Shared ownership?

[MichelleS]

With high house prices is shared ownership the best way forward to get on the property ladder ?
Does anyone have experience of this ,pros and cons
Many thanks

[Mickey's Magic]

We bought our first house on Shared Ownership back in 2013. We had a good experience when living in the property which was just the same as any other new build property of the site we were on. It helped to get on the housing ladder with a decent house and get a mortgage too (you still pay rent for the % you don't own)

One thing to remember is because the house is shared ownership you will be purchasing it as leasehold and there will be a number of restrictions and covenants added to the lease. You will also need to ask the Freeholder (generally a housing association) for permission to make any changes to the property.

The negatives we experienced were when we came to sell it, firstly the HA were difficult when it came to agreeing an asking price for the property and we had to really push for the price we wanted to list the house as. Secondly there were a lot of extra fees associated with the sale that we were left to pick the bill up for. We had to pay the HA legal fees for the purchase which added nearly another £1k in fees plus a fee to the HA themselves to provide information to the buyers solicitor.

Overall it got us on the housing ladder in a nice house but I can see where you could possibly get caught out and either left stuck in the property or with large fees to leave.

[Disneydreamer91]

We were so close to signing on the dotted line for a shared ownership flat in 2015. In the end it was the reams of legal paperwork that put us off. With our particular housing association there were so many T'S&C's that it wouldnt have felt like my own home but I appreciate this is individual to each HA.

Ours included things like no wallpaper, no wood flooring, no parking large cars etc etc. We had to use certain solicitors and it was all very painful. I could only imagine how difficult it would have been to sell and the hoops we would have had to jump through.

We ended up saving for a further 2 years to buy a flat outright, whilst we still have a few covenants what with it being leasehold (like no pets), we have greater flexibility. This would always be my preference, but I know it's not always that easy.

I guess just read any paperwork with a fine tooth comb.

[MichelleS]

Thanks for your replies

[wdw1991]

We are currently in shared ownership, we only have to get permission for structural changes. We would never have been able to get into a property in this location or a new build without the scheme.

Our neighbours have just put theirs up for sale and they have not had any issues with the HA but yes there are several fees that will come up when doing so.

[Pupbelly]

Its a legal black hole and there are a number of areas where you can really be caught out, may be not now but certainly in the future as "they" move the goal posts! Read everything very carefully and understand just what is and isn't 'yours'. Help To Buy is another huge disaster area - avoid!

[Wonder]

Friend of mine currently in shared ownership in a London Borough.
Property is ex council flat (I believe) that was done out by HA to sell under shared ownership scheme. She discovered extensive issues with the plumbing that would have been down to the initial installation work and this has caused a lot of hidden but extremely serious mould.
Costing her upwards of £10k to fix as it's not covered under her house insurance because of some weird shared ownership loophole, and HA are refusing to take any part in it even though they are part owner of the property and were the ones who had the initial install done in the first place.

Friend cannot take them to court as cannot afford to lose.

She's also not a shy retiring type, used to work for legal services with lots of contacts, all of whom advise pursuing the HA is more hassle than it's worth.

So just a hit of buyer beware--it's an excellent solution for many but do your due diligence.