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Original poster

Shared ownership

9 replies

dizzygirl1 · 19/08/2022 21:59

I might have the opportunity to buy a house under shared ownership with 40% owning and rent for the rest. I'm currently renting, landlord wanting to sell so I have to move. I'm looking at other rentals but shared ownership has just come up.

Given the housing market, is it about to bottom out ? Leaving me with negative equity or so I private rent for another year or 2 then try?

Any advise?

OP posts:
Phoenixrising2020 · 19/08/2022 22:18

It's an easy way to get on the property ladder but unless things improve you might find you're stuck on the lowest rungs. It worked out well in terms of security but it's hardly been the beginning of my property empire 😁. Get plenty of advice, don't set your expectations too high and it might just work out well. Good luck.

mussinboots · 19/08/2022 23:20

Please read other's experiences and then make your own mind up re: what suits you and your circumstances. Our first- generously proportioned in a desirable area with everything you'd need on your doorstep- flat was a SO one. It was the best decision we made. The management company was a bit of a pain (totally disorganised) and so caused some issues that were sorted out in our favour by us putting in a complaint or two, etc. but overall, it gave us a leg-up on the property ladder. We stair-cased two years later, owning 100% and made a modest deposit but our total mortgage repayments even at 100% ownership were so much lower than renting in the area. For us, it helped that we were in a good area so resale wasn't too much of an issue. I'd highly recommend it.

Twiglets1 · 20/08/2022 05:59

dizzygirl1 · 19/08/2022 21:59

I might have the opportunity to buy a house under shared ownership with 40% owning and rent for the rest. I'm currently renting, landlord wanting to sell so I have to move. I'm looking at other rentals but shared ownership has just come up.

Given the housing market, is it about to bottom out ? Leaving me with negative equity or so I private rent for another year or 2 then try?

Any advise?

Shared ownership is not ideal but if it’s all you can afford then it’s better than renting indefinitely. Just try to own as big a share as you can afford as it costs money every time you try to increase your share in future

Paranoidandroidmarvin · 20/08/2022 08:55

I agree with a previous poster. Try and own as much as u can.
Someone I know is doing this. Their rent part is larger than their mortgage part and the amount they are paying for a two bed house is three times what we do for a three.

Also the price the builders say the house is worth is the size of a four bed in the same area. So please check numbers before u agree.

User354354 · 20/08/2022 10:47

I found shared ownership horrible to get out of.

You are responsible for 100% of the property, but will only own a percentage

Whammyyammy · 20/08/2022 10:50

Housing market about to bottom out? Given your obvious expertise in the housing market, I'm surprised you're a tenant and not a landlord with a string of properties...

Original poster
dizzygirl1 · 23/08/2022 21:11

Whammyyammy · 20/08/2022 10:50

Housing market about to bottom out? Given your obvious expertise in the housing market, I'm surprised you're a tenant and not a landlord with a string of properties...

Really.... needed?
You know you can scroll past and not be rude and nasty.

OP posts:
Original poster
dizzygirl1 · 23/08/2022 21:12

Paranoidandroidmarvin · 20/08/2022 08:55

I agree with a previous poster. Try and own as much as u can.
Someone I know is doing this. Their rent part is larger than their mortgage part and the amount they are paying for a two bed house is three times what we do for a three.

Also the price the builders say the house is worth is the size of a four bed in the same area. So please check numbers before u agree.

Thank you, I think 40% would be max I could do. It's all the additional costs which I just don't think I can make room for within my budget, especially not with rising costs happening every day.
It's a good point about costs, some look ok but you've got to be so careful.

OP posts:
Original poster
dizzygirl1 · 23/08/2022 21:16

User354354 · 20/08/2022 10:47

I found shared ownership horrible to get out of.

You are responsible for 100% of the property, but will only own a percentage

Thank you for your experience. I think I'd be looking at a 10+ year plan to be in the house but the worry over negative equity concerns me. I've seen 1 house been uo for resale for a few years, it's not been well looked after so I can understand why it hasn't sold, but it is a worry that a person/family is waiting for so long with uncertainty.
The upkeep isn't so concerning.... hopefully with a new home it would be miminal for the first few years.

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