Clare

I think maybe you have got the wrong idea about Shared Ownership properties.

Both of my houses I have owned have been Shared Ownership. My first 1 bed house I paid £21,000 for 60% Share, I also paid £50 per month rent on the remaining 40%. 3.5 years later, I sold my 60% share for £60k, pocketing me £40k profit. You dont actually sell the share in the house, in theory you just change the name on the rent book.

My current 2 bed house (been there about 18 months) is a 40% share, I bought it for £48k, and I pay £151 a month rent on the remaining 60%.
I can then sell my 40% share for the pro-rata'd market value (which at the moment is about £60k)

Luckily because of the profit in my old house, I now have a very small mortgage on my current house.

Shared Ownership can work very well for most people, but it is very important to see how many schemes are running in your area and compare average rent prices between them as you may be surprised at the differences.
Also, some schemes allow you to add a premium to your selling price (ie a lump sum figure that is stuck on top of the market selling price that has to be paid in cash by the buyer). Some wont let you do this anymore like Midsummer Housing in MK, they no longer allow you to do it, but the MK Council scheme ones (like mine) still allow you to add anything up to £10k on top

Hope some of the above helps, as said it can work for some people better than others, but generally, if you're only planning on owning the property for between 2-5 years, it is a very good thing to look into.

deleted

i paid 76k 2 yrs ago for my 1 bed g floor flat with garden its now worth 120-125 ish but the next step is a 2 bed a 160 round here but no garage and smaller than my flat im stuck here for a while

RSrussell

As clare says, shared ownership worked a treat for me too.
Bought 50% 2.5 years ago for 37k, and rented the rest for £90 per month.
Then bought the other 50% and got a 40% council discount on the current value, so only had to pay £30k So 67k for what is on the current market at 120k.
Well chuffed

Housing associations will not give you a discount on the remainder of the property, but if you can find a shared ownership, where the other half is owned by the council, you more than likely would, especially as a first time buyer

Cawood

tellin me gareth, i'm 22 n just bought my first house last week, what a blag!! they well expensive, got a very good deal though! worth it like but i'm gonna be poor for the rest of my life,

RST having to stay at my Mums now as well as I dont have a garage!

feel sorry for you southerners, well expensive down there

CliffRS4

iTrader: (1)

My mate and I are thinking of buying a property as he wants to move out and I want my own place to go to when I go home as living with the parents is a pain in the arse as you get no peace.

I think it'll be a good idea as I still want to enjoy life without completely skinting myself at the moment.

I know that I'll be able to pay my half of the mortgage off reasonably quickly as I am away all the time and don't spend that much money on other things apart from the car.

Both of us will have our deposits sorted by the beginning of next year so we'll see then.

There's alot to find out and I will keep an eye on here as there is already some very good advice

Thrush

iTrader: (1)

This seems fairly sensible to me, as a £30-40k mortgage is not as bad as one on a £100k house isgonna be, so with the extra £100 a month rent whatever your paying that still looks like a do able figure each month, then you can look to own the whole thing later on and hopefully sell at profit

RSrussell

Exactly thrush, and as the house prices go up so does both shares, so everyones a winner.
On some properties you have to wait 2 years until you can buy the other share.

It really is a good deal, but in most cases the share you buy isn't a true reflection of the overall value, they tend to bump it up a little.

i.e 100k home, you buy 50%, you won't necassarily buy it at 50k, but more likely 55k or even 60k.

The only probs with buying a share, is the more you spend on the place, the more you shoot yourself in the foot.
We fitted dble glazing, refurbished the whole place even done the garden, adding value and making it more saleable.
But not only does your 50% increase, your adding value to theirs, so when you come to buy it, you'll be paying more, for work YOU have done
Thats why its a touch if you get a discount when you come to buy the other share.

Neil Clark

TBH, selling your beloved cars is the only way forward while you run them the petrol-insurance-running costs etc are all alot higher, i sold my late sierra cosworth as the down payment on my first house and aint looked back.

As for house market goin down 20%? wot a load of bolloxs, i have 2 houses and the one i rent out has gone UP £20k in the last year so the longer you leave it the worse it gets. They said about 6 months ago it had stopped goin up but its still rising now round here!

Sorry boys but sell the flashy cars, you can have another in a couple of years.........

Neil

deleted

bought my cossie after buying the flat so was not a problem but for some its the only way

FE'Z'OE

Hello

I work in estate agents and in my area for £150,000 you get a small one bed flat? I havnt got any first time buyers looking......I still live at home its so bad.....might sell my rs and get a camper van and live happily ever after in that!

deleted

cant belive you admitted it on a bb......








me too

Phil

iTrader: (1)

You used to be able to buy a terraced house in stoke for £12k

About 8 years ago...

Aaron1204

I live in Windsor, renting at the mo, absolutley impossible for me to buy as the house prices are just too high

I joined the shared ownership list over a year ago and haven't had a single property offered to me.

Been told by a few peeps that now is DEFFO the wrong time to buy as there may be a crash. But even if there is I can't see myself beign able to do anything other than rent, which is basically paying some other fuckers mortgage for them or chucking ya money down the drain.

FE'Z'OE

Why? Theres nothing wrong with what i do, its really interesting and i work for a nice company that dont over value or take people for a ride. I work for a family based company. Iv been doing it for 5years and i love it, and its great when you deal with people buying and selling houses and keep them happy. and we get alot of compliments, i love handing over the key on completion day when people are soooo happy and excited and we get plenty of wine mmmmmmm I love looking at the huge properties been dealing with ones over £900,000 they are stunning!

FE'Z'OE

cossinuts do you work in one too?

