Shared Ownership

StMarie4me · 2025-06-06T20:50:43+00:00

Hi, has anyone gone into shared ownership with NCHA or any other Housing Association? Wondered about Pitfalls? Thanks!

Thelondonone · 07/06/2025 08:40

I did it as it was the only way I could get on ladder. Lived there 3 years, sold my half to another teacher, was ok, if not slow. You have to pay all their costs, if you sell for less than the surveyor suggests (that you pay for) you have to make up the difference. It’s a win, win for them but not necessarily you. However, if you have no other way then what option do you have?

XVGN · 07/06/2025 10:48

Just type "shared ownership issues" into Google.

CuarloDeFonza · 07/06/2025 10:50

I wouldn't touch it with a bargepole. It's like a leasehold on steroids. Freehold all the way.

Private2025 · 07/06/2025 13:21

CuarloDeFonza · 07/06/2025 10:50

I wouldn't touch it with a bargepole. It's like a leasehold on steroids. Freehold all the way.

The people who are looking at shared ownership obviously can't afford freehold lol. Maybe if you asked them to go for share of freehold flat that may make more sense..when I was buying my budget was 400k and we had a pathetic low combined income of 75k (in 2019; in our 20s but still pretty bad). Even moving 50 miles away would have made commuting 800 quid a month and then childcare when we had a baby would be 1700 quid a month. We couldn't have afforded that even with pay rises unless we wanted to live on baked beans on toast. And the house would have been at least 350k. So we chose a 2 bed flat in zone 3 which was leasehold but freehold had been bought by residents and leaseholders managed the development so we wouldn't really screw ourselves so to speak..no car and dh could cycle to work. Now childcare has increased so all our pay rises would go to it

Iloveeverycat · 07/06/2025 14:18

I have lived in a shared ownership house for 25 years it was a great way to have a house as we wouldn't be able to afford one for our 3 children.
We don't have to pay any maintenance fees as we do it all ourselves so only pay part rent part mortgage. The only down side for us is that the house price has quadrupled in price so we can't ever see ourselves buying the 40% we don't own. The interest rate is also higher when the interest rates were at there lowest we were still paying 6%

CuarloDeFonza · 07/06/2025 16:02

Private2025 · 07/06/2025 13:21

The people who are looking at shared ownership obviously can't afford freehold lol. Maybe if you asked them to go for share of freehold flat that may make more sense..when I was buying my budget was 400k and we had a pathetic low combined income of 75k (in 2019; in our 20s but still pretty bad). Even moving 50 miles away would have made commuting 800 quid a month and then childcare when we had a baby would be 1700 quid a month. We couldn't have afforded that even with pay rises unless we wanted to live on baked beans on toast. And the house would have been at least 350k. So we chose a 2 bed flat in zone 3 which was leasehold but freehold had been bought by residents and leaseholders managed the development so we wouldn't really screw ourselves so to speak..no car and dh could cycle to work. Now childcare has increased so all our pay rises would go to it

Edited

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I think if you have the capacity to buy the freehold and or take over the management of the building/s with other leaseholders than it can work. If you are at the behest of a management company who pile on inflation busting service charges year on year it can be absolutely devastating. I've never really understood the part mortgage/part rent aspect of shared ownerships so I'd be reticent to recommend....you do yourself a disserve a combined salary of £75,000 in 2019 was/is far from pathetic. Don't think we have ever earned that as a couple even at our peak.

Original poster

StMarie4me · 07/06/2025 17:22

Thanks all. Appreciate the input!

OP posts:

NoWordForFluffy · 07/06/2025 17:34

CuarloDeFonza · 07/06/2025 10:50

I wouldn't touch it with a bargepole. It's like a leasehold on steroids. Freehold all the way.

In what way is it? Which model are you referring to, the old model, or the post-2023 model?

Not all leaseholds are the same as each other, so you need to explain what you mean a bit more.

ETA: I've never really understood the part mortgage/part rent aspect of shared ownerships

So you don't actually understand what you're objecting to?!

mylovedoesitgood · 07/06/2025 17:39

They are notoriously overpriced, the SO properties, and the pitfalls are numerous. Only do it if you’re desperate to get on the property ladder. Could you look at a smaller property and get a mortgage that way?