It sucks. But if you make 20-30k a year and a house costs £200k+ no bank is gonna lend you enough to buy it. unless you plan on saving a £100k deposit.. lol Meanwhile shared ownership + mortgage + ground rent + service charges often is £200/month cheaper than renting the same kind of property, plus many allow you to staircase to 100% and own the freehold. I rather buy 50% of a house and pay 2% value of the other half , than not buy anything and pay the landlord 10% of what a house is worth every year.
This isn't true. I was paying £1600 rent lining a landlord's pockets. With now I'm paying £1400 and even though some of that is to a housing association, the rest is paying off a mortgage, so when that's paid off, the rent will be less, so far more affordable when only earning a pension. Shared ownership is the only way forward in London. Especially when rent is so expensive.
Could you please help me. I have 20k a year plus my wife 12 k, if we have deposit and bank willing to give me 170-200k mortgage, is it possible to get get shared ownership? 😊
@@innocenboy I have a £50k and only just got accepted for a £100k mortgage So I guess it depends how much deposit you have and the banks rules But a £200k mortgage sounds really high
@@innocenboy 32k a year is not enough for shared ownership - I know this because when I was on that salary the bank would only offer me a conventional mortgage. You can check your affordability on shared ownership with this calculator here -> www.sharetobuy.com/affordability/ but generally I wouldn't go for it unless you have 50k+ in join income. The better option now is the 'London Living Rent' scheme if you're in London.
With ours, if we buy 100% we get the freehold. Also I think with the type of house, demand would be good if we did want to sell full share later. However, either way we are building equity, which is a good thing in my book. Downsides are dealing with the association who own it...
Erm... yeah... Unlikely for most people to not be forced into shared ownership these days when a 3 bedroom place is between £600-800k where I live, so unless you have been fortunate to have parents giving you a huge deposit of 20-40%, landed a good job instantly and young enough to pay it back with a good credit score, then this opinion on the video is irrelevant. Also in regards to things going wrong and the landlord pays/replaces them.... Well.... It can take months/years for them to do so and when they do they replace/repair so cheaply, that you get further issues and stress, whilst they consider to increase the rent just because they had to pay out. Of course we know it's not good doing the part share buy 🤦♂️ but when landlords are charging £1,500-2200 here, it's still cheaper and at least you own something whilst being able to move on later.
No true about all flats are leasehold after staircasing to 100%. I know you aren't factual because it depends on the Housing Association. Network Homes allows me to have Freehold on my flat once I staircase to 100%. People do your own research.
The other good thing about them is you can't sublet the entire house/flat but you CAN have a lodger. 1 lodger will almost certainly cover the renting element and if you have a 3 bedroom with two lodgers your mortgage and additional costs will be minimal. You can also come to an understanding with the Housing Association (which is rare I assume) and rent the entire property with their agreement.
But I'm working full time, have a partner and still can't afford a mortgage on a small 1 bed terrace in the area I need to live in for my work. Shared ownership is the best and only way for us to move out and I will be looking more into it
This can be true in that time on 3 years ago. But right now, rents are ridiculously high. I'm planning buy a shared ownership flat because it is far cheaper than being a private tenant now. There are 2 options now, first I have to pay almost 2k for a flat, and second is buying with SO. SO mortgage + rent is almost 1k. I don't include service charge + council tax etc, because even I rent the flat I have to pay that.
If you leave on a shared ownership house and you buy the remaining shares from the housing association, the property becomes freehold. It's only flats the ones that remain leasehold.
NO, not true in EVERY case. It's a huge scandal that alot hide they'll never be freehold and have missold people that's they'll be freehold. Often the real estate agents say they are, but unless you ask the solicitor to check and confirm even the solicitors will just let you sign up. So you have to ask them to ensure it will be
@@MrRileyF could you please explain me about shared ownership. I work in hospitality, I have year income only 20k, is it still possible to get shared ownership if I have deposit?
@@MrRileyFIf you’ve got that in writing you may be able to sue whoever wrote it for mid-selling/fraud. You’ll own the inside of the 4 walls and everything inside your flat, but not the rest of the building your flat sits in. Or the land that building sits on. To illustrate, unless you have a ground floor flat, imagine the building owner demolishes everything except your flat.
If you can't afford a house and your coming up to your 40's and don't want to rent for the rest of your life plus got no change of getting a cancel flat . It's sounds pretty good to me
My shared ownership property has almost doubled in price. Yes it has its pros and cons, but it was a great way for us to live in an area that would otherwise be unaffordable. You really should do more research into SO properties.
Your shared home has doubled? So say it was 300k you bought 35% which is 105k. You have to pay your mortgage on that still. But now it's doubled so the 65% remaining that you still have to buy is now £390k. The 65% is even more expensive than the full 100% when you first wanted to buy. Because you only deposited 5% the mortgage company gave you the highest possible interest rates, you have service charge or rent on top or you have government fees. So after buy all of this over the course of 30 years you'd have actually paid nearly a million to own your home
@@wtfMYRONL you don't stay in shared ownership properties forever. But it has enabled me to now get a deposit for a new property which I would never have been able to get before. And has also enabled me to live in a fantastic area which otherwise I would have been able to live in. Swings and roundabouts I guess. Great scheme for me.
@@wtfMYRONL Apart from the fact that almost everyone in a S/O scheme WILL staircase - who the hell would still be on the initial %age after 30 years??!
Shared ownership has a rule that the rent part should not exceed 2.75% of the outstanding amount. Most common figure used is 2%. This is a lot less than traditional landlords will charge you. Your simply being subsidised by this scheme to live in a property you couldn't afford so easily if you rented privately
As an estate agent I can assure you selling a new build shared ownership or particularly a resale shared ownership property is the easiest type of property listing to gain interest on. The sales progression once you have agreed the sale is very longwinded (like most leasehold property’s) but to say you won’t be able to resell them is so far from accurate. If you were to staircase your way up and own the whole 100% (depending on demand) that could be hard to sell as you are taking away the only unique selling point to separate yourself from 100s of other listings (again depends on demand in local area)
Second this, I'm an estate agent and the second a shared ownership property goes live, the phones go mad. Agents love them as it's an easy sale and loads of mortgage potentials for the future. Do agree with Sam though in that you do end up paying inflated prices. A typical shared ownership house will often be 10%+ higher value than a standard resi. Plus all of the charges associated with the leasehold. Some SO properties are RICS valued with a set purchase price so those are the best bet for buyers.
