My Shared Ownership experience: Alex talks about selling her Shared Ownership flat

[@SelfInvested]

IMPORTANT tip for shared owners. Before paying any additional fees to your housing association for selling your home, check whether your lease states that you are responsible for these costs. If it doesn't, then you may legally be able to push back. I've been informed that sending a firmly written letter to your housing association can help to stop these charges. Source: twitter.com/londonLyns/status/1358371450646839298?s=20 If you are unsure, get professional legal advice.

[@rayhan15243]

Housing associations need to be regulated. It’s an absolute disgrace how they currently operate.

[@SelfInvested]

Believe or not, there is actually a social housing regulator and a housing ombudsman. I think the problem is that under the current Shared Ownership rules, set by Government, they are allowed to do what they are doing.

[@ayoadeyo]

Such an insightful video! It’s the first time I’ve heard directly from someone who has experienced and sold a shared ownership flat. Thank you both!

[@SelfInvested]

You're welcome, Ayo! And I'm also grateful to Alex for sharing her experience 🙏🏿

[@Sharon-fc6lz]

This is the most clearest video on the selling process of a shared-ownership property I've ever seen. Didn't realise there were so many hoops you have to jump. The numerous fees and costs sound like a nightmare, it really builds up.

[@AbiChow]

Just started this video and decided to pop into the comments to say I made a video a couple of days ago talking about all the UK rental schemes (Intermediate rent, Rent To Buy etc) if anyone's interested. Obviously watch this video all the way through first 😊 And thanks for the great informative content you're always serving 🙏🏾

[@SelfInvested]

Haha! Shameless plug! Great video btw! I've done a video on Rent to Buy but don't think there's nearly enough content about renting on YT. It's an area I'd like to cover as well!

[@SelfInvested]

*meant to say ‘not nearly’!

[@AbiChow]

@@SelfInvested Totally shameless 🙈 but if it helps the peoples I'm okay with being a little shameless haha (I actually never plug my videos in comments 😂)

[@SelfInvested]

I like your channel so it’s cool 😉

[@AbiChow]

@@SelfInvested Yay thanks!! 😄

[@jefffranklin4023]

Amazing content! These are the conversations that we need to have more often.

[@SelfInvested]

Thank you, Jeff! Yes, I agree. My hope is that many will learn from each interviewee's experience...

[@ChikaW]

This was a rollercoaster ride! Alex, thank you for sharing your story.

[@SelfInvested]

Glad you enjoyed it! And yes, thank you, Alex!!

[@katiethompson4034]

I am in the process of buying a shared ownership flat at the moment and what I would say is read, re-read and read the documents again. Question everything, don't be forced into a decision by the sales reps at the housing association and make sure that every decision is the right one for you. So far my experience has been positive. Stressful? Yes, but every home buying process is stressful. If it works for you, go for it :) SH is the best option for me right now! I would be more than willing to feature on this channel about the buying process!

[@SelfInvested]

Hi Katie, thank you for sharing your experience, and you are absolutely right, it's important that you do your homework before making such a major decision. Thank you as well for your offer to share your story. Can you drop me an email ([e-mail]) or add me on IG (@SelfInvested_UK)? Also, can I ask whether you are buying a Shared Ownership house or flat?

[@katiethompson4034]

@@SelfInvested I am buying a flat, I will follow you on IG

[@SelfInvested]

@@katiethompson4034 Awesome!

[@TheWellnessAbbey]

Gosh- her experience is mindblowing! Thanks so much for sharing this discussion!!

[@SelfInvested]

You're welcome! Her experience was way too stressful! I'm just happy she's able to laugh about it now!

[@gerrywhitewhite]

Thanks for making this video. This was very similar to my SO experience. Selling was an absolute nightmare (the resale market is non-existent in London, one viewing in 10 weeks), then on the open market it took over a year, and I made a 3% loss on it. But I was so glad to be done with it. I was so blinded by the idea of being a homeowner I ignored the warning signs. There are better ways to get on the property ladder.

[@SelfInvested]

Sorry to hear that. I hope these videos will help to make people more informed before going into schemes such as Shared Ownership

[@WinterMSP]

can i just ask what your plan was after shared ownership?

