Shared Ownership schemes..Would you ?..Have you ?

I haven’t heard of that - wouldn’t that be a bit complicated? Isn’t it better to own the whole of a small house, rather than a part of a big house. It all sounds so complicated and can end in tears. Think well and take legal advice before you embark on this .

I don’t think it’s a very good idea, unless there are no other options. We looked at it recently and my main concern was potential problems when time came to sell.

I know several people whose children have done it. It's quite common on some new estates.
The main problem was that it caused difficulties when they wanted to move as there were restrictions on who could buy it and on sale price

The long term partner of a dd bought a shared ownership house years ago - it seems to have worked well for him. How much more of it he’s bought since the initial purchase I don’t know - maybe 100%. But AFAIK he’s lived in it for at least 15 years.

To me it would seem (if it’s at all possible) a considerably better prospect than renting. At least no landlord can suddenly decide he wants to sell and give you notice, and you can decorate and so on as you wish.
Of course maintenance will presumably be down to you, but then landlords are not exactly renowned for efficient and speedy fixing of any issues, are they?

I know a couple of people who have done it with reputable housing associations. Neither would have been able to get in the property ladder otherwise. It's not ideal but preferable to long term private renting and the insecurity that brings.

My son bought his first flat this way. He bought 50% with the option to buy more in future.

It worked very well enabling him to buy when the full purchase price would have been out of his reach. There wasn’t anything remotely for sale at the amount of money he could raise so buy something smaller that you own entirely isn’t an option for a lot of people.

It worked very well and sold easily to another buyer who was in the same position.

The lease needs to be looked at carefully by a qualified solicitor just to make sure there are no clauses that disadvantage either party.

These schemes work for some, worth looking into. They are of course, just a way of manipulating the 'affordable housing' quota.

Thanks for all replies so far, it is one of the options to explore.

I dont know much about it, but I have heard it described as the worst of both worlds.

HousePlantQueen

These schemes work for some, worth looking into. They are of course, just a way of manipulating the 'affordable housing' quota.

Affordable housing is frequently built by developers as part of a larger and sold to housing associations. Developers don’t like affordable rented housing because experience has shown that the tenants often behave in an anti-social way - I have seen this for myself and had to threaten action against housing associations to ensure their tenants behave themselves in an acceptable way, look after their gardens, don’t use their balconies as dumping grounds etc. Developers far prefer shared ownership because buyers have a stake in their property and look after it. They can buy greater shares as and when they can afford it, but often not up to 100%. It’s a good scheme for people who want to get on the housing ladder but can’t afford to buy outright.

… as part of a larger development …

It’s quite common CrazyH

It’s a whole property and the ‘share’ is with the builder or housing association etc. It’s seen as an affordable way to get on the housing ladder (usually on a nice new estate) and there’s the opportunity to purchase more of the property, in stages, as and when the contract allows.

My husband bought all property/ grounds around our home by shared ownership, if I understand the term correctly. He pays a percentage and makes payments to the owner, until he owns the bit of property clear, much like from the bank. If I'm guessing what your term means correctly, then Yes - good plan.

I wonder what you’ve heard fancythat? Perhaps someone who has entered into a rent to buy arrangement with a private landlord/owner?
As GSM rightly says, it gives a sense of ownership and the freedom to maintain/improve things and not be under the strict constraints of the private rented sector - at the mercy of some unscrupulous landlords.

They are often new builds, and round here at least new builds have much smaller plots than established homes. We were also thinking that we would buy more of the property as savings permitted. We were advised however that this would incur fees each time, and that we should either buy up to 50%, or 100% outright, as it would be harder to find someone to sell on eg 60/70/80% of a shared ownership home to. I can see how it might appeal to some, or be the only choice, but in our case it wasn’t worth it in the end.

My sons wasn’t hard to sell. In fact the Housing Association had a waiting list of those wanting to buy so he didn’t even have to market it!

There's a limit on how much is allowed on a mortgage - so, if it helps in buying a place, rather than renting, that seems a positive option. Yes, it helps builders with 'affordable housing' - not that many can actually afford it. There don't seem to be enough small starter (or freehold retirement) homes built.

I'm very wary of the 'lifetime mortgage racket - but that's another story.

Georgesgran

I wonder what you’ve heard fancythat? Perhaps someone who has entered into a rent to buy arrangement with a private landlord/owner?
As GSM rightly says, it gives a sense of ownership and the freedom to maintain/improve things and not be under the strict constraints of the private rented sector - at the mercy of some unscrupulous landlords.

Possibly from MN. This thread?
Plus googling.
We looked into it about 1 year ago on behalf of someone.

www.mumsnet.com/talk/property/4822487-can-anyone-explain-shared-ownership-to-me

One of my nieces has had a lovely shared ownership house for about 5 years. Very high spec, light and roomy, detached 3 bed house. They are very happy there. I think she said they can pay off more at any time.

Before they decided to go that way she added up all the money she and her partner had paid in rent since they had been together and was staggered. She says shared ownership is definitely saving them lots of money.

My friend had done this twice. The first time because she couldn’t afford to buy outright after a divorce. She has since moved areas to be nearer her son and done it again. Both times it was for new build houses and it’s worked out well for her.

Our daughter bought her first flat with Shared Ownership over 24 years ago, she bought and sold it very easily. It was better than paying out a fortune in rent and she had the security of knowing that she could stay as long as she wanted to. The property rose in value and she then bought a house with a ‘proper mortgage’ with a good deposit.
Her BIL has been in a Shared Ownership house for over 15 years again no problems.

Their experiences have been very positive and not ‘the worst of both worlds’.

I own a shared ownership property and have just sold it very quickly at double the purchase price. It is far far better than renting for the simple reason that the property appreciates in value and the proportion of rent you pay is subsidised by the housing association.

"but then landlords are not exactly renowned for efficient and speedy fixing of any issues, are they?" Witzend, that's a bit unfair. I have a number of houses and attend to problems within 24 hours if at all possible, certainly within a week. Not all landlords are remiss.

l know several younger people who have entered into these agreements and all have regretted it.