Shared Ownership Buying?

[devilsadvocate]

There have been some new flats been built up the road from me. They are being sold as Shared Ownership, which means you pay a monthly morgage for a 30% share of the flat and monthly rent on the remaing 70% that the company own.

I worked it out and i would be saving money each month as it is less than i am paying now for renting. I know its only 30% but its a step on the housing ladder. The flats are near the centre of town and on the same road as a primary school and two secondary schools.

I just wanted to know if anybody has purchased a house/flat under this scheme and could answer a couple of questions and maybe give some advice.

Thanks

[Amiee]

Iv not long brought a house under a similar scheme... I personally think its a great idea and worth looking into alot more!

[Barry123]

just out of interest.... what happens when you come to sell?

[smiith]

just out of interest.... what happens when you come to sell?

you get 30% of what u sell it for? ;)

thats the catch aint it, they have rent comin in from you, then they have a lump sum when you come to sell

rather that or someone else buys your 30% and pay rent again

[Barry123]

i see. so someone else buys that 30% stake then continues paying rent also?


do you pay mortgage and rent at the same time, or just mortgage then once the mortgage is paid off you pay rent.

seems a bit whack tbh.

[devilsadvocate]

You own 30% (or more) and the company that own the development own the remaining share. You may a morgage price on the 30% and rent on the other 70%


You can also purchase more than 30% at a later date. Like if you get a payrise of promotion at work.

There would be two double bedrooms. I wanted to know if i could have a flatmate? Does anybody know

[Amiee]

No they dont get the lump sum of when they sell.. the 30% goes on the market not the whole house itself

[Barry123]

There would be two double bedrooms. I wanted to know if i could have a flatmate? Does anybody know

you own 30% of it dude, you can do what you want.

i lot of people get flat mates and stuff

[Amiee]

You would have to delcare it with the housing association, orrrr just go in with a mate from the start

[devilsadvocate]

Thanks for the help. To be honest i have never bought a house before. It mentions needding £3500 available to cover solicitor fees etc. Will i really need that much?

[Amiee]

My solicitor fees where around the 1k mark, as i needed two lots of docs, one for mortgage and ownership and then one for the rent side of things..

But then if you wish to put down a deposit too then you will need the money for that.

[devilsadvocate]

Brill thanks for that. So are solicitor fees the only outlay when it comes to buying, other than the actual cost of moving in obviously?

[Amiee]

Erm mortgage fee, if you get a mortgage advisor fee, solicitors, then the stamp duty if it has one.. think thats about it

[middleweight]

i still dont get it... do you pay rent and mortgage at the same time?

[devilsadvocate]

OK.. The flat is £124k for a 2 bed, first floor.

I buy a 30% share (£37k roughly). I pay £250 (roughly) for the morgage on £37k and then £200 for rent on the 70% the company own. Total monthly outlay would be £450 (roughly) and i would own 30% of the flat. I could then buy more shares at a later date...

Cheaper than my rent atm and i would own some of it as opposed to paying somebody elses morgage like i am at the moment.

These are brand new flast btw

[Amiee]

Well i own more than 30% and i dont pay more than 450 a month with rent and mortgage.. would think your mortgage would be alot less.. if spread over the average mortgage length 25-30 years

[devilsadvocate]

These were figures quoted in the brochure based on a 5.9% morgage..... I would love them to lower but have got a few quotes online and morgage price seems to be about £250 on all of them

[Amiee]

oooh strange.. mines on 6.5% and my repayments are 350 month on double the mortgage, then rents practically nothing

Still if its less than your rent now, id say its worth going for.

[devilsadvocate]

That is rather bizarre. Who is your morgage lender?

[middleweight]

is the amount of rent you pay a fixed amount?

[Amiee]

Yeh fixed repayment for 2 years... and its with nationwide

[b0t13]

wouldnt it be better to pay more mortgage and less rent then, as ull own more of the house?

[devilsadvocate]

Just done a nationwide calculation on the website

£37000
2 years fixed
30 years

came to £230 roughly

[Amiee]

If thats what there saying then cant agrue lol, just strange

[devilsadvocate]

Thanks for your help Amiee, much appreciated x

[middleweight]

im gonna look into this aswell

[Amiee]

Nps, Just think its deffinatly worth doing if you cant afford a full mortgage and for first home too :)