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Author Anyone on Shared Ownership?
dannymccann
Member

Registered: 9th Aug 06
Location: Doddington, Lincolnshire
User status: Offline
11th Jan 09 at 10:37   View User's Profile U2U Member Reply With Quote

Anyone actually on the scheme or work with it on a daily basis? Just wondering if its a cost effective way of doing it.

Example of a property

Rightmove = £60000 mortgage / £156p/m rent

Are these properties overpriced at 100% or are they actually a good deal?
Colin
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Registered: 4th Apr 02
User status: Offline
11th Jan 09 at 12:33   View User's Profile U2U Member Reply With Quote

Nope but ive been looking at a few deals recently offering shared equity.

i.e. Builder retains 15-25% equity in the house & you pay for the rest.
You own all of the house & have either 10yrs to pay back the equity share or they get their % of market value when you come to sell.

Not a bad thing imo.

Not sure on the part mortgage part rent thing, theres none of that up here. Sounds expensive though paying mortgage & rent. How do you save on that?
deano87
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Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
User status: Offline
11th Jan 09 at 13:30   View User's Profile U2U Member Reply With Quote

quote:
Originally posted by Colin
Not sure on the part mortgage part rent thing, theres none of that up here. Sounds expensive though paying mortgage & rent. How do you save on that?

It's not the point of saving. It's the point of getting your own house and on the property ladder, by not having such a high mortgage.

It's the same principle you described, but through the council and such.
Colin
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Registered: 4th Apr 02
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11th Jan 09 at 13:40   View User's Profile U2U Member Reply With Quote

Ok save was maybe the wrong word.............swap save with benifit.

Surely if you have rent as an additional outgoing then you wont get as high a mortgage from the lenders as your affordability will be less so will be in a worse position.

At least with the shared equity scheme your not obliged to be paying anything extra. You can leave their share running for as long as you want or pay it IF you want. Your not paying rent every month to live in the house you pay a mortgage for

[Edited on 11-01-2009 by Colin]
dannymccann
Member

Registered: 9th Aug 06
Location: Doddington, Lincolnshire
User status: Offline
11th Jan 09 at 14:09   View User's Profile U2U Member Reply With Quote

That house though for example, around here 100% renting would be £600 a month (maybe more tbh)? On £60000 equity we would need £50000 mortgage, I dont know what I would be looking at repayments a month (capital repayment) but obv that repayment + £156 rent, cant see it being much different to £600 a month?

[Edited on 11-01-2009 by dannymccann]
lisac
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Registered: 10th Apr 08
Location: Lincolnshire
User status: Offline
18th Jan 09 at 16:14   View User's Profile U2U Member Reply With Quote

I looked into this myself with a mortgage advisor and also it was part buy and part rent. Ut worked out really expensive as 50% mortagage repayment worked out 550 pm then £260 rent. Then after you have paid your 35 year mortgage you stilll had to buy the rest of the house, at £550 per month. WHere as if i got a 100% mortgage on the property repayments would of been £750 approx and it was yours after the 35 years.

Couldnt see the benefit myself so opted against it

ash_corsa
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Registered: 15th Apr 04
Location: Shrewsbury
User status: Offline
18th Jan 09 at 18:26   View User's Profile U2U Member Reply With Quote

quote:
Originally posted by dannymccann
That house though for example, around here 100% renting would be £600 a month (maybe more tbh)? On £60000 equity we would need £50000 mortgage, I dont know what I would be looking at repayments a month (capital repayment) but obv that repayment + £156 rent, cant see it being much different to £600 a month?

[Edited on 11-01-2009 by dannymccann]


£50k mortgage over 35yrs at an average of 5.9% works out at around £285/p month + your £156 rent you'll be well-under the £600 a month for the full house price...
dannymccann
Member

Registered: 9th Aug 06
Location: Doddington, Lincolnshire
User status: Offline
18th Jan 09 at 19:36   View User's Profile U2U Member Reply With Quote

Not looking into it anymore, all the properties on it are overpriced round our way.

Going to view this house soon

Been told by several agents on our 25k a year (minimum, soon to be at least 30k) with £6 - £8k deposit we could easily see 90 / 100k mortgage.

Fingers crossed



 
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