[@lildoc]

This was by far one of the best discussions ever on shared ownership. Quite an eye-opener! Thank you!

[@SelfInvested]

Thank you! I appreciate your comment! Are you consider the scheme for yourself?

[@lildoc]

@@SelfInvested Not after watching this video haha Don't want to share with the housing association or even with the gov't (HTB scheme). I would rather wait for the '5% deposit' scheme to roll out in April this year and just buy the whole property outright if I can.

[@SelfInvested]

That would be my preference!

[@belfastbornstephen]

Guy’s thank you so much for sharing this it’s been such an eye opener, my son is looking at shared ownership and this information has been invaluable I can’t thank you enough. All the best to you both.

[@SelfInvested]

You’re welcome, thank you for watching. I have loads of videos on the scheme. You can check them out on my channel page. Hope you find them useful ;)

[@PresentingReality]

Ah bless you Alex thank you both for sharing. Sorry the experience wasn't great for you Alex. This is something that I really needed to hear. Great video.

[@SelfInvested]

I’m glad you found it helpful! Are you a shared owner or someone considering the scheme?

[@kayaj8972]

Thanks for this. I’ve done shared ownership 50% since 2006 and I’ve wanted out for almost 7yrs though never fully committed because it is stressful. Covid has made me very committed not to avoid pushing ahead and I’m hoping to sell within 12mths. Thanks for sharing. I too intend to rent due to the trauma of it all. I have discouraged all who ask to save up a bit more and stay away from the stair casing options.

[@SelfInvested]

You’re welcome. Thank you for watching! I hope things go well with the sale of your place. If you do buy again, you’ll probably have a better idea of what to avoid with flats

[@WinterMSP]

can i just ask what your plan is after shared ownership?

[@reneerobinson5273]

L&Q is an awful housing association, they are so unorganised. So I bet that didn’t help at all. But this is a really good insight into how shared ownership works. Apart from all the rubbish at the end when wanting to sell its a good way for people who aren’t able to buy outright to buy a property.

[@SelfInvested]

Yh, I agree. The housing association wasn’t great, but the Shared Ownership scheme is flawed in a number of ways. Check this video out: kzbin.info/www/bejne/iGPPlqZsjtGYY6c

[@linda7251]

This had been so helpful. Thank you so much for sharing your experience, as I am thinking of selling as I just can't afford full ownership, and I know it's never going to happen, looking into other options!

[@rmmr559]

Just saw this video and the information is so great. Usually flat sales take 3 months minimum as the freeholders drag there heals with the management pack.

[@SelfInvested]

Thank you! I’m glad you think so! Yeah, the more parties involved, the longer things take...

[@makeonesselfbetter5635]

This was a great interview, I enjoyed listening to her story. Please make more like this!

[@SelfInvested]

Thank you! I'm uploading another today!

[@tinygoof]

This was such a great video!! It was really insightful, I can’t believe how long, expensive and difficult the process was to sell her property especially considering the purposes of the scheme. Really enjoying your channel, thanks!!

[@SelfInvested]

Thank you Tolu! I'm glad you enjoyed watching. You're right, the scheme is supposed to be more affordable, but selling your Shared Ownership home can be more expensive...

[@sense1983]

Hi Alex, I’ve been in the process of selling my 50% shared ownership for the last 8months!!!! We’re now at the stage whereby we needed to make another valuation, this has happened literally days before the exchange of contracts!!!! We’re heartbroken because the price has changed and the flat was valued at a completely different price, which means everything is at risk of falling through! The HA said they will ring the surveyor and ask for rational behind this, I just don’t know how much they can negotiate on our behalf and what this means for our buyers mortgage application (starting from scratch?). Nightmare to say the least.......... we’re completely done

[@SelfInvested]

I'm sorry to hear that. I hope Alex was able to help!

[@sense1983]

@@SelfInvested and yes, she’s been a great support , thanks x

[@SelfInvested]

@@sense1983 Ah, good! Happy to hear that!

[@vicade4112]

Very interesting and helpful insight 🧐 Thanks very much Alex and Lemuel

[@SelfInvested]

Our pleasure! I'm glad you found it useful!

