Thank you Alex for this useful tips, I have been scared to look at shared ownership but your video has been helpful. Is all about listening to the right stuff from the right people. Is time to make a move
Question lets say the property is 50% share & I finish paying that off but decide i want different house does the developer pay you 50% back or you got to find someone to buy your share? Edit: that rent you pay each month that just goes to the developer, in other means its dead money rent paying out, don’t go towards nothing?
Hi great video really helpful thank you I’m beginning to look into moving out for first time… shared ownership sounds good, any idea when this new scheme will be introduced (involving maintenance costs) I think this could play a role in my decision. Thanks
Thanks Alex. I dont need a mortgage so does the association just work out whether i can pay for the rent or not. My credit score is poor. Would that affect it. I dont have any debts.
I'm really worried about ground rent and service charges going up exponentially. Or faster than my wages increase. I feel like housing associations would be wanting to hide this information to catch me out.
Great video Alex, thank you for all the information! When we start the stair casing to buy more percentages of the property, can we add it to the mortgage? Example: I am looking to buy a 50% of a property, in case in few year we want to buy another 25% would the bank accept it and recalculate the mortgage? Thanks :)
When your deal ends then you remortgage with another lender you could borrow the extra to buy more shares at that point… Or if your current lender allows it you may be able to do what is known as a further advance, which is a bit like a top up of your current mortgage.
Hi Alex - this was incredibly helpful, thank you. I'm exploring shared ownership as I cannot afford to buy on the open market. I'm 55 this year though and I wonder if there are any issues I should be aware of here - like, how many years mortgage could I get given my age? I'm also self-employed and don't have an accountant - self employed for 8 years. Not sure if that's a problem as the tax office have records of my returns and tax paid etc.
Thank you for your kind words and watching the video. As long as you have submitted your tax returns, then you can use that as evidence of income. However, unless you have a pension when you retire at age 70, then the maximum term you could get is likely nine years. Some lenders do lend up to 75 to 80 years of age, but you need to evidence how you would pay the mortgage assuming retirement age is 70.
Hi Alex brilliant video! I’ve got a quick question if that’s ok. To the best of your knowledge does owning a house you bought with shared ownership( let’s say I own 50% ) restrict me of using it as Airbnb for periods of the year ( I’m Normally out of the country for 3 months every year) Thanks in advance .
Thanks for watching! Any property you bye to live in, would have a restriction for Airbnb… I think some buy to let mortgages allow you to rent it out on Airbnb, which means you can’t ever live in it.
As long as your property ends up on right move etc then I hardly think it makes any difference... I think in most cases it sold through an agent so I would public go that route to be fair as the agent will be looking to sell the property. I would just doublecheck what the housing association rules are first and then go from there.
Hi is shared ownership a good option for second time buyer. But someone who is wanting to buy a larger house that they wouldn’t be able to afford the 15-20% deposit for without? Thank you
@@lukelynes-rq6uy shared ownership is better then renting. Always try to buy outright but if that’s not an option then absolutely you can buy more shares or use it as a stepping stone.
Hi Alex thanks a lot for this email, it actually opened my eyes on few aspects of shared ownership however, I still have couple of questions to ask regarding shared ownership what is the best way to get in touch with you ????? Thanks a lot
I find it extremely Unfair: Help to buy allows couples to use 40% Funds free for 1st 5 years, Where as a shared owner has to pay Rent of the remainder of unpurshased share. How is a shared owner suppose to save to start staircasing.
The affordable housing scheme will soon be with us, and this will allow you to purchase extra shares in one percent increments rather than 10%… This will go towards solving your problem!
This scheme was supposed to come out this year but we have heard nothing so far! So I'm not sure at this stage, however soon to is available I will do a video and explain who is available to!
