parent

OP posts:
PinkFrogss · 13/02/2023 19:38

Google Shared ownership “town/city/area name”, we’ve got something called help to buy South, that lists a lot on

catchthedog · 13/02/2023 19:38

hi @BigGreen could you expand on the issues you have had, as I work In s/o and can't think of any specific issues anyone would have outside of buying in a block of flats under the old model of s/o.

mollibu · 13/02/2023 19:44

We're currently going through ours with Wards Shared Ownership- found them really helpful so far!

MattDamon · 13/02/2023 19:45

There's a big FB group where owners list resales.

Viviennemary · 13/02/2023 19:46

I think there are a lot of pitfalls in shared ownership. Make sure you do your research on it.

Zingyzangy · 13/02/2023 19:47

Shared ownership can be a nightmare so make sure you read up on everything. One of the things I will point out, if there are repairs needed on the building or windows need replacing etc you are fully responsible for the cost even though the housing association will own the other share.

we needed extensive work done to the front of our property alongside our neighbours. We had to cover all costs, even though the HA will gain half the profits, and we had to arrange the work through the HA. We weren’t allowed to source companies off our own backs and we were locked in to using the internet boy company the HA uses.

we have also found it really difficult to move to a bigger property and we have definitely outgrown our home.

The housing association are your landlord for half (or whatever percentage they own) your home without having the usual responsibilities of a landlord should things go wrong.

that being said, it’s a way to get on the housing market but it’s not something I would choose to do again.

Original poster
Imagineit · 13/02/2023 19:57

So I'm doing my research, the housing company itself needs careful consideration?

OP posts:
Crikeyalmighty · 13/02/2023 20:01

It's easy to say'dont go that route' especially if you live in a cheaper area. Their are downsides- overvalued initially is the main one- on the positive side I've told my son to think of it like renting with more security- I would only do it in areas of very high demand and high prices though- as it's an easier resell if necessary .

Zingyzangy · 13/02/2023 20:03

Imagineit · 13/02/2023 19:57

So I'm doing my research, the housing company itself needs careful consideration?

Just make sure you go into it eyes wide open and get as much information as possible.

We have found it hard to even consider a different shared ownership as we would have to have an offer on our property before they will even let us look round a different one never mind apply.

catchthedog · 13/02/2023 20:05

The houses can't really be over valued asthey are independently valued by RICS surveyors who have to use comparable properties to come to their figures. your mortgage surveyors also have to agree. However there is always a premium to having a brand new homes- for obvious reasons.

You have to be prepared to treat it as fully owning your house - you are responsible for full maintenance just as you would be if you bought outright.
If its a house, there's far less to consider than a flat. which has larger service charge implications to consider.

catchthedog · 13/02/2023 20:06

also if it's a new build it will be under the new rules, meaning if you can't find a s/o buyer you can sell it yourself for 100% on the open market and just pay back the HA their share.
it's improved things a lot compared to what s/o "problems" people used to have.

Original poster
Imagineit · 13/02/2023 20:12

Thanks everyone this is a really great insight. I'm seeing a broker tomorrow for advice but is there any other essential reading? I've looked at the money saving expert guide

OP posts:
catchthedog · 13/02/2023 20:19

www.ownyourhome.gov.uk/scheme/shared-ownership/

Zingyzangy · 13/02/2023 20:23

catchthedog · 13/02/2023 20:06

also if it's a new build it will be under the new rules, meaning if you can't find a s/o buyer you can sell it yourself for 100% on the open market and just pay back the HA their share.
it's improved things a lot compared to what s/o "problems" people used to have.

Yes, we can sell at 100% and pay back the share to the HA. Unfortunately, we cannot look at other shared ownership properties until ours is under offer. It’s difficult as we won’t even know if the property is suitable without looking around it 🤷🏼‍♀️

Also, worth noting. We still have service charges but don’t live in a flat so it does happen on occasion depending on the grounds and any shared areas like parking spaces.

BigGreen · 13/02/2023 21:17

The legal basis is shaky, why isn't this case better known? You are paying a down payment for a lease, it isn't really 'ownership'. www.theguardian.com/housing-network/2013/sep/03/hidden-dangers-shared-ownership

You are responsible for the full costs of maintenance and repair - same huge pitfalls as the leasehold system with high fees for managing this.

Short 99 year leases on many properties, no legal framework to extend (total lack of statutory rights compared to leaseholders since you have to be able to be evicted, see link above).

Fundamentally many housing associations merged and became large entities that are not working in SO best interests. They are often completely random, call centres don't work, repairs are not done or are poor quality. Permission now needed to make changes, even internally - these are costly and hard to get if nobody will answer the phone, call you back, reply to your email.

It's insanely hard to be wedded to a completely dysfunctional org that won't repair your home but won't give you permission to repair it either.

Original poster
Imagineit · 13/02/2023 21:20

Article is ten years old though?

OP posts:
catchthedog · 13/02/2023 21:22

Big greens comments really don't apply to newbuilds now. as you'll see on the government link the changes that have been made including lease length, methods of sale, new 10 year repair fund etc

Crikeyalmighty · 13/02/2023 21:27

Just so you know OP , there are some companies now doing a kind of shared ownership on the open market. There are pitfalls and yep, terms are in their favour and there are limits on values and types of property but if you look at schemes such as way home it will give you an idea. You don't usually have a mortgage on these, it's a different way of buying. They essentially buy , and you gradually buy into it but it is another option

BigGreen · 13/02/2023 21:28

Yes I think it's a problem that there are many iterations of scheme and types of housing associations. I think the point is that if can go really wrong and is best avoided if at all possible in my personal opinion.

AnotherSpare · 13/02/2023 21:29

It's easy to say shared ownership is problematic, a nightmare, don't do it, and so on. But for many people it's the only way into the housing market, when buying in the usual way is so far out of reach and renting would be a financial downward spiral.

I bought into a shared ownership flat. Yes there were some problems. The block of flats needed some work and I had to pay into that, but if I'd bought in the regular way I would also have had to pay towards those costs. There were also rent increases to deal with, but even so, my mortgage on my share plus the rent on the rest was still less than if I'd rented the same property.

I bought a quarter of my flat, sold it after six years for a little profit and used that as a deposit for my next place. It worked ok for me.

I'd suggest you find a housing company or developer who have properties in your area and go direct to them rather than through estate agents. Where I live the flat prices have gone down a little so you might get a good deal.