Is Shared Ownership A Good Idea?

What is the downside of shared ownership?

What are the disadvantages of Shared Ownership.

Because Shared Ownership properties are always leasehold, ground rent may apply and you must pay this in full no matter what size share of the property you own.

Therefore, the price you pay per share will rise with house prices the longer you wait..

Is shared ownership better than help to buy?

The main difference is that you would pay rent and mortgage payments with a shared ownership property whereas you would only pay mortgage payments on a help to buy property. Shared Ownership is cheaper in the first instance as the deposit is only on the share of the property you are buying.

Can you get help to buy on shared ownership?

With Help to Buy: Shared Ownership you can buy a newly built home or an existing one through resale programmes from housing associations. … Shared Ownership properties are always leasehold. Only military personnel will be given priority over other groups through government funded shared ownership schemes.

Can my partner move into my shared ownership property?

Yes but you must ensure you inform your local council if you want your partner to be liable for the council tax and you must also inform your shared ownership provider. …

Can you make structural changes to a shared ownership property?

Alterations to your property Your Shared Ownership property is your rightful home which means that you can decorate it however you wish, which you usually wouldn’t be able to do in a rented property, but there are restrictions on major, structural, alterations.

What happens when you want to sell a shared ownership property?

Selling a shared ownership property will incur costs for selling the property, gaining a value for the property and conveyance costs. If you are selling a property any arrears on service charges must be paid at completion. Generally, you are unable to sublet a property you part-own under the Shared Ownership scheme.

Can I buy 100 of shared ownership?

Usually once you have lived in your home for a certain period of time as the shared owner (depending on the terms of your lease), you can buy further shares in your property. … If you staircase to 100% you become an outright owner, and you will no longer need to pay rent.

Can you be kicked out of shared ownership?

Shared ownership properties are always leasehold, meaning you only own a property for a fixed period of time. … Because you own a share of the property, the housing association cannot evict you. They cannot evict you for non-payment of occupancy payments in the same way as a landlord can evict a tenant.

Who is responsible for repairs in shared ownership?

All repairs and maintenance to the home are your responsibility, regardless of the share you own. Most brand new homes come with a one year warranty period for defects and a longer warranty to cover any structural problems caused by poor workmanship.

Does rent go up shared ownership?

Does the rent on a Shared Ownership property increase? The rent paid to the Housing Association on the share not owned by you will be reviewed periodically, usually every year, and will be increased in line with any proportionate increase in the Retail Prices Index plus an amount, typically between 0.5% and 2%.

How long does shared ownership process take?

How long does it take to complete a shared ownership purchase? On a new build the exchange of contracts takes place within 28 days or less, however completion could be months ahead from that.

What happens after 5 years of help to buy?

After five years is up, borrowers must pay a fee of 1.75 per cent of the value of their loan, increasing each year by RPI plus 1 per cent, unless they can pay the loan off, usually by remortgaging.

Do you pay full council tax on shared ownership?

Do you pay council tax on a Shared Ownership property? Yes, just like buying any home, you will need to set up all of your own household bills including council tax.

Do you lose money on shared ownership?

Unlike full owners of leasehold properties who are unhappy with the firm running their block, shared owners cannot exercise the “right to manage” their building – it will always be run by the housing association. Another downside is that you could potentially lose your property if you fall behind on rent payments.

Is shared ownership cheaper than renting?

Shared Ownership makes mortgages more accessible, even if you’re on a lower wage. Your monthly repayments can often work out cheaper than if you had an outright mortgage. The monthly payments are also generally lower than if you were to rent privately.

Is it hard to sell a shared ownership property?

This is slightly more difficult than a standard home sale, because you’ll have to find someone who fits the shared ownership criteria, and is able to find a suitable mortgage product to support their sale.