Shared ownership

[goosey-goosey]

Does anyone have any insights into shared ownership? The process, the pitfalls, specific housing associations to avoid, tips, etc. A friend is exploring the possibilities of co-owning a house (in North London - no, really :-0). She has found a potential property but has no experience of the process and whether to trust the dreadful reviews of the housing association, Clarion. I said I'd tap into the collective wisdom that is the EDF.

Any thoughts gratefully received.

[JohnL]

I own 30% and have for 10 years

Advantages

You get on the housing ladder and your percentage may increase in value

If the price falls you could take the paper loss and buy more share

Process of buying was easy - I paid small deposit

I'm actually happy where I live and have some equity

Pitfalls

Higher interest for shared ownership mortgages

Rent goes up by RPI in Sept + 0.5% (it always goes up)

Service charges tend to go up

Staircasing isn't easy once the price rises

You have responsibility for repairs in your property

You can lose the lot if you were removed from the flat for breaking terms of lease or not paying rent

[JohnL]

Oh - I'm with L&Q - They also do social housing and some would say shared owners subsidise social owners to some extend (the service charge for instance)

[niall]

i'm looking into this too.

would be great to get suggestions of good orgs to go with.

[JohnL]

Check

https://www.sharetobuy.com/

[hpsaucey]

Hi John L summarises nicely. I?d also add that it also can cushion you against sudden mortgage rises as at least the rent increase is fairly predictable.

H

[goosey-goosey]

Really useful. Thanks, JohnL and hpsaucey.