If buying the whole property is a bad idea then what is the point of getting into the scheme unless you are really desperate? The point of buying a house is to own it.
I’ve heard they have been difficult to resell depending on the percentages. If you bought 50% share but the majority of the market only want to buy 25% you can’t sell back to the housing association to complete for less than your percentage
I think this was very tone death, Shared Ownership is there so people can get affordable housing, in my area It costs 150-200 less per month to go Shared Ownership, and in times like these, that's a big deal. It will also help me get on the ladder. The first con "You can't rent it out" Well duhhhhhhh grubby Landlords have their hands on enough houses without nicking the affordable ones too.
Great video and agree. Nobody told us shared ownership was an assured tenancy and that we could be evicted and lose all equity if we fall 8 weeks behind on rental aspect under the housing act 1988 until we staircase to 100%. Considering only 8% manage to staircase to 100% share we will likely remain assured tenants but with mortgages and 100% fees to fix our landlords building! We also weren’t told that we would not be able to extend our lease via the statutory route until we staircase to 100% Leaving us with a dwindling lease we can’t extend reducing the value. Our cleaning and gardening bill has gone from £4K to £12k pa due to a QLTA contract with a national company that the housing association said would save us money. We can’t end the contract nor change companies but have to pay the bills! The national leasehold campaign NLC and leasehold knowledge partnership are doing great work also to help leaseholders. Will share your video 👍
When finances are involved and these ideas are dreamt up its very rare it's in the customers favour. It's like pcp on cars. Did people actually think garages just woke up and thought let's lose money and give the customer a great deal.
It's a tricky topic. But I do agree that a lot of people still view owning a property as a 'good' investment and disregard the benefits of renting. Will be interesting to see how that plays out over the coming 5 years.
Not fully true as some shared ownership schemes stipulate that any value you add via works (bathroom, extension etc) is 100% yours. However the value added just by owning the house (house price rises) are split in the shares
That's interesting as I was a bit shocked to hear that part in this vid. Any more insight on how that's quantified and paid back to you when selling? Seems difficult without getting estate agents to value the property directly before and after the renovations... but even then that seems flawed...
@@tedfaun2159 Hey - so basically if you buy more shares or want to sell the house at that point the housing association (who owns the rest of the house) will request that you get the house valued. This wont be an estate agent itll be a RICS surveyor and usually the housing association have a panel of surveyors they recommend who won't be massively expensive. They come round and value the house and ask you if you have done any works. If you have they produce two values. One value for based on the value of the house WITHOUT your improvement works (this is for the housing association) and another value based on including the improvement works. So as an example: House without any work is valued at £200k House including your... lets say.... loft conversion is £250k Your share the £200k (based on the percentage you own) but the extra 50k is yours so to speak if you sold up for 250k. Hope that helps...?
@@SLLewis That does help and really appreciate the info. Thank you! Done some more looking and seems many (everyone I've spoken to so far) won't allow for structural changes anyway. Do you happen to know if that's a universal thing or still dependant on the house association? Thanks again 🙂
Hi Sam not all the shared ownership are like you described, LIFT scheme in Scotland is completely different, you don’t pay any rent and you also own the land.
Coolister can you please provide a link? I have googled it, and have different answers scotland.shelter.org.uk/get_advice/advice_topics/renting_rights/shared_ownership_rights
Am on shared ownership for 10yrs didn't know anything about leasehold. Now have to pay over £10 000 in fees. I would never want to rent but would love to be a 100% homeowner. Regrettably I fell into the trap.
Girl, Shared Ownership is IDEAL for people who wants to go up the ladder. Specially with only 25% share. Say, you will live there for only around 5 yrs and plans to sell your share after to pay for another house. You can still get profits from it and Its still better than renting without owning anything at all. SO is way much better than just renting while planning to move up the ladder. Haha
I don't think partially investing in a property as a type of stock is necessarily better then renting. As stated in the video you have to pay for all repairs like you own the place. Your boiler breaks? that's £800 you've just had to invest, that you wouldn't have if you were renting. Also paying service charges and ground rent add up, that you do not have to pay when renting. Also when it comes to selling, shared ownership as stated, isn't popular and you can struggle selling. Investing in stocks for 5 years whilst renting could work out better. (with less hassle).
@decmatee pretty much every point this guy has made is invalid, other than the fact that its usually on new builds, meaning all boilers, cookers ect come with a good few years warrenty, along with this your not spending 8K on a new kitchen as the kitchen is already brand new. It's also cheaper than renting, I pay roughly £300 a month less in my mortgage/rent then other people in my street pay on rent to the estate agents on the same property type. I've also accrued around 15K in equity in about 3 years with next to no risk, which is impossible on the stock market as risk is always apparent
So opinionated but not 100%, I believe he is pushing an agenda but not giving unbiased advised. Who knows maybe he’s renting as a company to avoid paying taxes, time will tell. It believe shared ownership works better for some coz some people, more stability that constant moves whilst renting, being able to purchase more shares with less pressure & selling to use as down payment. There are many benefits than disadvantages.
You still rent on shared ownership along side paying a mortgage. And he owns his own properties and rents them out so he technically isn’t paying his own rent 🤷🏻♂️.
Paying mortgage and rent together is a nonsense. 50% Shared ownership on 300k House would be around £1500 in monthly payments. Ln top of it bills and maintenance. You will never stop paying the rent unless you buy the other 50% of shares. So on top of your £1500 monthly payment you have to save money to buy out rest of the shares in the future. It for people who have more money than sense or feel very pressured to buy a new build to show off but can't get mortgage for a full price
Agree, my mum owns a new one, it's a new build but it's got some serious faults that the builders did. It's a bloody nightmare. Don't forget if you default on the rent they can also evict you via a court order and as compensation they cancel your lease and take ALL of your shares.
