Buying a property with shared ownership

[Giovinco]

Hi all,

Just seeking some advice from all you well educated people. I’m a first time buyer and looking to buy somewhere.

Just wondering if any of you have used the shared ownership scheme? Pros and cons etc?

Any advice would be much appreciated.

Thanks,

Gio

 

[denislawsbackheel]

Read this

Shared ownership: pros and cons explained

If you’re struggling to find a home you can afford to buy, one solution may be shared ownership. Learn the pros and cons of shared ownership and more here.

www.unbiased.co.uk

 

[yozzerblue]

I'm in one. Bought 25% rent the rest. I pay all repairs. Missed the property ladder being off the rails as a young dad. House has been good for the family. Cheap rent, but don't forget to factor in repairs etc.

 

[BlueTG]

Hi mate.

I bought in 2020 a 50% shared ownership as it was the only way I would get onto the property ladder.

Pros: low deposit, warranty if it’s a new build and typically a lower mortgage, if bought as a new build, they tend to go up in value and people typically want to buy them when it comes to affordable housing. I was lucky and sold mine at the right time andmade a bit of money a few years later and moved abroad.

Cons: the rent and service charge can go up yearly and they make the outgoing cost similar to a higher mortgage, they can be difficult for repairs if under warranty as they’ll pass the book, when you want to sell, you have to hound them and any losses on their part when selling you have to cover. Also, if you wish to buy the property which is called staircasing it will go against the value of the house in the time you apply to purchase and this will also cost legal fees.

Overall it worked for me however I know some people who also did similar and selling was a real problem as was increasing charges and rent on the share they did not own. Personally, I wouldn’t do it again, but also I’m currently lucky that I’m no longer a position I need to.

 

[Giovinco]

Hi mate.

I bought in 2020 a 50% shared ownership as it was the only way I would get onto the property ladder.

Pros: low deposit, warranty if it’s a new build and typically a lower mortgage, if bought as a new build, they tend to go up in value and people typically want to buy them when it comes to affordable housing. I was lucky and sold mine at the right time andmade a bit of money a few years later and moved abroad.

Cons: the rent and service charge can go up yearly and they make the outgoing cost similar to a higher mortgage, they can be difficult for repairs if under warranty as they’ll pass the book, when you want to sell, you have to hound them and any losses on their part when selling you have to cover. Also, if you wish to buy the property which is called staircasing it will go against the value of the house in the time you apply to purchase and this will also cost legal fees.

Overall it worked for me however I know some people who also did similar and selling was a real problem as was increasing charges and rent on the share they did not own. Personally, I wouldn’t do it again, but also I’m currently lucky that I’m no longer a position I need to.

Cheers mate that’s good advice lots to consider

 

[BlueTG]

Cheers mate that’s good advice lots to consider

Also, do your research into the holding company on the other shares.

Some are better than others. I should have stated - in a matter of years my cost increased on service charge and rent was mere pounds, and everything was communicated well by my holding company.

Some others, increased theirs more lucratively. There’s means for contesting unfair rises too. The holding company were a big difference between my experience and one of my mates experiences.

Feel free to message any time with questions to help with perspectives - there look like others who have gone this route on here and for some it’s perfect, and the pros work over the cons.