Part Ownership Schemes

[sarz]

Does anyone have an idiots guide? or any experience? Or any tips or just anything?!?!?!?! I not totally sure how it works!

What is it you want to know?

everything really!!! exactly how it works, how owns the other % and do you have to pay them a sort of 'rent', and can you eventually buy the other %, is it worth it or do you end up paying over the odds for the other %?

who not how!!

We have shared ownership. The housing association own the other percentage, and we pay a small rent to them. We are responsible for all repairs except structural. Don't know if it's the case for all associations but we can buy the remaining percentage in up to 3 stages and have to pay fees to the association to get the house valued and surveyed by their choice of surveyor. Oh, and we were means tested in order to qualify for a shared ownership scheme! hth

The schemes work as you buy a percentage whatever the offer is at the time so say it is 50% of the property, you then get a morgage for 50% of the price & pay rent for the other 50% of it, you will be paying whoever you buy through & whatever scheme you use. You have to have about £3000 for legal fees etc to start of with.

You can also buy more into the property so say you start off as 50% you can then up it to 75% but again in all depends on the people you do the shared ownership through.

there are a few different types, one has been available I think where you buy 75% of it and they own 25% which you ever pay back when you sell (as 25% not what you originally paid) or buy it outright after 5 years. That seems a better option to me if you think you can afford to buy it outright (by increasing your mortgage) - the renting part of it to me is not good for a long term option!

I am just wondering if it costs alot more because you pay rent and morgage, though i suppose its the only way i will get a mortgage!!!!!!!!

my concern when I had a half rent/half mortgage shared ownership is that if I fell on hard times I would unlikely to be able to claim housing benefit as the council would ignore my mortgage payments IYSWIM. Also the upkeep of a house is quite high - replacing windows, boilers, dealing with leaks etc owning your own home is not the be all of everything - if you don't like neighbours you can't move etc

Cargirl, i know owning a house isnt the be all and end all, but i would never be able to get a council house, and i begrudge paying someone elses morgage by renting!!