The scheme seems ok, but by the time you’ve paid out 1. The mortgage repayment 2. The rent 3. The service charge 4. Ground rent And all Other bills most will be skint at the end of the month! Cheap way in and then suffer month on month for only a small Share! That’s just my Opinion
I'm planning to buy a shared ownership property. however, the build isn't finished and does not have a showroom. but the estate agent has said the photos matches the property. is this normal? or does anyone know?
Me and my wife earn combined over the £80k threshold. I earn £60,000 salary on my own, can I apply for a shared ownership mortgage on my own? We are first time buyers and without this option it seems there is not much else support out there!
This is quite complex to answer over a message. Feel free to book in for a free chat so I can go through all of your options with you. Here is the link - link.coursecreator360.com/widget/appointment/mortgage-chain
Isn't shared ownership a total rip off? You "own" a chunk of a lease and the landlord ( An HA -horrendous standards in that sector currently) whom simply charge you for all their terrible repairs and can price hike the service charges exponentially. Its ownership in name only, in fact your mortgage is propping up the HA's dividends and you will never be able to buy the freehold (in most case)s and will have to burden the costs all major repairs. IT IS A MASSIVE CON! Its better for people on low incomes to have access to good repair social housing which is non existent as all the HAs now build shared ownership homes with token minimal social properties to cover the "we are a charity "hogwash. In fact all the people in low income properties whom provide the rent to be able to subsidise the new builds are battling, mould, vermin, disrepair as a result of the money garnered from those rents being diverted into revenue motivated schemes where the service charges will forever be elevated unless regulations come into force to keep them reasonable. You own a debt that is all. Please also look at all the reviews on trust pilot of ANY HA you wish to buy from, as many have been trapped into unsellable properties due to cheap building products and terrible standards of build. People buying to let and renting out the properties on a SO are also responsible from depriving those whom actually need homes to LIVE IN from decent homes.
Appreciate your thoughts and certainly a wise idea to check Trust Pilot. There are some good housing associations out there, and I know this game has been positive for some people, but it’s impossible to account for every single shared ownership property in the country.
Hi , great video. My question is, can you qualify for a share ownership mortgage if you are paying a personal loan ? I got into a bit of a financial difficulty during 2020 and I’m have a loan. We have never missed a payment and we have saved £20k for a deposit. The other thing is we are moving to another town, are there any restrictions to buy once we arrive? Thanks
It’s absolutely fine to get a shared ownership mortgage with al loan.The lender will just deduct the loan payments from your income, and as long as it still fits affordability, you will be fine. There are no restrictions on location or schemes for locals etc. You can obtain this scheme anywhere in the UK.
@@alexkerrmortgage hi thank you for your reply. That’s great. We are moving from Jersey to Liverpool as it’s more affordable. I’ll start my research. Many thanks
Is it common/possible to buy shared ownership for households with high income (for example 120K joint income in London). I’ve been searching online and some have a max income requirement. How easy is to sell the share after a few years of ownership? Is it exactly same process as for full ownership? Thanks for the video!
I’m in a similar position so I thought I would respond since I know the answer to your question. All shared ownership schemes have a maximum income and credit historamount and this is usually £90,000 in London (£80,000 outside London). You don’t have to apply jointly if you live with a partner (eligibility rules can be found with a ‘GOV.UK shared ownership’ google online or via share to buy website. If your joint income is above the maximum income allowed, it’s completely possible that one partner can apply instead of both of you (this is not advice, I’m just stating what is possible). Anyone who took this route would need to consider what is means for your affordability and application for mortgage rates as everything will depend solely on that one persons income and credit file instead of both of you. It is worth speaking to a mortgage broker first to understand what the best option would be for you. Hope that helps, and good luck!
UPDATED DOWNLOADLINK (First Time Buyer Pack) - gofile.me/7uFWx/zKiEM82G5
Thanks for this, I actually found you via that original shared ownership video! Looking into it all for ourselves for 22/23
Ha ha, I do cringe when I watch that! Hopefully the affordable homes program will be available when you look to buy!
