Shared Ownership

[ohnoohnoohnoohno]

Is it worth it? I have a sizeable deposit so wouldn't need a mortgage as well. But I'm torn as to whether it's a good idea. Any words of wisdom?

I think you need to elaborate more

how much is your sizeable deposit?

why can’t you buy a house the way the majority buy, sizeable deposit and a mortgage,

I tend to think of SO as a bit of a last resort - if you’ve got a sizeable deposit why not just buy a property in the normal way?

No, it's a crappy alternative to owning that was thought up to help developers continue to sell property at inflated prices. Avoid.

It was brilliant for me. Bought a flat in London in 2005, got me on the property ladder. I'd been living with friends in houseshares and saved a small amount for legal fees etc. Couldn't have afforded a place of my own as was single and only one wage.

Loved living there and sold at a profit when I moved in with my partner 10 yrs later.

Shared ownership can be ok for those that have no other choice, but you'd be mad to consider it if you don't need to as you have rules around what you can and can't do, and it's a nightmare when you decide to leave because there is a third party involved that can be slow with paperwork etc.

Just buy normally if you have a sizeable deposit

Yes I do think SO is better than living in house shares etc if that’s the only alternative. It’s just that SO comes with quite a few downsides such as having to buy a new build property (which tend not to increase in value for many years) & being responsible for all the maintenance costs despite only owning say 40-50% of the property.

Seeing as the OP says they have a sizeable deposit, people are questioning whether they could in fact afford to take out a normal mortgage instead of SO. Which would be a better financial decision if they have the luxury of choice which I appreciate not everyone has.

Been there. Done that. Never again.

Rent tends to be high and my HO owner charges exorbitant service charges. There's also a problem if it's leasehold, you feel like you're never going to own the whole thing and by the time you do it's also time to buy more years.

I regret it all. I'm taking what little I have in equity and moving to a much cheaper area to start again.

I did OK with it.

Bought a SO flat in London then sold it back at a profit a few years later.

But the freeholder (housing association) was often a pain to deal with. The service charge increased quite a lot and we had once of these annoying communal heating/hot water system (there is no price cap on this some people have had higher utility bills than expected).

I would say go for a SO house rather than a flat if you can.

If you have a big deposit though I would try instead to buy outright and that might means relocating to a cheaper but commutable area.