[@mf732]

What a great story and experience.

[@SelfInvested]

Yes it was! I'm glad you found it interesting!

[@adenikeoke6763]

Great video! Very insightful. So far you are a bit better off with shared ownership house than a flat. Leasehold flats are just horrid with charges. Tip- Help to buy is already putting in the leasehold reforms that ground rent/estate charges are no longer applicable to property as of Dec 2021.

[@SelfInvested]

Thank you as always! I think you mean December '2020', right? It's a positive change to the Help to Buy Equity Loan, but it's not clear whether this extends to the Shared Ownership scheme.

[@adenikeoke6763]

@@SelfInvested yes Dec 2020! Very positive indeed. I have seen some developer already saying zero ground rent on SO properties! I suppose the change is inevitable so they are tagging along because there is still a lease involved. Buyers can mention to the developer earlier on that their leases should not attract ground rent (whether new or resales) I believe anything can be negotiated and its best to get the conversation going early on. 👍🏼

[@olawumiademokun1106]

This was really insightful!! Thanks for sharing this discussion

[@SelfInvested]

You're welcome! I'm glad you found it interesting :)

[@TheHolden576]

I have been looking into the shared ownership scheme for a while now and to be honest the more I research the scheme it’s becoming less attractive. But as a single person earning 32k buying outright I would need a huge deposit 😩😩😩

[@SelfInvested]

Don’t get me wrong the scheme does work for some people. The main thing is to do your research, weigh up your options, do some number crunching and see if it works for you. I think a big problem with the scheme is that people sign up to it without having a good understanding of how it works...

[@TheHolden576]

@@SelfInvested I agree...for me I personally would like to use one of the schemes to help me get my foot on the property laser and hopefully gain a return on my investment. So budgeting and long term goals I think help to buy is a better option 🤷🏾‍♀️

[@SelfInvested]

Make sure you buy a good property in a good location on good terms. I think I prefer H2B over SO, but H2B homes tend to be more expensive and there’s is a higher barrier to entry because the biggest loan you can get is 40% in London, whereas you can buy just 25% with SO

[@WinterMSP]

i'm only earning 17.5k a year, im saving for a 40k deposit and im worried about what my mortgage would be. Im looking for a sharred ownership 1 or 2 bed flat around 90-120k

[@SanTa-wk4ld]

Shared ownership is a scam, plain and simple!

[@SelfInvested]

it’s difficult to argue with you!

[@martinwalker7452]

It is

[@fungirl0123456]

I am very keen to get on to the property ladder but honestly shared ownership is very scary. Especially as it is really one of the main schemes being pushed in London right now. One tip I have heard is only buying the minimum share where possible. Anything higher then 40 and it is very tough to sell. Intermediate rent btw can be found on the share to buy website. They charge you 80% of the market rate. I have tried to get on the scheme many times but it is extremely competitive.

[@fungirl0123456]

One last thing. If her mum had bought and sold properties in London why not sell to her daughter or help gift her daughter money to buy a property outright?

[@SelfInvested]

The thing is you can't choose to buy a lower percentage than you can afford. The housing association you buy from will say you need to buy the maximum share that you can afford. I wouldn't use the scheme if I wasn't sure about it because it's a big decision to be unsure about.

[@fungirl0123456]

@@SelfInvested yeah I had no idea that you couldnt choose the percentage that you wanted to buy at. This is not talked about enough. I've subscribed. Cant wait to your next video.

[@SelfInvested]

@@fungirl0123456 Can’t wait to share it with you!

[@alj2301]

Excellent, thanks to both of you!

[@SelfInvested]

You are very welcome!

[@nicolagolding3281]

Share ownership is very stressful.

[@SelfInvested]

It sure sounds it!

[@saz6511]

It sounds it. I’ve been put off completely now. The one I was looking at was in one of the most affluent areas in Manchester but service charge was absolutely ridiculous and the flat itself was so small and probably not very well made like a house would be.

