CORRECTIONS 1) I made a mistake on the graphic with Deepa’s Shared Ownership flat. The share she owned was 75%, not 70%. The calculation should otherwise be correct. 2) At 11:58 the graphic reads 'his [Chris] 30% share was worth £332,500 in 2016', this should read 'the 70% share he didn't own was worth £332,500', as his 30% share was only worth £142,500 - thank you Steve Aylwin for spotting the mistake!
I would add 1 huge threat to shared ownership nowadays: RPI+0.5% rent increase. It was mentioned in the video, but I think we were underestimating the risk until this year, when it is starting to be obvious that RPI is and will stay very high. Then, in the next couple of years the housing market is set to drop so from the promise of paying up to 3% of the property value in rent you could quickly end up in paying 4 or 5% which ends up being above the market rent (mind you are covering the service charge as well). Here's how it works: You buy a 25% of a 600k worth 2 bed You pay 13500 in rent (3% on 450k) and 3500 in the service charge, so 17000 in total. That is just 1417 per month so not bad for a 2 bed in London (mind that you already bought 25% so for the full flat it looks rather like 1889 which is still decent). Now how the magic happens: After 1 year your rent is up RPI+0.5% so 13.1% for April 2023 increase and after 2nd year another 12% (those are current consensus estimates) so up 26.7% in total just after 2 years. At the same time your equity is probably down by 15% which are estimates on how the market will do in the coming recession. Let's do the math again: 13500+26.7%=17100 (1425 monthly) You would still be paying your service charge which will probably go up as well so let's safely assume you'll end up with paying 1800 for your 75% share (rent + service). That translates to 2400 for 100% of your 2 bed and now I bet you could already find something cheaper in the market - mind that is just after less than 2 years! Now the HA which boasted about a "subsidising" your rent so that you pay only 3%, after less than 2 years will be charging you 17100 on the 15% reduced equity of 382,500, so 4.47% and that is still without your service charge which BTW is covered in the private rent (I don't really know what HA is subsidising here). And then you'd probably decide you'd like to be out of such deal asap but... Who on earth would buy such a bad deal from you?!? I believe that in the next 2 years we will be having huge numbers of people TRAPPED in SO with huge bills and completely unable to sell. My example is completely realistic and the fact that most 2 beds in London are not charged a "subsidised" 3% but rather 2-2.75% will not help too much as well. Note that the scenario goes drastically wrong just after 2 years and you'll be exposed to unfair rent increases for a couple years more normally (close to forever as realistically unable to sell). Please read it as an update to this piece and as a WARNING. Otherwise very good, informative and unbiased video! Thanks a lot for doing a great job!!!
Very well explained and enlightening. The thing to remember when dealing with any management company, whether leasehold flat or shared ownership is that you are swimming in shark infested waters! They are out to get you, they most certainly do not have your best interests at heart , they simply want your money and as much of it as they can get.
this content is high-quality mate. I have an appointment tomorrow with a shared ownership developer for my first ever property. I really appreciate you laying all this out. I will be very skeptical and read everything they put in front of me. Made lots of notes, Thanks.
Thanks, Sam. I appreciate the kind comment. I don’t know if you’ve watched my other videos on Shared Ownership? Hopefully you have! Good luck with your appointment later! Let me know how it goes
@@SelfInvested Hi, I typed out a big reply but it didn't send for some reason. If you have 2 comments then that is why. So the appointment went well I think, your other videos were helpful with arming with some questions to ask so thanks for that :). The lease is 999 years, with no ground rent (peppercorn rent?), 10-year structural warranty, and 1-year internal warranty on white goods. They mentioned that the service charge is managed by another company who handles all the concierge etc and may rise, but I haven't seen by how much. One thing that is sticking out is the fact that although it is still not completed, the building is constructed to 2017 regulations instead of the post-Grenfell ones. They mentioned that they have already been pre-approved for their ESW1 form with some notes on things they need to update such as fire breaks etc but they haven't actually got their ESW1 form yet and won't until the building is finished. I'm a bit concerned that they might not get the approval for whatever reason but at the same time, I think that the warranty will cover me if there was some issue. The housing association is Clarion btw.