Horrible scheme. I was about to go for it because I was desperate to own my home but after working out that I will be paying the mortgage and then paying monthly rent and then paying service charge and then paying bills and then all the costs off owning a actual home like legal stuff only to be a part owner was a instant rejection from me. I really couldn't afford the scheme that was meant to be affordable. Joke scheme for my thinking. People try saving a deposit and buy outright. If you really want to do this then buy the lowest equity so your mortgage and rent is affordable as a whole and you can pay off mortgage quicker and then save to buy another property. Work out if less equity is better then high equity with a longer mortgage pay off period. Its better then rent I suppose because you will own something. Hopefully you share value will increase but it is only worth somwthing if someone has an interest in it. Not everyone is into the shared ownership idea. Also I read somewhere that shared ownership rules will be getting better so it will actually be something to consider in the future but for me it's not the one. I pray we all have a house we really want.
Basically I pay mortgage and rent? Who am I paying rent to and what is their responsibility? Isn’t someone receiving rent called a landlord? How come I am responsible for the costs of repairs etc? So basically the housing association is receiving free rent money without the responsibilities that come with it. If I only own 30% I should go 30 percent on repairs because I am paying rent to someone, 🤷♂️🤷♂️🤷♂️
Being a home owner is better as eventually you will own your house outright and therefore have no mortgage to pay, if you rent your entire life you will just be consistently paying someone else’s mortgage, makes no sense to rent Also rent is normally more expensive than a mortgage
@@mochaudhry7010 Clearly you know nothing about modern homes and flats. Best you educate yourself or you will come across as ignorant and stupid. My investment was £58 000 now worth £400 000. Mortgage nearly paid off at 54 years of age. By the way.......no one builds with plasterboard its just an internal linning ffs.
As someone who owns a a shared ownership these are time bombs for the state. The we own 75% but you pay all the repairs and also we are a HA and pay no tax due to being a charity and using state money to buy the homes in the first place. Means that when a lot of these houses become 25 and need large repairs and people are absolutely broke. It will end up in court.. unfair terms or your a HA not supplying a safe house to us. none of these rules have actually been tested to see if they are unfair. Like the whole Rwanda affair, the govt get overturned in the courts all the time
I understand what you are saying about shared ownership, but what if you are like me who could never afford to take a mortgage out for a 200k-250k house plus find the deposit for it? Shared ownership would allow me to get on the ladder. And hopefully sell a few years to be able to own a house 100%?
You make good points but shared ownership is good for some people who can't get decent housing. I get universal credit for a disability so only work part time. Universal credit will pay the rent component of the shared ownership but dont give support for mortgage. Therefore it actually works out better for those on UC to only buy a small share . And the rent is lower than a comparable rented property, and you get a brand new property. Better for the government to help people get `set up in permanent homes than paying private landlords extortionate rents for crappy rented accomodation. Plus now the Housing association have to contribute up to 500 a year in maintenance costs.
I am an IT professional working in London.. I am paying around 1200 for rent for my current apartment. But recently I found many shared ownership houses which only require less than 1000 GBP to pay monthly.. Please share your thoughts..
If i get something with shared ownership and the share i buy is 50% for 150k, and i need a mortgage on the 150k, do i have to pay my mortgage AND the rent on the share i dont own? surely that'll cost me more monthly??
I currently own a shared ownership property. In all honesty it really is a rip off, however we had no choice. if you can live with your parents, go abroad, or even get a council flat, that is way better. Save/invest/Hustle your way to a full property. We didnt have the ability to do any of those unfortunately
Does spending 12k on my garden add value to the house? Im looking at having my garden done and buying the other 50% shares when my mortgage runs out in 18 months
Honestly, if something breaks in my rented home it's still my problem not the landlords. Rats, internal doors, trees that have grown too big growing onto the property, still all down to me to pay for. In my opinion, being a tenant sucks. So, I think paying for the repairs in shared ownership isn't much different and if there is a staircase option to own the full house in time then I think it should be a consideration at least. There is obviously the other consideration is that the house will have gone up in price by the time you finish your full purchase so you are paying over what you would have wanted.
I've seen some ads where the leasehold becomes freehold when you own 100%. This video was made 3 years ago so things might have changed a bit aince then.
Albyn housing Inverness biggest con ever bought for 20 thousand 2 bed flat for half ownership.its now 55 thousand just to buy the other half and we have installed new kitchen and upgrades to house they pay nothing but gain all the time will nothing towards any maintenance.not discount to buy other half..unlike other housing projects..saying this new deals means you pay no rent on the other half..unlick myself who is stuck paying rent..its a rip-off for them it's a win win win
I'm a single mum, I'm selling my flat. But I can't get a big enough mortgage to get a decent house as I'm on a low income. I have equity from my flat for my deposit. And I can't afford to do a house up that needs doing up, such as new kitchen/bathroom. As I've got not much savings. So I think shared ownership is good if you can't afford a nicer house. I will just pretend the rent is a service charge, as I'm used to paying a service charge living in a flat. You get a better quality home. And I think I think shared ownership is aimed at people on a lower income.
Let alone the ground rent and service charge that is completely unregulated. 😓 It blows my mind that there building all this new builds all over London complete scam
Landlord owns a house and has to pay all the maintenance costs. Landlord sells half of house and buys another half of a house. Now has 2 half's Landlord gets tenants to pay all the maintenance costs on the 2 houses. Tenant thinks this is great. Landlord is a genius. In 5 years they will sell u the shed and you will he happy.
Thank you for this! Although it has slightly crushed my dreams haha. I am a 23 year old on, just on above NMW. I really want to get onto the property ladder for the first time and move out of my parents house. What are the alternatives to this scheme? As I cannot find any decent properties in my budget. Thanks.