[@Aksamsons]

Shared Ownership schemes are awful and a trap for the young or naive. If you go into these schemes when young by the time you meet your other half have a child and realise you need a 2 bed, you will find it near impossible to leave without making a loss in London. Many will be trapped as remember the HA has to find someone who can AFFORD to buy your flat in London (and wants a HA as a landlord) which is these days unlikely. The HA waste so much time having first dibs at trying to find a buyer wasting your time as their skills in this are are poor. What people don't realise is these HA are multi million-pound businesses and they are there to MAKE MONEY and use the income they make from SO to fund their rental properties. They are not caring and sharing and have not much interest when you come to sell. Worked for one for over 18yrs so understand what goes on behind the marketing brochure.

[@SelfInvested]

I think you're right, unfortunately. Although Shared Ownership is supposed to be an affordable housing product, housing associations see the scheme as a revenue stream to fund their other activities - robbing Peter to pay Paul!

[@Aksamsons]

@@SelfInvested Exactly, there is a hierarchy of who gets treated the best it goes Freeholder who pays ground rent, Then multi leaseholder, then single leaseholder, the renting tenant, then shared ownership tenant. Definite revenue stream. When it comes to selling have diary dates (and the time line of teh process and ask them to send it to you too) and be on top calling and emailing them regularly follow up with emails so you have a trail, Behind the scenes, their administration is a mess with temp staff and high staff turnover and no one wanting to take responsibility for things. If you make a loss due to their incompetence and delays and can show it with an audit trail write a strong complaint (make sure you label it complaint or they mark it inquiry or some rubbish, then email and post it in) and ask for financial compensation and cc in the cheif exec. They will bend over to assist you.

[@ChrisLitton]

I see what you mean to a point. Was having an argument with our mortgage advisor over buying a 1 bed outright in SE London. Problem is with a child and limited deposit saved their are few options

[@slavmarin7827]

thank you - very honest - very helpful

[@SelfInvested]

You’re welcome 🙏🏿Thank you for watching 👍🏿

[@mr-kl7or]

Oh yikes, Walthamstow it’s ridiculous prices for share to buy.. I have friends who have done it in area like Harlow with low rate etc. I looked at it in Harlow, with 65 percent and I’m happy .. i never intend to stair case or buy it.. in reality I will never be able to afford a full mortgage and I feel a little more secure ,, renting I can’t get kicked out and councilI can get moved around the country ..the rent is 180 a A month , yet is could go up but, if I was in a council house I’d still be paying rent when elderly. All swims and round about, it’s so Important to ask about cladding too.. I no people who have new builds not on the program.. their unable to sell them

[@SelfInvested]

Thank you for leaving a comment! You're right, everyone's situation is different. People need to do their research and perhaps get professional advice to check if the scheme is right for them. I just hope these videos help people understand the scheme better!

[@TheRoxStarlet]

Very interesting video. Myself nd my husband are looking to do this scheme so this has been very insightful. Its seems a lot of the people who have most of the difficulties with the scheme have bought flats. I live in the south west and most of the shared ownership properties are houses, so stuff like service charges and ground rent might not be included, therfore making the schemes a bit more attractive?!

[@SelfInvested]

Thanks Rox! Yes, I'm sure the general experience of someone with a Shared Ownership house is much better than someone with a flat. It will probably also be easier to sell, as houses are generally more attractive than flats. However, depending on how much of the property you buy, it may be harder to sell to another shared owner, and you may have to sell on the open market, which will be a longer and more expensive process.

[@nfornneka]

Also houses can be sold as leasehold

[@samrazakir]

The whole process seems complicated and convoluted, did she still lose money with her share ownership route (buying and later selling) compared to case if she had rented through out that period?

[@SelfInvested]

Yes, it turned out to be an extremely long process! She ended up making a £500 loss after selling her flat. She was renting a place for £1,400/month before she bought her Shared Ownership flat, which cost her £1,300/month (including mortgage, rent and service change), so she was still probably still better off financially overall. But the financials of the situation don't account for the stress she experienced. Also, she is now renting a place for £1,100/month.

[@evangelinamiles3249]

Thank you for this video ❤

[@raymondchidothe5282]

All them charges! Robbery for sure

[@SelfInvested]

I know, right?! And it's supposed to be 'affordable housing'!!