Thank you Alex for this useful tips, I have been scared to look at shared ownership but your video has been helpful. Is all about listening to the right stuff from the right people. Is time to make a move
Thanks for watching Daniella and your kind words!
Hello Daniella, pls did you make the move? And what were the pros and cons? Thanks
Just the start I needed . Thanks.
Excellent Alex!!!! I will have look at your other Vid on Shared ownership. Thank you.
No worries Dee, Hopefully the affordable homes program will come out soon! Catch you soon, take care.
Really appreciated this video Alex. Is a chat possible regarding these subjects
Thanks very much and indeed! Please book a free chat here - link.alexkerr.co.uk/mortgage/ftb
Question lets say the property is 50% share & I finish paying that off but decide i want different house does the developer pay you 50% back or you got to find someone to buy your share? Edit: that rent you pay each month that just goes to the developer, in other means its dead money rent paying out, don’t go towards nothing?
You can sell the property if that’s what you want to do… The money you put towards the rent does not go towards your share or mortgage.
Hi great video really helpful thank you I’m beginning to look into moving out for first time… shared ownership sounds good, any idea when this new scheme will be introduced (involving maintenance costs) I think this could play a role in my decision. Thanks
Glad it was helpful! I have still not heard anything about it but as soon it comes out I will get a video out in the channel!
Thanks Alex. I dont need a mortgage so does the association just work out whether i can pay for the rent or not. My credit score is poor. Would that affect it. I dont have any debts.
@@AdmiringFjord-om5bq you shouldn’t have an issues with credit as you don’t need a mortgage… so it would come down to an affordability check
@@alexkerrmortgage ok lovely. Thank you x
Thank you mate, extremely helpful.
Thank you for watching!
Thanks Alex, we are planning to go shared ownership this year. Hoping the cost of living dosent impact too much on the interest rates.
Crept up a little bit lately but hopefully no more.
This scheme would be great if it was on older property’s or houses, therefor eliminating the service charge.
Completely agree, hopefully they will be bringing schemes out for resale properties!
Some people do equity loans to assist with buying older properties. But note that equity loans tend to have higher interest rates than a mortgage.
Hope the right to buy proposal from Boris includes shared ownership.
I'm really worried about ground rent and service charges going up exponentially. Or faster than my wages increase.
I feel like housing associations would be wanting to hide this information to catch me out.
It’s always in the contract… Mortgage lenders will not lend if they think these increases will be too high.
Great video Alex, thank you for all the information!
When we start the stair casing to buy more percentages of the property, can we add it to the mortgage? Example: I am looking to buy a 50% of a property, in case in few year we want to buy another 25% would the bank accept it and recalculate the mortgage?
Thanks :)
When your deal ends then you remortgage with another lender you could borrow the extra to buy more shares at that point… Or if your current lender allows it you may be able to do what is known as a further advance, which is a bit like a top up of your current mortgage.
Hi Alex - this was incredibly helpful, thank you. I'm exploring shared ownership as I cannot afford to buy on the open market. I'm 55 this year though and I wonder if there are any issues I should be aware of here - like, how many years mortgage could I get given my age? I'm also self-employed and don't have an accountant - self employed for 8 years. Not sure if that's a problem as the tax office have records of my returns and tax paid etc.
Thank you for your kind words and watching the video. As long as you have submitted your tax returns, then you can use that as evidence of income. However, unless you have a pension when you retire at age 70, then the maximum term you could get is likely nine years. Some lenders do lend up to 75 to 80 years of age, but you need to evidence how you would pay the mortgage assuming retirement age is 70.
@@alexkerrmortgage Much appreciated. Thank you for your time and advice.
@@alexkerrmortgageshouldn't his maximum term be 15 years if he's 55 ?
Hey Alex you said here at 6:31 something about a new affordable homes scheme. When will this happen
This is set to be released in 2022 at some point… As soon as it’s available I will do a video called affordable homes scheme - shared ownership.
Can you buy it if you don't have indefinite leave to remain?