I’d say don’t write off the idea of shared ownership just because of this video, please do some research and then decide if you want to sway away from the idea. It is a good scheme and there are pros and cons to everything, the situation this guy is in is very comfortable and not everyone can be renting a massive house because they have a couple other properties to pay his bills, in reality most people will have to either rent a place or try out a help to buy scheme to become a “homeowner”
@@neolink8197 because although you will technically be a homeowner, with a shared ownership you will only own the % of the property you can afford (over time you can use stair casing to buy more shares of the property increasing your %) so you will still have to pay rent on a reduced rate because instead of renting a property that’s worth say £150,000 if you are getting a mortgage out for 40% then you will be repaying £60,000 before interest etc (owning 40% of that property) and then renting a property that’s £90,000 which will be a lot less than renting a place that’s £150,000.
On the whole I agree with you on this one. However, judging from the comments there does seem to be some variations. I would say that it's still a better option than buying a flat though. Never buy a flat folks!
@@neolink8197 my sister had to sell a flat at a £10k loss because their neighbours made their life hell. they would bang brooms on the ceiling and screaming if they did as much as walking across their bedroom. they werent into confronting them cuz they were druggies and all sorts, they ended up sleeping in the living room on a matress to avoid upsetting the downstairs neighbours till they sold the flat at a loss.
Can anybody help with this question... if you live in a shared ownership property 50/50 and the value has increased significantly due to renovations etc. Can you release equity from the property?
NO TRUE...if you are a tenant and you break something in the house you are responsible. You are also responsible for letting the owner know of any issues with the house, if you do not you are responsible for the damage.
Hey samuel great videos as always 👍 i really like your no more excusses video, myself and my wife have been thinking both our pensions payments we make each month more than cover a buy to let mortgage, your videos have really made us think and we wondered if it's possible to put our pension payments on hold (we in our 30s) and use this spare cash instead to help set up our 1st buy to let and start a portfolio, what do you think? Kind regard Jon
Sending a message out there for anyone who's going for a shared ownership in the near future... What kind of mortgage rates have come up for you? Mine are in the range of 6.1 - 6.3 and I think I'm being absolutely shafted :D
First time buyers who haven't got much money 😂 I had to put £45,000 deposit to get my 50% unless I earn £100k a year it would be impossible to get a big enough mortgage to get a house like mine
Round my area, they are building everywhere, im on my own and want a new 2 bed semi/mid terrace house. I've got a 30k deposit, yet I still cannot buy a freehold property as the new smaller houses are this shared ownership bullshit.
Absolutely brilliantly said, very informative, I kept coming across these shared ownership properties and wondered what it's all about, you answer every question, I will keep scrolling. 😉
Sadly yes, shared ownership is a bad idea unless really desperate because you can't put a big enough deposit together. The point of buying a house is to make it your home, get a decent mortgage for the whole property so that you can keep saving, raise the value of the house and upgrade to something bigger a few years later. Get something small that you can afford in a less desirable area and take it from there if you can. Shared ownership could leave you penniless.
![ทุกครั้งที่หลับตา (Lucid Dream) - AYLA's [ Official MV ]](http://i.ytimg.com/vi/4i1OBAQyv58/mqdefault.jpg)
It sucks. But if you make 20-30k a year and a house costs £200k+ no bank is gonna lend you enough to buy it. unless you plan on saving a £100k deposit.. lol
Meanwhile shared ownership + mortgage + ground rent + service charges often is £200/month cheaper than renting the same kind of property, plus many allow you to staircase to 100% and own the freehold. I rather buy 50% of a house and pay 2% value of the other half , than not buy anything and pay the landlord 10% of what a house is worth every year.
Remember this wanker is a landlord to multiple properties, hence the advice. It would be better to buy outright though.
Makes sense.thanks
This isn't true. I was paying £1600 rent lining a landlord's pockets. With now I'm paying £1400 and even though some of that is to a housing association, the rest is paying off a mortgage, so when that's paid off, the rent will be less, so far more affordable when only earning a pension. Shared ownership is the only way forward in London. Especially when rent is so expensive.
Could you please help me. I have 20k a year plus my wife 12 k, if we have deposit and bank willing to give me 170-200k mortgage, is it possible to get get shared ownership? 😊
@@innocenboy I have a £50k and only just got accepted for a £100k mortgage
So I guess it depends how much deposit you have and the banks rules
But a £200k mortgage sounds really high
@@innocenboy 32k a year is not enough for shared ownership - I know this because when I was on that salary the bank would only offer me a conventional mortgage. You can check your affordability on shared ownership with this calculator here -> www.sharetobuy.com/affordability/ but generally I wouldn't go for it unless you have 50k+ in join income. The better option now is the 'London Living Rent' scheme if you're in London.
Well said!
@@innocenboy how old are you?
With ours, if we buy 100% we get the freehold. Also I think with the type of house, demand would be good if we did want to sell full share later. However, either way we are building equity, which is a good thing in my book. Downsides are dealing with the association who own it...
Erm... yeah... Unlikely for most people to not be forced into shared ownership these days when a 3 bedroom place is between £600-800k where I live, so unless you have been fortunate to have parents giving you a huge deposit of 20-40%, landed a good job instantly and young enough to pay it back with a good credit score, then this opinion on the video is irrelevant.
Also in regards to things going wrong and the landlord pays/replaces them.... Well.... It can take months/years for them to do so and when they do they replace/repair so cheaply, that you get further issues and stress, whilst they consider to increase the rent just because they had to pay out.
Of course we know it's not good doing the part share buy 🤦♂️ but when landlords are charging £1,500-2200 here, it's still cheaper and at least you own something whilst being able to move on later.
No true about all flats are leasehold after staircasing to 100%. I know you aren't factual because it depends on the Housing Association. Network Homes allows me to have Freehold on my flat once I staircase to 100%. People do your own research.
The other good thing about them is you can't sublet the entire house/flat but you CAN have a lodger. 1 lodger will almost certainly cover the renting element and if you have a 3 bedroom with two lodgers your mortgage and additional costs will be minimal. You can also come to an understanding with the Housing Association (which is rare I assume) and rent the entire property with their agreement.
really
Are you sure of this information?
