Shared ownership schemes in the uk

My take on shared ownership schemes is that it can be risky, if you dont have a plan/ strategy to buy the rest of the prperties shares you could potentially be putting yourself at risk of repossession.
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[@bryantharani6730]

I work for one of the biggest estate agencies in the country. We sell a lot of shared ownership apartments, and we outsource the financial assessment. Most people buying shared ownership will default on their payments in the next 5 to 10 years, and many won't even be able to staircase( buy the remaining share ). Many buyers have not done their homework properly. Reselling shared ownership apartments are quite hard , most of them do not come with parking. The property will go back to the freeholders ( housing association). Ask plenty of questions, speak to experienced mortgage advisors ( no the young mortgage advisors), and ask questions to people who have bought shared ownership years. And listen to your intuition !!!!! People do not listen to their intuition anymore. They follow a trend 😂😂😂

[@ASMR-XI-ZUI]

Does the shared owner still have the money they put in, if unable to pay?

[@Tdr-jv2nc]

We recently brought 100% of our shared ownership home. Yes there are fees etc but we would not have been able to buy our place at the start.for us the scheme has been a good thing but I have heard some people say it’s not worked for them

[@Nicheadvice]

Thank you for your comment yes of course everything is down to individual circumstances and obviously when people purchased the property at first it certainly makes sense the whole point of shared ownership is as I mentioned having a plan to get out of it as soon as possible and try to staircase and buy more share in this way you can take advantage of the benefits as well as the games longer term

[@Theyplanit]

Some buy ahare but may not have promotion to buy additional share

[@seumatavares6885]

I would like to know what the advantages of share ownership are.Can I one day buy shares in the house?how long can I stay in these houses?please reply me thanks

[@vh1775]

I live in central london and paid £150k for a shared ownership flat 4 years ago. I now have a larger better flat which costs me less than I was paying in rent before.

[@nicheadvise]

Yes shared ownership is very popular especially in larger cities and of course in many cases is better than paying rent however the goal should be to try to buy the remaining share as fast as possible so you can take full advantage of the scheme

[@vh1775]

@@nicheadvise I’d love your opinion and advice on this. In my case my mortgage is £650 my rent is £500 and the service charge is £200. My thoughts are that the rent is so heavily subsidised that I wouldn’t want to triple my mortgage payments to save such a low rent payment. I am currently over paying my mortgage to bring down my LTV when I next remortgage but am considering instead saving for a BTL outside of London.

[@vh1775]

@@nicheadvise my worry about increasing my share is that when I come to sell I will be selling to someone in the same boat as I would have been 4 years ago and that it will make my flat less desirable to them as they will need twice the deposit I did and also the qualifying criteria with shared ownership will exclude them I.e. more then £65k earnings less than £90k upper limit.

[@Nicheadvice]

I've had a few people that are looking at some strategies trying to keep their property going but also trying to let their money grow by another investment ultimately it comes down to risk and reward and your long-term goal

[@Nicheadvice]

Thank you for sharing your position it's great that you've made this work would be interesting to know what your loan to value is right now and what your plans are about staircasing to a larger shard of the property.

[@mcmc2791]

See if you go into shared ownership can you decide down the line with the shared ownership to move to a different property in the location our circumstances have changed we have a 2 story home and due to my wife’s disability a bungalow would be better probably asking a silly question

[@icilmaa]

For the majority it's a trap. This was from someone who works for a HA.

[@orchydeelove4696]

I can't hear much 😢 no need of music 😊

[@bubakarjallo3499]

Thank you for the wonderful idea