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Shared Ownership Schemes

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  • Shared Ownership Schemes

    We often talk about the options of buying verses renting, but I find very view people talk about shared ownership schemes.

    Has anyone ever tried this option or thought about the profitability of this option?

  • #2
    I really can't see myself being comfortable with a shared-ownership scheme - it just seems to suggest ownership problems from the start, not least if one of the shared owners seeks to move out. Maybe there are clear ways of dealing with it, but personally, I'd find it somewhat unsettling and would feel insecure about such matters until convinced otherwise.

    2c.

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    • #3
      I've seen the tv show where they take roommate/buyers through the process, and not a lot of them end up looking all that happy! It makes financial sense, but at the age when you're most apt to do it, your emotions just aren't predictable enough.

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      • #4
        Originally posted by vicki2
        I've seen the tv show where they take roommate/buyers through the process, and not a lot of them end up looking all that happy! It makes financial sense, but at the age when you're most apt to do it, your emotions just aren't predictable enough.
        Actually what your talking about is different from what I'm refering to.

        With the shared ownership schemes that I'm talking about, you share ownership with a housing association. You pay a mortage on your share of the property and a low level rent amount on the housing association's share.

        After a number of years, you are then given the opportunity to buy the housing associations share.

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        • #5
          Is the housing association share bought at the original purchase price?

          Simply because if bought at the current market value, then the difference a few years makes could be crippling to chances of buying!

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          • #6
            Originally posted by brian
            Is the housing association share bought at the original purchase price?

            Simply because if bought at the current market value, then the difference a few years makes could be crippling to chances of buying!
            I know exactly what you mean Brian. But to be honest I'm clueless on that one.

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            • #7
              I have arranged shared ownership mortgages for people in London who otherwise could not afford to get on the property ladder.
              With a lot of lenders introducing affordability calculators and people able to lend more then I think it's a better idea to purchase the property outright and take out an Interest Only mortgage. There are also some lenders who will lend over a long term eg 40 years or even more if you wanted a repayment mortgage.
              Is this responsible lending? It depends on whether the mortgage payments are affordable to you basically.

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              • #8
                Originally posted by Stevo
                I have arranged shared ownership mortgages for people in London who otherwise could not afford to get on the property ladder.
                With a lot of lenders introducing affordability calculators and people able to lend more then I think it's a better idea to purchase the property outright and take out an Interest Only mortgage. There are also some lenders who will lend over a long term eg 40 years or even more if you wanted a repayment mortgage.
                Is this responsible lending? It depends on whether the mortgage payments are affordable to you basically.
                I guess it also depends on how old the borrow is as well

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                • #9
                  Hi Stevo, and welcome to Property Watch.

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                  • #10
                    Thanks Brian!

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                    • #11
                      i own a shared ownership

                      Hi i have a shared ownership property and find its great value,myself and hubby both had expensive divorces and needed somewhere to live,renting was way to expensive,council was a big no no(we were told unless we had kids there was no chance of us getting a flat )so shared ownership was best option for us,we got a 2 bed house with large garden and own driveway for £67,000 with chance to buy the other 50% at any time,after being here for 2 yrs we applied to buy the other 50%,which as you are classed as a council tenent means you get a discount...for being here 2 yrs we got a 12% dicount which meant we could buy the other 50% for £50,000 which we thought was great,but we gonna leave it a few more yrs as the longer you in a council property the more discount you get,so there are perks,also you dont have to sell it to the council as we brought our through an estate agent..basilcy we pay £375 mortgage and £107 rent which we thinks really good to rent a house our size would have cost us over £600 and at least we will own ours in the end..

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