But I'm working full time, have a partner and still can't afford a mortgage on a small 1 bed terrace in the area I need to live in for my work. Shared ownership is the best and only way for us to move out and I will be looking more into it
How did it work out for u.
This can be true in that time on 3 years ago. But right now, rents are ridiculously high. I'm planning buy a shared ownership flat because it is far cheaper than being a private tenant now. There are 2 options now, first I have to pay almost 2k for a flat, and second is buying with SO. SO mortgage + rent is almost 1k. I don't include service charge + council tax etc, because even I rent the flat I have to pay that.
I'm thinking the same - it's cheaper than renting these days. And rent isn't going to go down so I think it's worth the SO.
Well, don’t we all hope we have a daddy that will buy us a house so we don’t have do shared ownership:
I saved up on minimum wage
buy else where where the properties ant at inflated prices
@@seishin48 how?
@@gemma8611 don’t smoke drink and waste money on food, oh yeah, get a cheap car. That’s how
If you leave on a shared ownership house and you buy the remaining shares from the housing association, the property becomes freehold. It's only flats the ones that remain leasehold.
NO, not true in EVERY case. It's a huge scandal that alot hide they'll never be freehold and have missold people that's they'll be freehold. Often the real estate agents say they are, but unless you ask the solicitor to check and confirm even the solicitors will just let you sign up. So you have to ask them to ensure it will be
Not true! My HA Network Homes allows me to have Freehold for my flat after staircasing to 100%.
@@MrRileyF could you please explain me about shared ownership. I work in hospitality, I have year income only 20k, is it still possible to get shared ownership if I have deposit?
@@MrRileyF flats can never be freehold unless you own the whole building. Freehold means you own the land you’re on.
@@MrRileyFIf you’ve got that in writing you may be able to sue whoever wrote it for mid-selling/fraud. You’ll own the inside of the 4 walls and everything inside your flat, but not the rest of the building your flat sits in. Or the land that building sits on. To illustrate, unless you have a ground floor flat, imagine the building owner demolishes everything except your flat.
I’m sure the house you live in is owned by your company.
Good one!
If you can't afford a house and your coming up to your 40's and don't want to rent for the rest of your life plus got no change of getting a cancel flat . It's sounds pretty good to me
Council
You will pay rent as well
You will still be renting
Lower rent and assured tenancy till you day, with no risk of eviction opposite to if you are in a private owner property renting @@Jade-tf5kb
My shared ownership property has almost doubled in price. Yes it has its pros and cons, but it was a great way for us to live in an area that would otherwise be unaffordable. You really should do more research into SO properties.
Your shared home has doubled? So say it was 300k you bought 35% which is 105k. You have to pay your mortgage on that still. But now it's doubled so the 65% remaining that you still have to buy is now £390k. The 65% is even more expensive than the full 100% when you first wanted to buy. Because you only deposited 5% the mortgage company gave you the highest possible interest rates, you have service charge or rent on top or you have government fees. So after buy all of this over the course of 30 years you'd have actually paid nearly a million to own your home
@@wtfMYRONL you don't stay in shared ownership properties forever. But it has enabled me to now get a deposit for a new property which I would never have been able to get before. And has also enabled me to live in a fantastic area which otherwise I would have been able to live in. Swings and roundabouts I guess. Great scheme for me.
@@wtfMYRONL Apart from the fact that almost everyone in a S/O scheme WILL staircase - who the hell would still be on the initial %age after 30 years??!
@@impamiizgraa exactly. It's a stepping stone. Like I've said, it worked out great for me.
Micky Bhasin hello, I’m thinking about shared ownership too. Is it something you would recommend?
Shared ownership has a rule that the rent part should not exceed 2.75% of the outstanding amount. Most common figure used is 2%. This is a lot less than traditional landlords will charge you.
Your simply being subsidised by this scheme to live in a property you couldn't afford so easily if you rented privately
Bought shared ownership (75%) 8 years ago and just made £33k equity , so not bad a bad investment
Meanwhile this guy will still be lining his landlord's pockets and move out with nothing to show for it. Each to their own!
How much is this house? In the 40k’s? Where do you find such a house?
As an estate agent I can assure you selling a new build shared ownership or particularly a resale shared ownership property is the easiest type of property listing to gain interest on. The sales progression once you have agreed the sale is very longwinded (like most leasehold property’s) but to say you won’t be able to resell them is so far from accurate. If you were to staircase your way up and own the whole 100% (depending on demand) that could be hard to sell as you are taking away the only unique selling point to separate yourself from 100s of other listings (again depends on demand in local area)
Second this, I'm an estate agent and the second a shared ownership property goes live, the phones go mad. Agents love them as it's an easy sale and loads of mortgage potentials for the future.
Do agree with Sam though in that you do end up paying inflated prices. A typical shared ownership house will often be 10%+ higher value than a standard resi. Plus all of the charges associated with the leasehold. Some SO properties are RICS valued with a set purchase price so those are the best bet for buyers.
If buying the whole property is a bad idea then what is the point of getting into the scheme unless you are really desperate? The point of buying a house is to own it.
Happy to hear this because I am about to try to sell my 1 bedroom flat through an estate agent 🤞🏾
@@hedwigwendell-crumb91 how did it go ? Can you please let me know as I want to buy Shared ownership apartment.
I’ve heard they have been difficult to resell depending on the percentages. If you bought 50% share but the majority of the market only want to buy 25% you can’t sell back to the housing association to complete for less than your percentage
I think this was very tone death, Shared Ownership is there so people can get affordable housing, in my area It costs 150-200 less per month to go Shared Ownership, and in times like these, that's a big deal. It will also help me get on the ladder. The first con "You can't rent it out" Well duhhhhhhh grubby Landlords have their hands on enough houses without nicking the affordable ones too.
