Shared ownership

[Nicky2021]

Me again, I seem to be posting a lot I’m sorry!
Is shared ownership a good idea?
Im a single parent so thought it would be an option for me to buy a nicer house for less!?
Would you recommend?

I have no direct experience but my friend has done this - it's the only way she could get on the property ladder. She got a flat in a new development and is still there 15 years later.
You really need to read the fine print.

You absolutely have to read the small print. Some are ok others aren't.

Oh ok I thought it was one scheme, all the same. Ok that’s good to know then thankyou

There are definite advantages over to renting, you can't be served notice!

You need to check how much you can buy, how much you can staircase and how quickly (buy more of it). How much the rent part increases each year. How do you sell it if you need to move - through them or on the open market?

There was a DIYSO where I lived 20 years ago which was brilliant it don't know if it still exists.

Worth looking as existing shares ownership properties that are for sale?

I had a shared ownership flat with southern housing it worked well for me. Its secure so long as you can pay the mortgage. Rent was paid by housing benefit for a time when I needed it. Its your home and while you can't knock down walls you can basically make it your own. I found being a new build estate it was a great community too. You do need to pay for all internal repairs which is a bit frustrating because you don't 100% own it. Also new builds tend to put in cheap fixtures and fittings that don't last even 5 years. Buying a resale is recommended rather than a new one, they tend to have cheaper rents. If you stay in shared ownership long-term you will need to consider rent in retirement. You can't sublet your whole flat but having a lodger was looked on positively if not actually allowed. If you can at all afford to buy outright eg moving to a cheaper area it is better value.

I had a SO house in 2000. It worked well for me as Ex and I were on low wages, then when he left it was manageable for me alone with dd2. Sold and moved in 2008.

It was a very nice new build semi, the market in our area was full of flats that struggled to sell on but a nice house with parking and a garden we sold same day.

For us we bought it as we weren't eligible for either a full mortgage and way down the council list, so it was that or private renting. We were incredibly lucky about what we got. I think it's very much worth doing local research though.

I had to go on the council house waiting list to then be invited to transfer on to the SO list so speak to your local council housing officer to see how things work in your area.

I'm in a SO house, for me it's worked out brilliantly. I'm a single parent and could not have afforded to buy a house any other way.

I'm in a new build on a new estate and love my house.

I have to say the housing authority I share with are pretty useless though and I don't like the fact I have zero control over the rent side. Ideally I'd like to staircase and buy 100% but will have to wait and see if that feasible.

I had a SO flat with L&Q in Greenwich. We were there 6 years without staircasing. For the first 3-4 years the rent+mortgage was cheaper than renting a flat in the area, then became a bit more expensive in the last couple of years, so be careful about rent increases.

I've heard horror stories about struggling to sell, but it was L&Q's job to find a buyer but I think if it took them longer than 4 months I could engage my own estate agent to try and sell. Selling can take a while due to potential buyers needing to pass the income requirements (you get your bank account, income etc. looked at by an accountant before they offer you the property). Fortunately, two viewers and the second bought. Took about 6 months in total. Made a healthy equity amount although maybe that was more luck due to when/ where we bought!

Worked out brilliantly for me, was able to use the equity when I sold up to buy a house.