Hi, really useful video. It's there a possibility of using Help to Buy ISA for shared ownership property?
Yes, absolutely, you can use the help to buy Isa on any property
There's a home scheme heylo wanted to know how that work.
Sorry I’ve not heard of this but once I have I will look into it more.
Hello @alexkerrmorgage, thanks for the video! Has the new SH scheme already kicked off? Do you have a video about this?
Not yet, but will do a video when it does!
Hi Alex brilliant video!
I’ve got a quick question if that’s ok. To the best of your knowledge does owning a house you bought with shared ownership( let’s say I own 50% ) restrict me of using it as Airbnb for periods of the year ( I’m Normally out of the country for 3 months every year)
Thanks in advance .
Thanks for watching! Any property you bye to live in, would have a restriction for Airbnb… I think some buy to let mortgages allow you to rent it out on Airbnb, which means you can’t ever live in it.
Would you recommend using the housing to sell the property or use a local independent one.This is our first purchase and we sre thinking off selling.
As long as your property ends up on right move etc then I hardly think it makes any difference... I think in most cases it sold through an agent so I would public go that route to be fair as the agent will be looking to sell the property. I would just doublecheck what the housing association rules are first and then go from there.
If I own a property but I want to relocate let's say London can I sell my current property or transport it into a shared ownership?
You can sell your current property and buy a shared ownership property… But you can’t convert your current property into shared ownership.
Hi is shared ownership a good option for second time buyer. But someone who is wanting to buy a larger house that they wouldn’t be able to afford the 15-20% deposit for without? Thank you
@@lukelynes-rq6uy shared ownership is better then renting. Always try to buy outright but if that’s not an option then absolutely you can buy more shares or use it as a stepping stone.
And also what if the property value is less when you come to sell than it was when you bought it? Do you lose money?
Hi Alex thanks a lot for this email, it actually opened my eyes on few aspects of shared ownership
however, I still have couple of questions to ask regarding shared ownership
what is the best way to get in touch with you ?????
Thanks a lot
No worries, here is my email!alex@mortgagechain.co.uk
I find it extremely Unfair: Help to buy allows couples to use 40% Funds free for 1st 5 years, Where as a shared owner has to pay Rent of the remainder of unpurshased share. How is a shared owner suppose to save to start staircasing.
The affordable housing scheme will soon be with us, and this will allow you to purchase extra shares in one percent increments rather than 10%… This will go towards solving your problem!
But how its with selling shared ownership
Just like any other house…
When is this reform due for shared ownership?
It was supposed to come out this year, still waiting… Typical government schemes!
Will the reforms apply to Wales as well or just England?
This scheme was supposed to come out this year but we have heard nothing so far! So I'm not sure at this stage, however soon to is available I will do a video and explain who is available to!
Does the help to buy scheme coming to an end impact shared ownership?
This does not affect shared ownership at all…
The scheme seems ok, but by the time you’ve paid out
1. The mortgage repayment
2. The rent
3. The service charge
4. Ground rent
And all
Other bills most will be skint at the end of the month! Cheap way in and then suffer month on month for only a small
Share! That’s just my
Opinion
Respect your opinion… Thank you for watching.
alexkerrmortgage thanks a lot for the content!
I'm planning to buy a shared ownership property. however, the build isn't finished and does not have a showroom. but the estate agent has said the photos matches the property. is this normal? or does anyone know?
This is fairly normal… Generally speaking the earlier you buy it the more packs you may get. Just do your research on the developer if you can!
Do as much research on the housing association as possible
Me and my wife earn combined over the £80k threshold. I earn £60,000 salary on my own, can I apply for a shared ownership mortgage on my own? We are first time buyers and without this option it seems there is not much else support out there!
