Shared Ownership

Siopan

Has anybody purchased a house via shared ownership? I am wondering how successful it is. I have heard it can be a very slow process.

Willm5499

Hi Siopan,
i am currently with the shared ownership scheme and am finding it extremely hard to get out of, we bought an apt back in 2008 and we are paying mad money per month as the rental side rises every year that you are with them, my advise is DO NOT go near the shared ownership scheme with DCC ,it is such a scam for 1st time buyers. and will not help you in any way regardless of your circumstances they dont want to know, and they call themselves a 'council'. i heard the rent to buy is a great scheme..

Thespoofer

Hi OP

We bought in 2004 through this scheme. I see ALOT of people here advise not to apply for this scheme but here's what I think ;

If you are in a position to pay a little extra each month or even every second month ( 500 e for example ) on the rental equity of the house ( 60 % the council would originally own ) ON TOP of the mortgage/rent you owe then this brings down your payments each month ( allbeit it may only be 2-3 e less/month ).

This in turn eliminates the yearly rent rise which the council review each year ( a certain % rise each year )

If you run into difficulties workwise and your previous yearly earnings and fall below the band of earnings which would allow you to qualify for a rent reduction. This is very handy because if you can get your rental side of the bill reduced, you can still 'chip away' at this equity month by month ( basically buy your house in small amounts ) .
You could not do this with a bank as you would probably face charges etc and with the SOS you would not.

Also, I worked out the cost of borrowing from a bank compared to the shared ownership scheme and using the method above ( buy piece by piece ) it actually worked out about 75 k cheaper with the SOS than the bank over the lifetime of the credit, not even taking into account the money saved on rent reductions ( my small brain can't work out that far ahead ).

Finally, If I ran into trouble down the line financially, I would rather owe the council the money rather a high street bank. Each to their own I suppose.

Willm5499

The spoofer ? i know what your saying about going with the council rather than the bank but the dcc are very ignorant, & are really UN-helpful when it comes to helping those in need of a way to ease the burden. They forget they are there to help people in distress and not fob them off with stupid answers which is what we keep getting. Take your head out of your ass and realise the property market is in crisis and with people losing jobs its very hard to pay more money on top of the mortgage. Not everyone would be in the same situation as yourself...

Thespoofer

My head out of my ass:pac::pac::pac::pac::pac::pac: real clever.

Anyway, yes I'm aware whats going on with the 'property market' and I can tell you, I'm in no way in a more 'well off situation' than the next person, lets just say the average industrial wage for argument sake, some years even less.
But I'm don't owe any other credit other than the roof over my head and by keeping my head out of my ass:pac::pac::pac::pac: and not swanning around with big cars, fancy lifestyles and what have you there is sometimes a little left over SOME months to pay down the rental equity.
I haven't dealt with DCC and take your word on it if you say are ignorant but there are clauses in the contract to state if you fall below the income band you CAN get the rental equity reduced, for me thats when you should ( if possible ) to try and pay the money saved on rent down on the rental equity.

Finally, tell me more about the Rent to buy Scheme please, it sounds good...

Regards

The Spoof

John Mason

i bought my house with shared ownership 7 years ago and it has worked out brilliant for me.

i am currently transferring over to 100% mortgage plus i am knocking 5 years off the term.

i would recommend it, if you are buying a home rather then a property.

you also have the added bonus, that if you run into financial difficulty you have a couple of years to sort yourself out before the do anything

John Mason

Willm5499 wrote: »

The spoofer ? i know what your saying about going with the council rather than the bank but the dcc are very ignorant, & are really UN-helpful when it comes to helping those in need of a way to ease the burden. They forget they are there to help people in distress and not fob them off with stupid answers which is what we keep getting. Take your head out of your ass and realise the property market is in crisis and with people losing jobs its very hard to pay more money on top of the mortgage. Not everyone would be in the same situation as yourself...

look it's not the council fault you bought an over priced 1 bed apartment.

if you were with a bank would you except them to just give you a bigger place because your circumstances changed

FlexBrowne

irishbird wrote: »

i bought my house with shared ownership 7 years ago and it has worked out brilliant for me.

i am currently transferring over to 100% mortgage plus i am knocking 5 years off the term.

i would recommend it, if you are buying a home rather then a property.

you also have the added bonus, that if you run into financial difficulty you have a couple of years to sort yourself out before the do anything

What do you mean they won't do anything for two years?