Great video and agree. Nobody told us shared ownership was an assured tenancy and that we could be evicted and lose all equity if we fall 8 weeks behind on rental aspect under the housing act 1988 until we staircase to 100%. Considering only 8% manage to staircase to 100% share we will likely remain assured tenants but with mortgages and 100% fees to fix our landlords building! We also weren’t told that we would not be able to extend our lease via the statutory route until we staircase to 100% Leaving us with a dwindling lease we can’t extend reducing the value. Our cleaning and gardening bill has gone from £4K to £12k pa due to a QLTA contract with a national company that the housing association said would save us money. We can’t end the contract nor change companies but have to pay the bills! The national leasehold campaign NLC and leasehold knowledge partnership are doing great work also to help leaseholders. Will share your video 👍
When finances are involved and these ideas are dreamt up its very rare it's in the customers favour.
It's like pcp on cars. Did people actually think garages just woke up and thought let's lose money and give the customer a great deal.
Broke my dreams in minutes 😂but truth probably hurts thanks
100% true. Shared ownership is basically assured short tenancy.
It's a tricky topic. But I do agree that a lot of people still view owning a property as a 'good' investment and disregard the benefits of renting. Will be interesting to see how that plays out over the coming 5 years.
It’s moving up and down especially with children hence it works so some. I think it is his opinion
Not fully true as some shared ownership schemes stipulate that any value you add via works (bathroom, extension etc) is 100% yours. However the value added just by owning the house (house price rises) are split in the shares
That's interesting as I was a bit shocked to hear that part in this vid. Any more insight on how that's quantified and paid back to you when selling? Seems difficult without getting estate agents to value the property directly before and after the renovations... but even then that seems flawed...
@@tedfaun2159 Hey - so basically if you buy more shares or want to sell the house at that point the housing association (who owns the rest of the house) will request that you get the house valued. This wont be an estate agent itll be a RICS surveyor and usually the housing association have a panel of surveyors they recommend who won't be massively expensive.
They come round and value the house and ask you if you have done any works. If you have they produce two values. One value for based on the value of the house WITHOUT your improvement works (this is for the housing association) and another value based on including the improvement works.
So as an example:
House without any work is valued at £200k
House including your... lets say.... loft conversion is £250k
Your share the £200k (based on the percentage you own) but the extra 50k is yours so to speak if you sold up for 250k.
Hope that helps...?
@@SLLewis That does help and really appreciate the info. Thank you!
Done some more looking and seems many (everyone I've spoken to so far) won't allow for structural changes anyway. Do you happen to know if that's a universal thing or still dependant on the house association?
Thanks again 🙂
@@tedfaun2159 I believe it depends on the policy the developer enforces. Here in Egypt, it's difficult to get approval for structural changes
Needed. I forgot myself for a second. Thanks for bringing me back in the room!
Hi Sam not all the shared ownership are like you described, LIFT scheme in Scotland is completely different, you don’t pay any rent and you also own the land.
Coolister can you please provide a link? I have googled it, and have different answers
scotland.shelter.org.uk/get_advice/advice_topics/renting_rights/shared_ownership_rights
Am on shared ownership for 10yrs didn't know anything about leasehold. Now have to pay over £10 000 in fees. I would never want to rent but would love to be a 100% homeowner. Regrettably I fell into the trap.
£10,000 in fees?
Girl, Shared Ownership is IDEAL for people who wants to go up the ladder. Specially with only 25% share. Say, you will live there for only around 5 yrs and plans to sell your share after to pay for another house. You can still get profits from it and Its still better than renting without owning anything at all. SO is way much better than just renting while planning to move up the ladder. Haha
Absolutely right
Does it mean that my 50% of share will worth more if the house price in that region increases? Also, it is difficult to sell this 50% share?
Yees but after those 5 years others house that you will hunt will be even more expesinve after those 5 years so highly doubt that no?
I don't think partially investing in a property as a type of stock is necessarily better then renting. As stated in the video you have to pay for all repairs like you own the place. Your boiler breaks? that's £800 you've just had to invest, that you wouldn't have if you were renting. Also paying service charges and ground rent add up, that you do not have to pay when renting. Also when it comes to selling, shared ownership as stated, isn't popular and you can struggle selling.
Investing in stocks for 5 years whilst renting could work out better. (with less hassle).
@decmatee pretty much every point this guy has made is invalid, other than the fact that its usually on new builds, meaning all boilers, cookers ect come with a good few years warrenty, along with this your not spending 8K on a new kitchen as the kitchen is already brand new. It's also cheaper than renting, I pay roughly £300 a month less in my mortgage/rent then other people in my street pay on rent to the estate agents on the same property type. I've also accrued around 15K in equity in about 3 years with next to no risk, which is impossible on the stock market as risk is always apparent
Complete and utter nonsense. Shared ownership has its flaws but it's still better than renting.
Guy in the video dont realise his paying dead rent & owning nothing, i think thats more of a loss😂
So opinionated but not 100%, I believe he is pushing an agenda but not giving unbiased advised. Who knows maybe he’s renting as a company to avoid paying taxes, time will tell. It believe shared ownership works better for some coz some people, more stability that constant moves whilst renting, being able to purchase more shares with less pressure & selling to use as down payment. There are many benefits than disadvantages.
You still rent on shared ownership along side paying a mortgage. And he owns his own properties and rents them out so he technically isn’t paying his own rent 🤷🏻♂️.
Paying mortgage and rent together is a nonsense. 50% Shared ownership on 300k House would be around £1500 in monthly payments. Ln top of it bills and maintenance. You will never stop paying the rent unless you buy the other 50% of shares. So on top of your £1500 monthly payment you have to save money to buy out rest of the shares in the future.
It for people who have more money than sense or feel very pressured to buy a new build to show off but can't get mortgage for a full price
Agree, my mum owns a new one, it's a new build but it's got some serious faults that the builders did. It's a bloody nightmare. Don't forget if you default on the rent they can also evict you via a court order and as compensation they cancel your lease and take ALL of your shares.
Horrible scheme. I was about to go for it because I was desperate to own my home but after working out that I will be paying the mortgage and then paying monthly rent and then paying service charge and then paying bills and then all the costs off owning a actual home like legal stuff only to be a part owner was a instant rejection from me. I really couldn't afford the scheme that was meant to be affordable. Joke scheme for my thinking.