This is quite complex to answer over a message. Feel free to book in for a free chat so I can go through all of your options with you. Here is the link - link.coursecreator360.com/widget/appointment/mortgage-chain
Hi Alex, I am going to sell my only flat and thinking at Share to buy scheme. Is that possible as I owned a property in Uk before? thank you
Yes it should be fine. Check properties at sharetobuy.com
Isn't shared ownership a total rip off? You "own" a chunk of a lease and the landlord ( An HA -horrendous standards in that sector currently) whom simply charge you for all their terrible repairs and can price hike the service charges exponentially. Its ownership in name only, in fact your mortgage is propping up the HA's dividends and you will never be able to buy the freehold (in most case)s and will have to burden the costs all major repairs. IT IS A MASSIVE CON! Its better for people on low incomes to have access to good repair social housing which is non existent as all the HAs now build shared ownership homes with token minimal social properties to cover the "we are a charity "hogwash. In fact all the people in low income properties whom provide the rent to be able to subsidise the new builds are battling, mould, vermin, disrepair as a result of the money garnered from those rents being diverted into revenue motivated schemes where the service charges will forever be elevated unless regulations come into force to keep them reasonable. You own a debt that is all. Please also look at all the reviews on trust pilot of ANY HA you wish to buy from, as many have been trapped into unsellable properties due to cheap building products and terrible standards of build. People buying to let and renting out the properties on a SO are also responsible from depriving those whom actually need homes to LIVE IN from decent homes.
Appreciate your thoughts and certainly a wise idea to check Trust Pilot. There are some good housing associations out there, and I know this game has been positive for some people, but it’s impossible to account for every single shared ownership property in the country.
Hi, what if I am able to save the remaining percentage I do not own. Can I staircase by purchasing it cash?
I believe you can purchase it using your own money or mortgage money… But just double check with the housing association!
Hi , great video. My question is, can you qualify for a share ownership mortgage if you are paying a personal loan ? I got into a bit of a financial difficulty during 2020 and I’m have a loan. We have never missed a payment and we have saved £20k for a deposit.
The other thing is we are moving to another town, are there any restrictions to buy once we arrive?
Thanks
It’s absolutely fine to get a shared ownership mortgage with al loan.The lender will just deduct the loan payments from your income, and as long as it still fits affordability, you will be fine. There are no restrictions on location or schemes for locals etc. You can obtain this scheme anywhere in the UK.
@@alexkerrmortgage hi thank you for your reply. That’s great. We are moving from Jersey to Liverpool as it’s more affordable. I’ll start my research.
Many thanks
Is it common/possible to buy shared ownership for households with high income (for example 120K joint income in London). I’ve been searching online and some have a max income requirement.
How easy is to sell the share after a few years of ownership? Is it exactly same process as for full ownership?
Thanks for the video!
I’m in a similar position so I thought I would respond since I know the answer to your question. All shared ownership schemes have a maximum income and credit historamount and this is usually £90,000 in London (£80,000 outside London).
You don’t have to apply jointly if you live with a partner (eligibility rules can be found with a ‘GOV.UK shared ownership’ google online or via share to buy website.
If your joint income is above the maximum income allowed, it’s completely possible that one partner can apply instead of both of you (this is not advice, I’m just stating what is possible). Anyone who took this route would need to consider what is means for your affordability and application for mortgage rates as everything will depend solely on that one persons income and credit file instead of both of you. It is worth speaking to a mortgage broker first to understand what the best option would be for you.
Hope that helps, and good luck!
@@AntoniaMarcella Thank you!
@@SimoneFisicaro no worries! 🙂
£90,000 in London and £80,000 outside London is the maximum household income!
What if your income is higher than 10%?
Sorry, I’m not sure what you’re referring to, if you could expand a little bit that would be great.
Can someone with a good deposit with an income of £36000.00 per year who no longer works get this type of accomadation
Where does the income come
From ?
Can someone tell me if this will still be available in the next few years?
Yes, it should be as it’s only just starting.
@@alexkerrmortgage Good, thank you for answering my question. I am absolutely clueless about all of this.
Dont do it, that is rule 1. Very few manage to staircase and the ongoing costs will rise and rise. Most are glad to get out.