[@ndiekwere6027]

this was so insightful thank you.

[@SelfInvested]

You're so welcome! Glad you found it useful :)

[@Diamat1917]

27:00 She did not have a clue what she was doing and ended with nothing, back to renting. She definitely did not staircase to 100%. When you staircase to 100% you extend the lease by 90 years at a nil ground rent.

[@SelfInvested]

She actually chose to go back to renting because she was unhappy with her flat and wanted to travel (which she explained later on in our chat but is not in the video). Staircasing to 100% and extending the lease of a property are two separate processes, but I have heard of them being done in parallel. If you staircase to 100%, it doesn't automatically mean the lease gets extended. The staircasing process that happened when she sold was to enable the buyer to buy 100% of the property.

[@samiulislam5918]

Hi Alex - is there a sweet spot like 40% of stair casing as a maximum which is still affordable when reselling?

[@yoanamiteva7082]

What a nightmare so many expenses 😱😨

[@SelfInvested]

I know, right?!

[@Kharbotli1]

Hey man , thank you very much for those videos, I'm about to get HTB flat and your videos have cleared few things for mw I have question not sure if anyone can help with that is it better to buy the flat from the developer or estate agents?

[@SelfInvested]

You're welcome CK. I'm you enjoy the content. TBH, I'm not sure hopefully someone that sees this message can answer, but do know developers do sell flats through estate agents as well. If the developer sells it through the estate agent, you're still buying from the developer who is essentially the vendor - the estate agent is only the middleman...

[@yogawithchafik2932]

@@SelfInvested Thanks man

[@shayb1552]

Hi, quick question. So I’m looking at buying a shared ownership property with 60% share. So I know the cons and pros however the difference between my property is the housing association is the council therefore they’re not going to do things like sale the freehold etc. The house is at a discounted price from other property’s in the area which have well known housing associations. I believe that shared ownership is only a problem is you want to sale or if your salary doesn’t plan to increase which mine does. Do you think it would be wise by buy the property and staircase to 100% as soon as possible because like I said it will be cheaper than other apartments in the area.

[@SelfInvested]

Are you buying a Shared Ownership house or apartment (flat)? Are you sure the price is discounted? The full price (100%) of a Shared Ownership home tends to be cheaper than an equivalent home sold privately by estate agents/developers - I think this is because Shared Ownership homes have to be sold at market value (determined by a surveyor), whereas privately sold homes try to maximise the price whatever the true value is. I'm not sure I can comment on your situation, but, generally speaking, if I could buy a home without the Shared Ownership scheme, I would because staircasing can workout more expensive than buying outright (even if the price at the start is lower). And if I did buy a home through Shared Ownership and I seriously wanted to staircase to 100%, I would do it as quickly as possible because house prices tend to rise over time. Have you looked going for an existing property instead of new build?

[@shayb1552]

@@SelfInvested Yeah there’s been new build apartments in the area built at the same time and they are much more expensive however they are with the big developers. Thanks for the info. I’ve looked at buying an existing build however there is not many in the area and location I’m looking for that I like. I could wait rent save up more and buy a full property however I’m tired of renting I’ve had mold problems in past two rented houses and landlords just don’t care

[@yoanamiteva7082]

I am pretty sure right now that shared ownership it's mouse trap. It's impossible for a single person to buy the 100% of the property at the end

[@SelfInvested]

It is difficult and most single people will be unable to, but it possible. You do need a few things to go in your favour, however...

[@yoanamiteva7082]

The housing association won't be honest with the truth about the selling process

[@SelfInvested]

Yeah, it's not easy when you have so many parties involved...

[@princeosamking]

Quick question, if you was complete the 25% share ownership, and then you pay off the full market price of the remaining 75%. Will you be able to rent the property since you own 100% of the property now?

[@SelfInvested]

It depends on the terms of your lease. But generally, yes. If you own 100% of your property, you can usually rent it out.

[@mattw8332]

Wow, what an ordeal!

[@SelfInvested]

I know! Thankfully she’s out of it!

[@gregoryngoy4649]

Very good informative video.

