Shared ownership

[karmgirl]

Advantages / disadvantages?

How does the scheme work exactly?

[funnygirl]

You own half and someone else has the other half!!!

[Barmaid]

Do you mean the shared ownership scheme for houses for keyworkers?

You own part of the property, the Scheme own the other half. As well as your mortgage, you also pay a small amount of rent to them for their part of the property. It's a good idea for those who can't afford to buy a house on their own.

[Nik315]

http://www.theanswerbank.co.uk/Home-and-Garden /Question532856.html

[daisycup]

I am on a shared ownership scheme. I live on my own and with the house prices today its very difficult buying somewhere out right on your own. I have purchased 50% so I pay half to my mortgage lender and half to the housing association.

I think its a good idea for people like me and would recommend.

[Uttingbuzz]

Advantage of getting your foot on the ladder without having to be able to afford a full mortgage, disadvantage you will still have to pay rent on the half you dont own but still cheaper than full mortgage. Is particluarly good in todays climate where getting a mortgage is very hard without a massive deposit.

The HA (housing association) own the other half you get a mortgage for half and then you can but more shares of the house as and when you can afford it. If you sell the property before owning all of it the HA get the percentage of what they own ie if you buy at 100k you mortgage 50k and rent 50k if when you sell its worth 120k you get 60k and they get 60k.

Normally can get on new build which means you have your own brand new home for less, very good scheme but you should check the contract from the HA to ensure you have the option to staircase your ownership to 100% should you want to, some HA's limit to 80% for instance so they will always get a share of the profit if you sell. Hope this helps!

[logic]

funnygirl that's brilliant, how ever did you work that out , ? <<:-)

[funnygirl]

Clever girl, aren't I??

Next question please.

[logic]

I know, but how long did it take you to work it out, ?
And arn't you going to wish me happy holiday, ? tut tut tut.

[sallybowles]

I will logic.....happy holiday.
:-)

[logic]

Thank you sally

[funnygirl]

Logic see above!!