Shared Ownership Properties

[Trotster]

Hello

Long time no post!

Has anyone here ever bought a shared ownership property? Buy this I mean the Goverment Scheme and not with friends/girlfriends etc.

I am looking in to mortgages and such like and was just wondering if anyone had any experience or knowledge on either the scheme itself, or who is best for the mortgages (there are a limited number of companies that offer these and often at a higher rate)

Thanks in advance

 

[Rangdo]

Hello

Long time no post!

Has anyone here ever bought a shared ownership property? Buy this I mean the Goverment Scheme and not with friends/girlfriends etc.

I am looking in to mortgages and such like and was just wondering if anyone had any experience or knowledge on either the scheme itself, or who is best for the mortgages (there are a limited number of companies that offer these and often at a higher rate)

Thanks in advance

My sister has got a shared ownership property as part of the key-worker scheme. I think she owns 40% and they own 60% or something like that. I think her mortgage is with the Halifax.

 

[disgruntled h blocker]

I have a shared-ownership flat in Winchester, one of the only ways for a person to get their first step on the property ladder here! You need to be careful how much rent and service charges the housing association charge, and some of them whack the costs up to not really make it viable - something like £300/month on top of mortgage payments on a £120,000 share in a flat!

It's sometimes better to look at a previously-owned market for shared ownership properties as they sometimes have better terms. For example, when I looked for one, I was offered a new flat by the train station for £120k for 50% and then £300 in rent/service fees. Managed to find one in central Winchester for £92,500 for 50% and only have to pay £100/month in rent(£60)/service fees(£40), where the rent is capped against inflation, so very reasonable. The price has recently increased in my half, and my neighbour sold his share for £112,500, a year after I got mine.

I did find communicating with the housing associations a real pain, especially when buying the property, as they did not supply any marketing details about the flat I ended up getting - I ended up doing all the footwork myself, measuring it up, finding out tax rates as well.

Then you have servicing and maintenance costs. I have recently had a bad damp issue in my bathroom, of which isn't covered by the housing associations maintenance agreement. Thankfully it's been covered under the building insurance which is included in the service charge.

The building quality of these properties is of standard new-build type, but they do tend to be built to higher energy efficiency ratings - to the entent I don't really need the heating on at all!

In regards to Mortgages, I got a bog standard 10 year fixed from Nationwide for 5.18% (got Dec '06). You can also get around not paying stamp duty as well...