People try saving a deposit and buy outright.
If you really want to do this then buy the lowest equity so your mortgage and rent is affordable as a whole and you can pay off mortgage quicker and then save to buy another property. Work out if less equity is better then high equity with a longer mortgage pay off period.
Its better then rent I suppose because you will own something. Hopefully you share value will increase but it is only worth somwthing if someone has an interest in it. Not everyone is into the shared ownership idea.
Also I read somewhere that shared ownership rules will be getting better so it will actually be something to consider in the future but for me it's not the one.
I pray we all have a house we really want.
Basically I pay mortgage and rent? Who am I paying rent to and what is their responsibility? Isn’t someone receiving rent called a landlord? How come I am responsible for the costs of repairs etc? So basically the housing association is receiving free rent money without the responsibilities that come with it. If I only own 30% I should go 30 percent on repairs because I am paying rent to someone, 🤷♂️🤷♂️🤷♂️
Being a home owner is better as eventually you will own your house outright and therefore have no mortgage to pay, if you rent your entire life you will just be consistently paying someone else’s mortgage, makes no sense to rent
Also rent is normally more expensive than a mortgage
They said that with interest free mortgages aswell.
Not completely true. New flats have good warranties on most things. 10 years typical.
yeah but built with slim plaster boards! kitchen are in the lounge , and not really a good investment
@@mochaudhry7010 Clearly you know nothing about modern homes and flats. Best you educate yourself or you will come across as ignorant and stupid. My investment was £58 000 now worth £400 000. Mortgage nearly paid off at 54 years of age. By the way.......no one builds with plasterboard its just an internal linning ffs.
As someone who owns a a shared ownership these are time bombs for the state. The we own 75% but you pay all the repairs and also we are a HA and pay no tax due to being a charity and using state money to buy the homes in the first place. Means that when a lot of these houses become 25 and need large repairs and people are absolutely broke. It will end up in court.. unfair terms or your a HA not supplying a safe house to us. none of these rules have actually been tested to see if they are unfair. Like the whole Rwanda affair, the govt get overturned in the courts all the time
That was not shared ownership explained
Love this video - you come across so energetic and it really keeps the watcher engaged! I do agree on the cons of being owner and still paying rent...
Panda Boss - Personal Finance & Bossing Life tha is for watching :)
If you can, overpay on the mortgage then in 2 years you’ll have enough equity to buy more or the whole 100%
I understand what you are saying about shared ownership, but what if you are like me who could never afford to take a mortgage out for a 200k-250k house plus find the deposit for it?
Shared ownership would allow me to get on the ladder. And hopefully sell a few years to be able to own a house 100%?
You make good points but shared ownership is good for some people who can't get decent housing. I get universal credit for a disability so only work part time. Universal credit will pay the rent component of the shared ownership but dont give support for mortgage. Therefore it actually works out better for those on UC to only buy a small share . And the rent is lower than a comparable rented property, and you get a brand new property. Better for the government to help people get `set up in permanent homes than paying private landlords extortionate rents for crappy rented accomodation. Plus now the Housing association have to contribute up to 500 a year in maintenance costs.
I am an IT professional working in London.. I am paying around 1200 for rent for my current apartment. But recently I found many shared ownership houses which only require less than 1000 GBP to pay monthly.. Please share your thoughts..
But remember as he said, you’re responsible for repairs etc, which is wrong, if u own half then the responsibilities have to be shared.
If i get something with shared ownership and the share i buy is 50% for 150k, and i need a mortgage on the 150k, do i have to pay my mortgage AND the rent on the share i dont own? surely that'll cost me more monthly??
I currently own a shared ownership property. In all honesty it really is a rip off, however we had no choice.
if you can live with your parents, go abroad, or even get a council flat, that is way better. Save/invest/Hustle your way to a full property. We didnt have the ability to do any of those unfortunately
Hi, what was your experience like?
@@Jamtastic lots of building issues. However now that interest rates are crazy, I'm glad I got it. I am planning on selling it soon
Thanks, very good explanation and all poins make a lot of sense, especially that land lease part that you still won't own even you buy 100% shares.
Quality video always wanted to know more about this scheme
Does spending 12k on my garden add value to the house? Im looking at having my garden done and buying the other 50% shares when my mortgage runs out in 18 months
Can you keep a lodger while you staying at a shared ownership property?
Yee
Thanks for clearing that up for us
THANK YOU........simply put.!!....keep them coming mate. Appreciate your video.
If something breaks in the house. And I own 50%. Then I'm paying 50% of the repair bill. Period.
Sure.. And I dunno why he claimed in the vid that you pay the whole bill !!
Thanks for this! Straight to the point.
Informative, thank you
Honestly, if something breaks in my rented home it's still my problem not the landlords. Rats, internal doors, trees that have grown too big growing onto the property, still all down to me to pay for. In my opinion, being a tenant sucks. So, I think paying for the repairs in shared ownership isn't much different and if there is a staircase option to own the full house in time then I think it should be a consideration at least. There is obviously the other consideration is that the house will have gone up in price by the time you finish your full purchase so you are paying over what you would have wanted.
What about not owning the land on the shared ownership property. Freehold vs leasehold. Yearly ground rent charges can be expensive.
What? I have to live in the house I buy under SO? Shocking!!
Haha.
Well said. Thanks for the heads-up.
Very well explained tbf.. I was thinking of doing Shared Ownership, probably not now.. its worth saving up and buying the whole house IMO.
Thank you for your advice, very interesting.
If people can't afford houses, prices must drop to where its affordable l.
Unless we can convince them to buy part of a home.
great video information!
Thanks man love you loads
Atleast this guy makes sense
I've seen some ads where the leasehold becomes freehold when you own 100%. This video was made 3 years ago so things might have changed a bit aince then.
