Can anyone give me some information about shared ownership?
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?
Probably the best place to start is here;
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. | 12.15.10 @ 20:55
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! | 12.17.10 @ 14:09
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.
| 12.17.10 @ 14:40
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!! | 12.17.10 @ 14:46