Part buy, part rent
- Thread starter october_lost
- Start date
Kanda
Diving wanker
We're buying now with just a 10% deposit... You don't neccesarily need more than 10% at the moment. You'd obviously get a better rate if you had more but there isn't a great difference in repayments. Then we'll remortgage at the end of the 2 yr term for a better rate.
Paulie Tandoori
shut it you egg!
JRF research found that people living in shared-ownership schemes are unable to move home as easily as people living as tenants or home-owners. This is due to lack of flexibility within the shared-ownership sector and full home-ownership still being out of most shared owners' financial reach.
That said, we took a 50/50 flat on ~10 years ago, as it was the only realistic way to find somewhere reasonably secure to live after 15 years of squatting and short-life co-op living. The rent proportion was just now catching up with the mortgage payments so we're in process of remortgaging now up to 100%, which means that when we sell, we keep all the proceeds. We got 3 bedrooms (cos i had 50/50 care of my kids at the time) and a garden so we're pretty happy with what we have but the quality of build is poor tbf, lots of snagging to rectify faults, a crummy sewerage system, poor sound insulation etc.
That said, we took a 50/50 flat on ~10 years ago, as it was the only realistic way to find somewhere reasonably secure to live after 15 years of squatting and short-life co-op living. The rent proportion was just now catching up with the mortgage payments so we're in process of remortgaging now up to 100%, which means that when we sell, we keep all the proceeds. We got 3 bedrooms (cos i had 50/50 care of my kids at the time) and a garden so we're pretty happy with what we have but the quality of build is poor tbf, lots of snagging to rectify faults, a crummy sewerage system, poor sound insulation etc.
marty21
One on one? You're crazy.
there is a market for shared ownership properties isn't there, so you can sell your share and buy a share somewhere else. Usually ime, the housing association who manages the scheme has 3 months to find a buyer if you want to sell, if they don't get one, then you can advertise it, I think that's how it works
spanglechick
High Empress of Dressing Up
blossie33
trailer trash
Yes, that's how it works.
I have a part buy, part rent flat. It's the only way I could ever have got my own place in London so I am very happy with the scheme personally.
Dr. Furface
One small step for me
Shared ownership was the only way I could've afforded to buy a property and it was great for me. I got a brand new flat (which was my preference anyway) in an area I wanted to live. I was lucky because I bought it when mortgages were easy to get and when I sold it 6 years later - at the height of the market - I made a substantial profit out of it (I feel for the people that bought it off me though as they probably paid more than it's worth now - but at least they did love the flat). And if it wasn't for that me and my partner wouldn't have been able to afford the (private) property we've got now. However, now the market is depressed, it seems to me that the only reason for doing it is if you really want to get away from renting or sharing with other people (like I did), as there won't be big re-sale money to be made out of them for the forseeable future.
Incidentally, I was told by my solicitor that it's not a good idea to buy more than a 50% share (which is what I had) as there's a big risk you'll price the property out of the range of most prospective buyers when you come to sell it.
Incidentally, I was told by my solicitor that it's not a good idea to buy more than a 50% share (which is what I had) as there's a big risk you'll price the property out of the range of most prospective buyers when you come to sell it.
Paulie Tandoori
shut it you egg!
Can't see why that would be - when we come to sell, the HA use their valuer to value the property and we get whatever share of the profit at the appropriate %age.
Further, we're obliged to give them 6 weeks to offer the property to new shared owners. So whether we own 25% or 100%, the price is set and the property is put on the market, and until that time has passed, we can only go on their figures before we could use our own valuer/intermediary.
g force
Affects Shatner's Basoon
Assuming there's a better rate available. I wouldn't assume that at all...rates can only go one way from where they are.
Kanda
Diving wanker
ooooooh!
Brittania (just merged with Smile) are who we are using.
Kanda
Diving wanker
Well yeah, of course. But the downside of a low deposit is paying higher rates initially.
Dr. Furface
One small step for me
Sorry, I probably didn't express that very well. What I (he) meant was that most prospective shared ownership buyers don't have a lot of money when they're looking to buy (obviously, or they'd be looking on the open market). Therefore, if you own 75% (or more) of your property, that's the share that the buyers have to buy off you - and a lot of those wanting to buy won't be able to afford to buy that big a share. However, the majority should be able to find 25 or 50%.
Paulie Tandoori
shut it you egg!
That's what i thought you meant - that's where I disagree (for our HA at least). If we own 100%, any prospective buyer still buys in at a much lower %age and the HA resume ownership of the other %age.
plasticene
New Member
Oh ok, but that wasn't how it worked (at least at that time) with my HA.
g force
Affects Shatner's Basoon
I was in the same boat...actually when looking at it for a 2-year fixed difference was only about 0.23% so didn't lose out too much.
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