Thanks for the video
Agree one million percent
Albyn housing Inverness biggest con ever bought for 20 thousand 2 bed flat for half ownership.its now 55 thousand just to buy the other half and we have installed new kitchen and upgrades to house they pay nothing but gain all the time will nothing towards any maintenance.not discount to buy other half..unlike other housing projects..saying this new deals means you pay no rent on the other half..unlick myself who is stuck paying rent..its a rip-off for them it's a win win win
What if you are single mum and not really planning on investing, would it be worth it ?
I'm a single mum, I'm selling my flat. But I can't get a big enough mortgage to get a decent house as I'm on a low income. I have equity from my flat for my deposit. And I can't afford to do a house up that needs doing up, such as new kitchen/bathroom. As I've got not much savings. So I think shared ownership is good if you can't afford a nicer house. I will just pretend the rent is a service charge, as I'm used to paying a service charge living in a flat. You get a better quality home. And I think I think shared ownership is aimed at people on a lower income.
You so honest. I like that .
Mate I really really like your channel you are really legend
Nice one dude
If you did rent out the property privately. How would the housing association know?
You can have lodgers
thank you for this video
Let alone the ground rent and service charge that is completely unregulated. 😓
It blows my mind that there building all this new builds all over London complete scam
Landlord owns a house and has to pay all the maintenance costs.
Landlord sells half of house and buys another half of a house. Now has 2 half's
Landlord gets tenants to pay all the maintenance costs on the 2 houses.
Tenant thinks this is great.
Landlord is a genius.
In 5 years they will sell u the shed and you will he happy.
Great video Samuel 👍👍
Thank you for this! Although it has slightly crushed my dreams haha. I am a 23 year old on, just on above NMW. I really want to get onto the property ladder for the first time and move out of my parents house. What are the alternatives to this scheme? As I cannot find any decent properties in my budget. Thanks.
I’d say don’t write off the idea of shared ownership just because of this video, please do some research and then decide if you want to sway away from the idea. It is a good scheme and there are pros and cons to everything, the situation this guy is in is very comfortable and not everyone can be renting a massive house because they have a couple other properties to pay his bills, in reality most people will have to either rent a place or try out a help to buy scheme to become a “homeowner”
@@godisthedj9509 Good advice but why did you write ''homeowner''?
@@neolink8197 because although you will technically be a homeowner, with a shared ownership you will only own the % of the property you can afford (over time you can use stair casing to buy more shares of the property increasing your %) so you will still have to pay rent on a reduced rate because instead of renting a property that’s worth say £150,000 if you are getting a mortgage out for 40% then you will be repaying £60,000 before interest etc (owning 40% of that property) and then renting a property that’s £90,000 which will be a lot less than renting a place that’s £150,000.
Get a second job part time and save all the money you can for 2 years. You will have a nice deposit by then
On the whole I agree with you on this one. However, judging from the comments there does seem to be some variations. I would say that it's still a better option than buying a flat though. Never buy a flat folks!
Why is buying a flat not a good idea?
@@neolink8197 my sister had to sell a flat at a £10k loss because their neighbours made their life hell. they would bang brooms on the ceiling and screaming if they did as much as walking across their bedroom. they werent into confronting them cuz they were druggies and all sorts, they ended up sleeping in the living room on a matress to avoid upsetting the downstairs neighbours till they sold the flat at a loss.
Can anybody help with this question... if you live in a shared ownership property 50/50 and the value has increased significantly due to renovations etc. Can you release equity from the property?
Thanks mate x
Share ownership is the biggest scam in the world
The clue was in the name. Shared ownership scheme.
Hi Samuel what are the issue if any with being a employee and have a ltd company tax wise?
NO TRUE...if you are a tenant and you break something in the house you are responsible. You are also responsible for letting the owner know of any issues with the house, if you do not you are responsible for the damage.
Hey samuel, can you cover a topic on RIGHT TO ACQUIRE OR RIGHT TO BUY pls and thank you.
Rent money are lost forever money. Rent is very expensive where i live, much cheaper in the long run to buy a house
Hey samuel great videos as always 👍 i really like your no more excusses video, myself and my wife have been thinking both our pensions payments we make each month more than cover a buy to let mortgage, your videos have really made us think and we wondered if it's possible to put our pension payments on hold (we in our 30s) and use this spare cash instead to help set up our 1st buy to let and start a portfolio, what do you think? Kind regard Jon
Can u refinance, your ½ ( ⅓, ¼ etc) of a shared ownership home?
I believe so.. it's like equity release
subbed.
Sending a message out there for anyone who's going for a shared ownership in the near future... What kind of mortgage rates have come up for you?
Mine are in the range of 6.1 - 6.3 and I think I'm being absolutely shafted :D
If you're doing home repairs like you're doing lemon car repairs then I guess renting makes more sense.
Thank you. I understand it clearly now and it's not for me.
Thank you x
First time buyers who haven't got much money 😂 I had to put £45,000 deposit to get my 50% unless I earn £100k a year it would be impossible to get a big enough mortgage to get a house like mine
Round my area, they are building everywhere, im on my own and want a new 2 bed semi/mid terrace house. I've got a 30k deposit, yet I still cannot buy a freehold property as the new smaller houses are this shared ownership bullshit.
This is the funny story about UK, even with an high deposit on hands, buying even far away from London is basically impossible
Thank you so much..
Yeah, shared ownership won't be for me I'm afraid
Thanks for help
Absolutely brilliantly said, very informative, I kept coming across these shared ownership properties and wondered what it's all about, you answer every question, I will keep scrolling. 😉
Sadly yes, shared ownership is a bad idea unless really desperate because you can't put a big enough deposit together. The point of buying a house is to make it your home, get a decent mortgage for the whole property so that you can keep saving, raise the value of the house and upgrade to something bigger a few years later. Get something small that you can afford in a less desirable area and take it from there if you can. Shared ownership could leave you penniless.
I just don’t understand why u rent that house u are in ! Why waste all that money on rent when u can afford to buy it ?
What you talking about! You can staircase to 100% and have it as a freehold.
Fantastic vid as always
Thanks
If someone owns property in the UK only, does that mean he " keeps all his eggs in one basket" ?
Yeah, pretty much, unless they have other investments
Very straight forward. Thanks for advice.