Tell me about Shared Ownership properties please

[DanielleandBobby]

That's it really.
If anyone has one, or knows how they work, or wants to warn me off considering one, please let me know! Thanks.

Yes I have one. Own 100% now

https://www.gov.uk/shared-ownership-scheme

For how it works.

@Unescorted Thank you very much!
@billandtedsexcellentadventure . Thanks. Can you tell me whether it's been worth it, and how long it took you to get to 100%?

There's lots of pros and cons it's better on a house than a flat.

If you don't think it will be your forever home make sure you get a lower share don't go for a higher share. Higher shares tend to be harder to sell.

do you explore if you can buy on the open market? I thought I had to buy shared ownership and I actually avoided shared ownership in the end

@MotherOfRatios Thank you. I can't afford to buy outright so am looking at other options. I'm currently renting post-divorce and simply don't have the earning capacity anymore to get a mortgage. Plus, I'm 63. However, I have enough equity from the former marital home to pay a 50% share outright in my area, and could afford the rent. I'm just wary of re-sale, and how beholden you are to the landlord. I don't personally know anyone who's ever bought a shared ownership property. hence my caution.

I purchased 50% of my house when I was single because I wasn’t able to get a big enough mortgage.

7 years later and I’m married and me and DH purchased the other half over a year ago.

The process was simple and we had to pay for our solicitors fees but that was it.

There’s always going to be a market for part ownership. The housing ladder is so difficult to get on to for this generation so if this is people’s only option to start, they will.

The fact you’ll be able to buy your own half outright is great and means you’ll only be paying the rent portion however rent does increase. Also do you have ground/maintenance fees where the house is as that’s something to take into consideration. Ours is about £160 a year.

Is there no way at all of purchasing a smaller property outright with your deposit as it sounds quite big. Or getting a small mortage?

@DaisyChain505 Good to know, thanks. I'm 63, am self-employed and have already investigated getting a mortgage which doesn't look possible now. I live in a fairly expensive area where I need to stay, and my adult DC also lives with me so I need a 2-bed home. All these things considered it looks as if shared ownership may be my only option as I refuse to keep paying the (high) rent that I'm paying long term.

Do you just have the one DC? Is there possibility for them to team up with you to purchase a house together seeing as they’ll be living with you? Have they been saving a deposit of their own?

Yes, just one DC but they don't have a deposit as they are only 22 and have only been in their job for a year but hoping to earn more in time. I have considered thi, but I'm not sure what where either of us would stand if either of us met a partner in the future and wanted to sell our half. Anyway, I've got a lot to ponder on! I appreciate your comments :)

Ah I see! Don’t be put off by shared ownership. I would never own the house I do now without the start they gave me.

When it comes to selling the property you have to split whatever profit is made 50/50 with the housing association so say the house is worth 200 and you pay 100 for your half and then when you sell it’s worth 250 you would walk away with 25 profit.

We bought 50% then bought the other 50% two years later. They valued it as it was when we
bought it, rather than at how the house currently looked as we’d done a lot to it to add value. It’s been very good for us as it wa financially manageable. But also got us onto the property ladder in an area which we could have never afforded. Feel grateful for the scheme to be honest.

That sounds great. Did you buy a new build?

@DanielleandBobbyno it was an older property

I worked for a housing association. The shared ownership team manager told her own son not to buy one. Often over-priced, flats have rent and service charges, which really add to your costs and rise every year, residents often struggling to get works done in flats and in houses the maintenance is all yours, even though the ownership is shared. Houses you have the all the risk. Who is your neighbour, as tenures are mixed, so check. I know that remainder / non sold shared ownership are often converted to social housing. I did have one of the first shared ownership in the 80s, but after having to retrieve legal documents to get the HA to fix structural issues.... I sold. Go in eyes wide open and know the area, the feedback on the HA that owns the other half and talk to the neighbours.