Part Rent Part Buy / Shared Ownership.

[306carter]

Been some pretty 'grown up' threads on here of a late so thought I'd post one.

Me and my girlfriend have been saving a deposit for a house now for around 3 years. We now have a more than sufficient deposit (15-20%) and are, in my opinion in a good position to buy.

We have looked at houses around £100k and TBH we would be scrapping the barrel. The houses would need new kitchen, bathroom ect in order to modernise them.

This is the thing our local housing association have a development of shared ownership properties available in June this year. Basically £65k for a 50% share in a brand new 3 bed semi. Then £42pw in rent. From what I know you can purchase the other 50% in years to come.

So my question is shared ownership. Pro's and Con's? Done it yourself? Anything I should know ect ect

Thanks.

[Grant]

Not that this is of help, but I would be interested to hear people's opinions in these too. Been considering it myself, but don't have a scooby about them.

[Seb_Ryan]

I've recently bought my first house and was advised against shared ownership.. you have to get permission to change stuff etc.. house I bought was 88k and I had 16k and only had to put 15% down so had a few grand to do kitchen etc.. and over 30 years mortgage is only 307 quid a month..

[Dum-Dum]

I think there can be other charges on top of the rent and I believe the rent can go up too, theres also limitations on what you can do to the house and people aren't as keen on buying them so you may have trouble selling. I looked at them but would never go for them, they are all shitty new builds with no parking, no gardens, tiny rooms and where half the houses are given to scum while those of you who pay have to put up with them. I bought this time last year and

How are you and your other half struggling to pay a mortgage on 80k? I pay mine off over 110K on my own (and only 25 years and only 10% equity).

I bought my house this time last year and struggled to scrape the 10% deposit that was the minimum (the bigger % deposit the cheaper your interest rate). House cost £127,500 and my deposit was £12,750 Meaning I have a mortgage of £114,750 on a 2 year tracker at 5%. Over 25 years I pay £675 a month. One across the road in a similar state with big garden like mine has just sold within days for the asking price of £155k which with what I've paid off by next April would mean I owned about 30% of the house and that puts me onto a much better set of mortgage rates.

One of my mates is paying just 2% interest on his and that would put my payments down substantially but when I re mortgage I'm gonna clear some debt and start overpaying.

Sorry for going off on a tangent.

[Niall]

Why do you all live in cheap areas . Can't even get a 1 bed flat for these sort of prices here

[Dum-Dum]

Place across form me has just gone for £155k Come live here, I'm not that far out of london

[DazzaHDI]

Me and the other half are in the process of buying our own place. We weren't as organised as you and literally thought to ourselves around January/February lets buy a place together lol. We've bought a brand new place directly from Taylor wimpey so there's no worries of renovating etc and we get 2 years customer care and 10years from the nhbc.
The reason we never went I to renting is because your paying for someone else's mortgage and then you've got to still save up, nahhhh.
Shared ownership, I steered clear of as there's hidden this hidden that.
I know we're going to struggle to start off with but I'm looking at extra work, so is the other half etc and I'm sure things will only get better.
It is a scary prospect buying your own place and it's a lot of money but without jumping in you will never know if you can do it.
Good luck anyways

[C.A.R.]

'Houses' start at £160k here. So I'm going to need £8k even for a 5% mortgage (which are surely on the brink of extinction).

I've got another £3k of debt to pay off yet, after that we will start to save. But christ, it doesn't look like there is any light at the end of the tunnel.

[j_carter]

we are looking to get a house around the 200k mark, i personally wouldnt do this share thing. if im paying all this money i atleast want it to be soley mine and to be able to do what i want with it. Be as patient as possible and just get the biggest deposit you can IMO

[Paul_13]

Why do you all live in cheap areas . Can't even get a 1 bed flat for these sort of prices here

Here here!

£180k for a one bedroom house around here minimum

[bashbarnard]

We recently bought uin our village desirable area. £130,000 new build end if terrace with 2 parking spaces and garden. But saying that the price has gone up to around £150,000 based on my neighbours going for above asking price. Win on jumping on the show home for us

[7057sam]

Personally id stay well clear as had a mate who was in one of these and was a absolutely bastard to get out of it.

And the money you pay in rent eqaullys the amount of a 100 percent mortgage

Id go for a 5 percent deposit and 5-10 percent gifted from your bank then you own 100 percent of the house and ant Tired Into silly catches and clauses

[Seb_Ryan]

Tbh the interest rate on a 5% mortgage is a lot. . It was about 6% on a 10% deposit and with 15% it's only 3.2 something % fixed for 2 years, after that it goes up to about 3.6 and you can always re - fix it.

Just FYI my house is a 3 bed, on the end so front back and side garden, parking and only major thing we had to do was kitchen then rest is just decorating.

New kitchen cost 1400 from howdens, that's 11 units 2 x 3.6m of worktops, electric oven, gas hob, extractor and a sink. Oven etc has 2 year guarantee and kitchen units etc itself has 10 years it's just the fitting costs that cripple it but I'm lucky lol

[cpikey316_]

Im on firstbuy, which means one of those awful tiny new builds, its really small inside, but has a 3 car drive and a detached garage with an entrance from the garden too.

Don't plan on staying here forever, so it'll do for now.

I (like dumdum) am about to start the remortgaging process, I am also going to start to overpay. Even a small amount is better than nothing.

I wouldnt look at your first place as a keeper, try to find something for a good few years, then once you've got some equity and a a+ credit rating after all those mortgage payments, you can look at something more suitable. The trick is to find something that stands out from the rest (3 car drive and detached garage for me!)

[Dum-Dum]

The trick is to find something that stands out from the rest (3 car drive and detached garage for me!)

Yeah private car park with space for at least 6 cars in the freehold and the view over fields and shit was mine. You cannot see nay other houses from ANY of the windows of my house