[@SelfInvested]

Thank you Gregory 🙏🏿

[@gailgrayson5654]

Hi, what housing association is it?? I’m looking to sell my own shared ownership property. Hopefully open market

[@SelfInvested]

I believe she said L&Q in the video, but will need to double check...

[@gailgrayson5654]

Thank you. I was hoping it was Optivo. Have you got an videos of Optivo selling process??

[@SelfInvested]

@@gailgrayson5654 Sorry, I don’t but I would expect the process to be fairly similar. Are you looking at an Optivo property? You could ask them directly...

[@Linda-rz3yo]

So I am about to enter into the scheme can you backout of it when you start renting? If so do they charge you anything for it ? Like keeping the saved money?

[@SelfInvested]

Hi Linda! Best to read your contract to see what it says. If it is unclear, you can ask your housing provider to clarify. Did you decide the scheme wasn’t for you before or after watching this video?

[@vincentelhoste]

Hello, thanks for this videa! Do you think that it would have been easier for her under the new Shared Ownership scheme?

[@SelfInvested]

The only difference under the new scheme, as I understand it, is that instead of having to wait 8 weeks to take your property to the open market, you'll only have to wait 4 weeks. I'll double check, but I think that's it...

[@cleosolomon9959]

Could you please let me know what was your orginal deposit that you paid for your property in Essex ?

[@SelfInvested]

Not sure. I'll ask her for you

[@MaskedMono]

I must be missing something. Didn't she say her mom has been doing property for many years? And yet she was clueless about the procedures and made so many mistakes.

[@SelfInvested]

We all make mistakes, bro. She was sharing hers to help others...

[@MaskedMono]

@@SelfInvested yeah I appreciate that, I'm not trying to bash her. I just don't understand how her mom was a property developer but didn't pass on any knowledge or maneuvers to navigate properly. Seems very strange. On KZbin you're gonna get questions and skeptism like from me and others. That's how life is.

[@SelfInvested]

No problem. She said she’s happy to answer questions, you can find her IG in the description

[@face-in-the-crowd]

Omg, this sounds like a nightmare

[@face-in-the-crowd]

At least she's out now

[@SelfInvested]

Yes, thankfully!

[@anthonyhui1010]

London is full of real estate traps! Places like Manchester and Leeds are just much cheaper and friendlier.

[@SelfInvested]

In terms of Shared Ownership, or just generally?

[@anthonyhui1010]

@@SelfInvested generally... London's just expensive and you can easily make mistakes while transacting in real estate. In 2017 I was going to buy a shared ownership one bedroom apartment in London which has already been 100% staircased, but there was a clause in the lease prohibiting leaseholders from letting it out for more than six months at a time. I decided not to buy it in the end. I almost missed out on that particular clause while reading the lease. I basically almost bought the wrong thing.

[@anthonyhui1010]

High real estate prices also equate to higher fees for the agents and lawyers etc. not exactly for the faint-hearted.

[@saz6511]

Manchester is now on a par with London because everyone keeps moving here 🤦🏻‍♀️😂

[@anthonyhui1010]

@@saz6511 I would love to move there myself and experience it! honestly i know London all too well

[@michelep1489]

@selfinvested Do you think a lower share value is more attractive when selling, due to the lower deposit needed for the buyer?.... or do you think its better to buy a larger share ( if salary allows)???

[@SelfInvested]

It depends on a number of factors, but in Alex’s situation, she found that Shared Ownership homes with a smaller share were easier to sell. Also, housing associations get you to buy the largest share you can afford, so you can’t necessarily buy a smaller share even if you wanted to

[@philly1076]

i wouldnt touch share to buy, no point.

[@SelfInvested]

I don't blame you!

[@Ncccc815]

Shared ownership is a scam… don’t buy shared ownership

[@SelfInvested]

It has worked for people. The important thing is to do your research and weigh up all your options!

[@Ncccc815]

@@SelfInvested I say rent somewhere that is reasonably cheap and save up money even if it takes 10 years , work hard at work and increase ur income and then buy a house or flat 100% outright… home ownership is hard work

[@yoanamiteva7082]

How much money she loose from day one she try to sell?

[@SelfInvested]

In terms of how much she bought it for and spent to sell it, I think she lost £500...