House selling

I thought shared ownership was usually split 60/40 or 50/50 or similar and you pay rent on the part you don't own. I don't know as I've always bought with a mortgage. There's also those places for over 60's where you pay a reduced amount. I don't know how they work either except the older you are the less you pay but they obviously have a load of strings attached. The only one I can think of the name of is homewise.

I thought of this at one time, but my husband was always against it. Because it limits you freedom to sell at a later date. As far as I understand it.
It depends on your finances as well as your family situation .
If I had been on my own I might have considered it.
I'll try to find some examples from the area I was looking at and send you a pm.

Hi everyone, well one of these bungalows has come up and I am having an official visit Monday it is advertised as a 50% shared ownership.

Went around yesterday to see one of the residents I know but she was away. Met next door neighbour, more confused now. She is 65 and still working owns own business, she told me that she insisted in owning all but 1% as she did not wish to pay rent. It seems the shared ownership is with a company called Symphany . She also said you cannot have much spare cash after you pay shared amount. She hinted that she off loaded some money.

The reason for me hoping to do this is I cannot maintain the 3 bed property I am in and to release some cash as I need to replace my ten year old car. The bungalow will need a lot of work a poorly male previously lived in it. She told my the shared ownership does not allow anything for home improvements or cost of moving or purchasing and selling expenses. I have been on their site and cannot find any information either. I am on my own have no family to help and would really like to move to this bungalow.

I will just have to wait until I see the Estate Agent tomorrow. Although this owner told me they don't know anything either.

Money Advice SErvice has an article about it.

www.moneyadviceservice.org.uk/en/articles/shared-ownership-housing-schemes-explained

I have no experience of shared-ownership for older people but do know someone young who has such a property, and assume they are the same thing.

The problem is you'll be paying rent on the part you don't own until you die, or move. This will eat into any capital you release when you sell your present home.

Also, although you will own, say half, you are fully responsible for costs such as if the boiler breaks down - the housing association doesn't pay the other half.

It would be simpler to move to a cheaper property. And why move into something that needs a lot of work doing to it, particularly as you are on your own?

Basically you own say 50% of the property and a Housing Association (or similar) owns the other 50% and you pay them rent on that half. Sometimes it's a larger share to start with, eg 60/40. Then, if you wish to, after time you can apply to purchase some of their share. You have to be careful about what you are expected to share of costs though. If they decide to replace windows or roof etc you will have to pay half the costs.
My son has been looking at them as he's on his own so hard to get a big enough mortgage as property down here is expensive compared to wages. Even though he would still be paying about the same either way. Mortgage v rent/mortgage not a lot of difference.

Look at sharetobuy.com I think you can buy from about 25% upwards but there are a lot of things you need to think about before committing.

You will still have to contribute to the service charge which can be high it major works need doing, e.g. if the cladding is not of current standard and has to be replaced it can be very costly.

You will still have to pay rent, although some allow you to buy the rest of the property later if you wish.

Do you fit the categories of the particular housing association?

I believe that many HAs in England don't update the properties and if you do they make no allowance for any improvements, e.g. you spend £10,000 to update a property in which you have a 50% share which adds £10,000 to the value of the property but when you come to sell you only gain £5000.

In Northern Ireland I know of a scheme where any improvements you make to a property are yours and the gain is yours.

When you sell a shared ownership property there are a lot more expenses than when you sell a property which you own outright.

I agree with the person who suggested you would be better to buy a smaller property outright. Much less complicated and probably better financially long term.

It does not matter to me if I eat into any capital, as I have no family. My home is a mid terrace, I can only get similar a little cheaper and, as I am 79 this month, I think I should prepare for when I need downstairs facilities. I have no down stairs loo at the moment. My female side of the family all lived till well into their 90's!

This bungalow is small 2 bed just needs painting and decorating plus a new bathroom, I know someone who does bathrooms. The previous tenant smoked so it is very badly in need of decoration. Maintenace wise they were only built in 2004 and mine was built in 1960. Thank you Elegran I will look at the link.

If you have no family and not worried about leaving an inheritance, why not think about renting and use your capital for this, repairs etc would be the landlords responsibility.

Has your local authority any sheltered homes? Maybe worth looking at that as an alternative way. I know a couple of people who sold houses and then rented small bungalow and flat from local housing association.

jusnoneed, that is what I am hoping to do. Hope I get on ok tomorrow.