Clare

You dont get offered them on a plate you know! lol

You have to go find them yourself in your local Estate Agents, the only reason you need to pre-register is so that you know you have been accepted by them before going to all the trouble of booking surveyors etc.... only to find out later down the line you dont fit their criteria.

Aaron1204

Qoute:
You have to go find them yourself in your local Estate Agents, the only reason you need to pre-register is so that you know you have been accepted by them before going to all the trouble of booking surveyors etc.... only to find out later down the line you dont fit their criteria


huh? they told me that when a property becomes available they would tel me, if i was suitable, never said nowt about goin to estate agents my self!! Whats the deal with that then? thought the agents only dealt with private vendors? not housing assocation?

AD-RS1600i

I'm in the same situation

My mate and his girlfriend brought a terrace house in Northampton in St James, fully furnished etc. for 52k in 1998. They were cacking themselves at this 'massive morgage', as at 20 this was quite a big investment and they wern't on the greatest wages ever etc. Well, a identical house next door recently sold for 95K unfurnished!!!

52k would be within my morgagable amount, but 95 no chance. As a first time buyer you'd have to be on 30k per year (assuming you had no savings or assets) or 25k for a 4X morgage Most peeps around my age aren't on that. i'm not

The irony is that these mega house prices are just paper money. We all end up paying high morgage repayments for what is effectively paper money! Unless you move abroad, effectively cashing the money on seriously cheaper house abroad Someone in my office moved to Spain, had a four bed built from scratch with a swimming pool, and it cost 75k How ripped off do we get

I'm renting and that is even worst, i'm effectively paying off someone else's morgage who was jammy enough to buy the house when they were sensible money to buy, like I would do normally (before anyone asks, I would like at home, but the folks are fairly dodgy )

Estate agents keep us posted please, as I haven't a clue what to do

Aaron1204

Can anyone shed any light on this?

RSrussell

Aaron, take a look on www.rightmove.co.uk and keep on going into your local estate agents, or looking in the property section of the local rag.

They are offered through Estate Agents as "50% shared ownership", some newly built homes have this option too.

I was bloody lucky to be honest. I was going into the local estate agents showing an interest and registering myself as being in the market for a property, then they contact you when one comes available (normally a huge list of people though, so you have to get in quick).
Then one of the agents walks in, with the keys to this place, it hadn't even been put on the market yet, so i snapped it up there and then.

RSrussell

Here is one advertised local to me
http://www.rightmove.co.uk/rm/templa...a_n=1&tr_t=buy

85k is not the true 50% value more like 55% as that house would be approx 160k (so you tend to pay slightly more for the advantage)

JohnnyB

I am going to rub it in. I bought my house 6 years ago in a good area 3 bedrooms victorian terace for 65k, its now worth 236k

I am in the money I am in the money

Aaron1204

how do I search for other shared ownership houses? ones that are local to me? Thanks for this advice btw

RSrussell

I know quite a few old peeps are renting off the council, and have been for many many years. Like my nan & grandad.

If you want to get onto the ladder but not necessarily move out, you could offer to buy their home, they would get around the max 40% discount from the council too

I'm just saving my peenies and may be doing this and let my nan & grandad live rent free for the privalege

RSrussell

Aaron you just get a "feel" for the house prices in said area, then roughly divide it by 2 and run the search based on that info.

Or just look in the local free rag

Aaron1204

so there is no search option for just shared ownership houses? doesn't seem to be any near me

swerv

just so you know if you buy a shared ownership from an estate agents you will have to pay a premium , sometimes as high as £20k IN CASH , so beware. shared ownership has to be advertised with whatever assosiation owns the other % for 30 days before the agents get their mits on it

i would wait matey as you are buying at a very peak time and they are not going to rocket for at least the next year!!

Wazzzer

Hardly any shared ownership houses comne up over here, if they do they're in the sticks.

I know this Island ain't that big, but the traffic is unreal sometimes and theres nowhere for it to go, which is why we wanna stay in the town where we both work

Wait and see I spose

markk

iTrader: (2)

if you are so determined to get a house these days then you have to move to an area that has these cheaper properites , they are out there , you just gotta be prepared to move for it !

Aaron1204

yeah you're right, I think thats my only option at the mo, but won't be buying if there is gonna be a big crash

martinrs500labatts

hi,

dont know where some of the prices come from, in southampton. its £120k for an ex council house,

two bed maisonetts are 130k

bought my house as a shell, complete shit hole 1930s bungalow, never modderised , three years ago, and that was 165k

people not on the ladder know i would recomment waiting a bit,as prices seam to have leveled, and if anything will proberly fall slightly.

swerv

there wont be a big crash , but imo they will slowly come down , there are preventative measures these days to stop crashes happening again so dont hold your hopes on that .

houses in windsor are so expensive so i feel for you mate

Aaron1204

tell me about it, 150k at LEAST if you wanna live round here

RSrussell

If there is a "crash" (which i very much doubt) then yes the prices may come down, but the interest rate will be so high your monthly outgoings will be more than your wages

Current base rate 4.75% (£500 per month on repayment at 4.99%)

Oct 1989 14.875% (crash) probably around £1500 per month on a similar deal

Your best bet is to save as much as you can for a deposit, then crash or no crash, your in a much better position either way

Aaron1204

yeah, i got 6 or 7k comin along soon so that should get me started

AndyGranger

Mine has just gone up for sale this week
So if any one want a 2bed town house in a nice area of Nottingham close to jct26 let me know
£104,950

RSrussell

You want 5% as an absolute minimum that would be 7.5k based on 150k, so your getting there

©hatter Box

its cheaper to buy some land and build ur own house and its worth 3x what u payed out but its a night mere trying to get ur 1st place that y lots of people move out of london to mk and the coast and other places but if u go to far out some people resent u if ur from london and its hard to get a job and so on