Can anyone give me some information about shared ownership?
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I've heard it is a good way to get onto the property ladder without needing a large deposit. Could someone please explain how it works and whether there are anu disadvantages?
susanna
1 year ago
Expert Financial Adviser Answer
John Stirling
answered 1 year ago
Probably the best place to start is here;
http://www.direct.gov.uk/en/HomeAndCommunity/BuyingAndSellingYourHome/HomeBuyingSchemes/DG_4001347
That explains a number of the schemes currently available, as well as providing a fairly good generic explanation.
What will be available to you will depend on your local area, and you may need to contact some local housing associations to get a better idea.
I would caution that buying just to 'get on the ladder' may have been a good idea once, and may be again, but is unlikely to deliver much value in the current environment unless there is a fairly dramatic recovery in the fortunes of the property market, so if you are thinking of buying your first home, make sure it's for the right reasons (security, continuity, having a 'home') rather than because it will provide a juicy financial return - you might have to wait a long time for that.
You asked about disadvantages; well only the obvious really, you will have a more restricted range of possible mortgage lenders, and may find that the housing association puts obligations on you regarding maintenance, but these are unlikely to be significantly more than a mortgage lender, and of course if the property does shoot up in value you have to share that profit - but I wouldn't worry too much about that one if I were you.
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http://www.direct.gov.uk/en/HomeAndCommunity/BuyingAndSellingYourHome/HomeBuyingSchemes/DG_4001347
That explains a number of the schemes currently available, as well as providing a fairly good generic explanation.
What will be available to you will depend on your local area, and you may need to contact some local housing associations to get a better idea.
I would caution that buying just to 'get on the ladder' may have been a good idea once, and may be again, but is unlikely to deliver much value in the current environment unless there is a fairly dramatic recovery in the fortunes of the property market, so if you are thinking of buying your first home, make sure it's for the right reasons (security, continuity, having a 'home') rather than because it will provide a juicy financial return - you might have to wait a long time for that.
You asked about disadvantages; well only the obvious really, you will have a more restricted range of possible mortgage lenders, and may find that the housing association puts obligations on you regarding maintenance, but these are unlikely to be significantly more than a mortgage lender, and of course if the property does shoot up in value you have to share that profit - but I wouldn't worry too much about that one if I were you.
susanna
answered 1 year ago
Thanks this is very helpful. And I'm looking because I'd like to own somewhere rather than renting so will not be too disappointed if it doesn't shoot up in value!
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Expert Financial Adviser Answer
John Stirling
answered 1 year ago
It sounds like you are approaching it all with the right attitude, and I wish you the very best of luck.
Find a local IFA or independent mortgage broker to source the loan, as it could easily save you a lot more than it costs.
If we are local fee free to call.
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Find a local IFA or independent mortgage broker to source the loan, as it could easily save you a lot more than it costs.
If we are local fee free to call.
Expert Financial Adviser Answer
John Stirling
answered 1 year ago
Hmm, that should be 'feel free' of course - as independent advisers we can't say things like 'fee free' even if it's a typo!!
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