Shared ownership but can only staircase to 80%

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Just that really - looking for advice/insight.

I'm approaching exchange on a v nice new build shared ownership (40%), but can't ever own it outright as contract stipulates max 80% share to ensure housing association retains ownership long term.

I assume owning 80% (unless I plan to stay there till I die) is pretty pointless, as who else will want to buy 80% share if I want to move, but is it still worth getting a shared ownership if I can never own it?

The pros are it is a much nicer house than others I have seen in a village I like, it gets me out of the extortionate private rental situation I'm currently in, and means my savings (from equity in house I bought with my ex) are invested & I can still claim Universal Credit when that is rolled out (if you have savings of £16k+ you are no longer eligible).

I think I'd happily live there ten years or more till my DD are grown...but I'm feeling anxious about making such a big financial decision on my own. Eek.

Any thoughts? Thank you!

If 40% is what you can afford then great, buy 40%. I wouldn't staircase to 80% though, it would be unsellable. Someone who wants shared ownership can't afford 80% otherwise they would buy something cheaper outright. SO properties aren't the cheapest on the market, but they are a good stepping stone.

Thanks Kaniel - in yr experience what is the optimum % to own outright to keep monthly rent low yet still saleable? Guess my priority should be paying down mortgage on my 40% share and worry about owning a bigger share once that is done?

We're in shared ownership. We own 50 % and have never staircased. Shared ownership is much better than renting as it gives you stability and you're building up equity as you pay towards your mortgage and house prices go up.

We could have staircased but decided to keep it at 50 to make it as accessible to as many people as possible when we sell. We're in London so prices are already high.

So the fact that there is an 80% ceiling on ownership isn't an issue? My intention is to live in this house for next 10-15 yrs and then think again when my DDs have grown up and flown the nest.

in that case you could work on paying off your 50% as much as you can so you're in a good position still in 10-15years?

Stair casing to 80% is a really bad idea - as you point out who wants a shared ownership place if they can afford 80% of MV?

If I were you I would focus on paying off your mortgage on 40% as quick as possible. Maybe think about staircaising to 50% based on what the property market is doing (don't if it stagnates, falls).

Thanks all, that's v v helpful!