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Original poster

We earn too much to be able to get a shared ownership property

68 replies

Whatdowehaveherethen · 26/08/2020 01:46

Our joint income is £82k per year before tax. This (to us) is a lot.
We've spent the last 7 years moving from rental to rental across the country to improve our work prospects. At the end of last year we were at a stage where we could afford to buy a property using the shared ownership scheme. We were in the process of looking around when the Rona hit.

Luckily for us, our employment is secure. That said, we have spent the last 5 years or so clearing previous debt and upping our credit scores.

This takes us to now. Our debts are within 3 months of being cleared. DP has just been given a promotion. Brilliant news, I know. However, his new earnings take us over the limit allowed for a shared ownership property in the areas we would like to live.

We would now have to keep saving for another 2 or 3 years to be able to buy. DP has even considered asking for his pay to be reduced temporarily but it's not possible.

I know this is a first world problem but we've moved so much in the last few years to the point where our sons have different regional accents.

We were really looking forward to being 'at home' within the next few months.

Again, I'm more than aware that there are plenty of people in a worse position.

Its just all a bit shit.

OP posts:

SheepandCow · 26/08/2020 01:55

There's some lovely parts of the country where you could buy a really nice house with your deposit. With no need for shared ownership. Would you consider looking further afield? It's your choice but personally I'd avoid shared ownership if I had better options.

superram · 26/08/2020 01:56

Try the help to buy scheme.

Finfintytint · 26/08/2020 02:41

Which part of the country do you want to live in? In London you’d struggle to purchase but anywhere else is doable. Why do you want shared ownership? Have you got any deposit?

trodinaboris · 26/08/2020 04:22

We would now have to keep saving for another 2 or 3 years to be able to buy. DP has even considered asking for his pay to be reduced temporarily but it's not possible.

Good. That's morally wrong. Buy somewhere else and leave shared ownership for those genuinely entitled to it.

alwaystiredalwaysgrumpy · 26/08/2020 05:13

I barely ever comment, but my goodness. You actually tried to have your partner's salary adjusted to still adhere to the criteria for shared ownership. Have some morals! You don't qualify for the scheme, save it for people who genuinely need it. There are other options out there, such as help to buy. Use that pay rise to continue saving and consider yourself very lucky.

Hargao · 26/08/2020 05:18

I can't see where she's specified what deposit they have?

OP is the income criteria based on gross income or take-home pay? If the latter, putting more into his pension could be an option.

MigGril · 26/08/2020 05:32

Op you have a larger joint income then us and we have had to struggle to buy in an expensive part of the UK. No option really as this is where the job opertunties are for DH and mine type of work, other areas would actually be more expensive not less.
Yes we've been on the housing ladder for 10 years but with £30k per year less then you. You should be able to make up for that. We had no help to buy and have missed out everytime on change in tax so have paid full stamp duty. I'm not upset by this, it's just how it's rolled.
I know how hard it is to move around but your position is looking really good. Make use of all the schemes you can now and you'll be good to go.
To be honest I wouldn't touch the shared ownership (we couldn't use it either). It makes it difficult to sell on afterwards and you have rent as well as a mortgage to pay.

JoJoSM2 · 26/08/2020 06:46

London isn’t a problem with that income either. What’s the problem? Why can’t you just buy without a scheme?

marriageoftrueminds · 26/08/2020 06:53

I misread that as 28k per year at first. Only you know the ins ans outs of your finances, but 82k per year is significantly over the national average so unfortunately I can see why you wouldn't qualify for a scheme aimed at low earners. Good luck with buying soon.

ivfdreaming · 26/08/2020 07:08

Shared ownership is for people that need it. You don't. We bought a house on less than half that income. You MUST be in London - anywhere else you would have been putting thousands away per year for a deposit and have more than enough by now. Or you have just frittered your salaries away when you've been paid them.....

AmandaHugenkiss · 26/08/2020 07:33

Are you willing to adjust your target area a bit to get what you want? That sort of joint wage would get you a 3 bed with decent garden in some towns near me, and I’m London commuter belt. Some of the other local towns however are much more expensive. Get your foot on the ladder in a cheaper area, spend a few years building up some equity and then move to the area you really like?

Kittykat93 · 26/08/2020 07:39

You don't need the scheme with that income. Save up and buy like the rest of us have to!

intheningnangnong · 26/08/2020 07:44

Shared ownership is often a bad outcome. People rarely manage to step up

OneRingToRuleThemAll · 26/08/2020 07:49

You are in a better position than you realise. In 2-3 years you can buy a whole house. That's fantastic.

ScrapThatThen · 26/08/2020 07:49

I know the current income multiples for mortgages and high deposits make buying really tough. And huge rents. And it's such a shame you missed out earlier this year and could have been on the ladder. However the schemes have limits and it's not unreasonable to exclude you. I hope you find some options to buy.

userxx · 26/08/2020 07:51

Why do you want a shared ownership on that income, is it because the deposit needed is lower?

LajesticVantrashell · 26/08/2020 07:57

We bought our SO home five years ago. Our combined income was £58k. The maximum combined income requirements was £60k. That might be way more than people on here would think is acceptable but they were the rules!

notheragain4 · 26/08/2020 07:58

If it's the deposit that's the issue (understandable at the moment especially) have you looked at the help to buy scheme? It does limit you to new builds, but it's one of the only routes with low deposits at the moment.

MarinaMarinara · 26/08/2020 08:06

Shared ownership means you only own part of the house though - it is a good way on to the ladder for a lower income first time buyer, and I am not knocking that. But if you don’t have to I am genuinely confused as to why you’d choose it. Shared ownership is not a great idea if you have other options - far better to buy a whole house than a 50% share (if you don’t have to keep paying some rent why on earth would you?!) At £80k plus a lot of the country is achievable for you in terms of buying. Not everywhere, obviously, but within commenting distance to almost everywhere. Maybe try the BBC “where can I afford to live” calculator for some ideas?

Aquicknamechange2019 · 26/08/2020 08:07

I know it must feel very frustrating to have worked towards a particular goal for so long but try to focus on the positives here - tour family income has improved significantly and you now have a lot more options. Yes it might take a couple more years to get there but in the long run, I think you'll look back and realise it was all for the best.

Good luck. I hope you find your forever home soon.

FManc · 26/08/2020 08:43

We have a similar joint income and we’re able to get a mortgage for approx £350k - £360k (plus whatever your deposit is). Unless you’re in London, surely that’s a decent amount?

HogwartsForever11 · 26/08/2020 08:51

Agree with pp - DP and I have joint income of £79k and have just got a mortgage on a house at £360k

shartsi · 26/08/2020 08:56

Can you buy in just one of your names using one income? I mean DPs new job is not assured yet as he will be on probation for a while, hence his earnings shouldn't be taken into account.

LittleBearPad · 26/08/2020 08:59

Where are you looking? I’d expect you to be able to buy on that income?

FlamingoAndJohn · 26/08/2020 08:59

We have a joint income of less than £60k and have a 3 bed semi. Granted we bought a few years ago when house prices were lower but we could still get much the same.

Shared ownership is a pain to sell too. You are much better off saving for a deposit.

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