Is Shared Ownership preferable to renting?

[cuttingdownthecake]

If you're renting via social housing?

My current house doesn't meet our needs in terms of size needed for someone in the household with a disability.

We couldn't afford to just go for a mortgage but could afford a Shared Ownership (I think), if they'd accept my H's salary of £35k and my salary of £2700. I also get Carer's Allowance. I work very part time, hence the low salary.

The income for the household is around £4.5k a month but that'll include my child's DLA and severe disability premium from UC.

Might Shared Ownership be a good idea? I know you'd only own a % of the property, but you choose it and you have more options than if you rented.

Plus, it wouldn't be a house to sell, ideally. We'd probably be staying put for 40+ years or life.

Sadly, our children will be in residential care when we die so can't leave them a house or deposit to help them.

Also factor in maintenance repairs they are costly.

if you die who will inherit the property if your children aren't able to because it doesn't just go back to the housing association whoever you put in your will you leave will have to sell it and until it is sold they will have to pay rent and service charges on the property.

Oh that's insane the housing association house my mother lived in had three bedrooms and was only about 600 a month (average private that size would be more than twice that here) guess it depends where you live but in that case fair enough I'd deffo be more willing to let it go

On the other hand it's a great way to get on the property ladder when you might not otherwise be able to. You're then far more secure than in any rental.

I’m not sure I understand this- social rentals are set to a national formula and I have never seen them anything like this high. What type of social rent is it? Affordable rent maybe?

anyway in terms of shared ownership, I would usually say if you have an exit plan then it’s a good idea. It doesn’t sound like you have an exit plan, which I presume means you’ll always stay in this property. That’s not terrible but Bear in mind:

increases in both rent and service charges. A housing association landlord will increase rent by CPI so it’s an expected value but don’t forget that’s been as much as 7% in 2021/22

increases in mortgage rates

You will pay 100% of maintenance

your % of the house will never turn into 100% of a house without you earning or getting more money. It’s not a “step on the ladder” in that sense and many people seem to think after a few years in a shared ownership flat they can buy a bigger house. No, you still only own half a house (you can of course, buy more shares over time- at market value)

despite all that, if you can’t afford to buy a house 100% it gives you total security, the abolity to have more choice in neighbourhood etc

To add more I'll say I was about to get evicted by a private landlord who wanted to sell and was told council waiting lists were 10+ years I even inquired about the neighbouring council and was told I "didn't have a local connection" despite living seven miles away haha all other private rentals had became insanely expensive since I moved into my last place so shared ownership was the only option been here only about a year now and I've had no issues didn't buy it new I bought it from a previous owner who obviously had no trouble selling. Which people usually raise as an issue.
You already know you'll be responsible for repairs but honestly most of these shared ownership homes are quite new and well built.
Neighbours are other shared ownership families and honestly they're so chilled best neighbours I've ever had.

Your rental costs are insane considering it's meant to be affordable rent so if you've done the maths and worked out shared ownership will be cheaper than go for it it's not as bad as people make out.

But you have a secure tenancy.

No one is going to kick you out.

Private rental is notorious for being at the mercy of the owner.

@cuttingdownthecake We had no problem finding a mortgage and I only work part-time and we have 2 kids. Our lender took carers/DLA/child benefit into account as if it was normal income from work. I think some banks won’t do this but plenty do including many of the big ones.

Of course other factors come into play such as deposit size, credit scores, other outgoings like finance and credit cards.

The best thing to do is speak to a broker. There are plenty that you can just ring and have a free-of-charge conversation where they take your details and information then tell you what you’ll probably be able to borrow. You can find loads with a quick google.