Experiences of shared ownership

[candelabra93]

Hi everyone,

I currently work overseas and am fortunate to be in a position to save for a housing deposit. After renting in London for eight years, I hope to buy there when I return to the UK in a couple of years.

However, my plans have made contact with reality: while my deposit will be decent, my salary—though objectively good—may be a barrier to affording even a one-bedroom flat. I understand that no one has an inherent right to live in London, but it’s where my work is, where my friends are, and where I’ve put down roots over the years. Buying there would be the best option for me.

I’ve been reading about Shared Ownership and am considering using a small portion of my deposit to acquire a percentage (perhaps 25% or 30%). My plan would be to stay for a while, then sell and use the equity to help me get on the housing ladder properly. I know there are drawbacks, like the potential difficulties when selling and the additional costs of paying both rent and a partial mortgage. However, I’ve done some calculations, and my payments would be comparable to what I used to pay in rent—especially since I anticipate a higher salary upon my return. My primary motivation for buying is stability; living on a series of one- or two-year contracts is exhausting, and I intend to stay in London for at least the next 5-10 years. Right now, I’m single and don’t have children, which gives me some flexibility.

I’ve come across a lot of negative feedback about Shared Ownership, particularly regarding selling and service charges (which can also be an issue in non-SO properties). I’d love to hear from any MN-ers who have positive experiences or insights. It seems like a system that could work well for some, but it’s definitely tricky if you’re looking to eventually ladder up to 100% ownership or sell at a higher percentage.

What part of London do you need to get to? Many of the surrounding counties are far more affordable with a similar commute in as if you lived in the outskirts of London. What I'm trying to say is Shared Ownership is shit and if you can avoid it do avoid it.

I wouldn't. You have a lot more restrictions in place over what you can do to the property, and like you say, aggrovations with selling.

You can't rely on building equity just by living there anymore, prices aren't increasing like they were, especially if you only own 25% and you can't make home improvements/extensions.

I absolutely would be looking at the home counties or outskirts and travelling in.

What's your budget if you were to buy yourself?

I had a shared ownership property and would avoid if you can especially if you are looking for a flat.

The cleaning fees for the hallway were a lot and always when up every single year. Everything just takes longer with the people you share the ownership with too. Things you should just be able to make yourself.

In your personal I would move further out and commute and buy the whole property.

There is a reason why you can only find negative reviews.

I know people who have or had shared ownership. In London it can be pretty impossible to buy the whole property without vast sums of money, so it can be a good compromise. Things to consider are
What will you do if you can't staircase to buy more, or move?
Lots of people move further out of cities as they have kids, so your friends won't necessarily stay in the area.
Are the fees and service charges worth it?