Thank you. This has been very informative. I'll check your other videos as well. I know someone on this scheme who ended up paying almost 20k for renovations done on their propery. Everyone in the same building with this scheme had to contribute between 20k-30k. It ruined many people.
Yeah, I don’t think the scheme is fair. People that use the Shared Ownership scheme are usually more financially vulnerable than normal leaseholders generally, which makes such bills even more difficult for them!
Was looking forward to seeing your review on this. Must say that documentary really opened my eyes and dig for more info into this scheme. Was on the fence at first but reading the reviews, policies and reports about it in detail especially with the new proposals, I’m not convinced the scheme is for me. Fascinating because the Shared Ownership Week they held almost convinced me to consider it 😂
They should give people the full picture when selling the scheme. However, it is not very transparent, so after people sign up then find out the true reality, they’re disappointed and/or feel cheated. As the experts said on the show, it can work for some people, but it is deeply flawed! Did you learn anything new from my review?
Agreed. Definitely flawed. It’s like you’ve been set up to lose by the people who you thought would help you win. I did like your breakdown, was very thorough (even though I dislike maths lol) I did know most of the things you mentioned but I did find the sites you looked at very useful and will be using that for reference whilst I’m researching. I did see you were on the Leasehold Knowledge site too which has been an interesting read. What I’ve taken away from this is that I think due diligence is so important when it comes to the schemes and that if you are considering this as a way onto the ladder, then having a plan is super important if you want a way out.
I think shared ownership can help get ppl on the property ladder but it seems like the monthly outgoings can often be higher compared to those who opt to buy a property in the conventional way. I get the impression that gov schemes are based on the notion that peoples salaries will increase overtime which can make staircasing possible even in the event of increasing house prices but as we know to well wages for alot of people are stagnating.
I think that’s a great point you make about the government expecting people’s salaries to increase so that they can staircase to 100%. I think that could be true about the Help to Buy Equity Loan as well. In reality, the monthly costs (excluding rent and mortgage) will be the same as ordinary leaseholders with a comparable flat in the same build. However, these costs will account for a higher percentage of the shared owner’s income (and so costing them more relatively). This is because it’s likely the ordinary leaseholder will be on a higher salary, evident in the fact they were able to buy their property without shared ownership. The income difference could be massive as well if the shared owner only owns 25% of their home. Another problem is that a lot private developments provide services (paid for through service charge) to cater for people that can afford 100% of the purchase price, so when shared owners buy into such developments, their home can quickly become unaffordable!
Great video. I came across shared ownership recently and thought it was AMAZING. Cheap home in London but all that glisters isn’t gold. It seems like great scheme that has massive potential to become a scam!
That's one of the problems with Shared Ownership - it's not very transparent. I think that's a big reason why people can end up disappointed by the scheme. The scheme can work for someone, though. The important thing is to do as much research as possible so you know what you're signing yourself up to. There are some useful resources out there, such as: www.leaseholdknowledge.com/advice/shared-ownership/ and www.sharedownershipresources.org/ (launches March 1st) I also have a Shared Ownership playlist of videos: th-cam.com/play/PLUG_SDz9gLQI3lKk_GIxi9Kgn_GeCaDDp.html
Wow that service charge increase , 😤😤😤😤 you could renovate a bathroom or possibly the kitchen with that money Thanks for the breakdown of each persons story , I will definitely watch this on my day off ✅✅✅✅👌🏾👌🏾👌🏾😝 There are way to many pit -falls with this shared ownership scheme My sister has a new build and it’s not all that It’s built cheaply & poorly , lack of privacy ( as all new builds are cramped together), barely any garden , terrible parking , they lack character and identity But it’s a house , so I can’t really complain Just ridiculous
Thank you for watching! At least your sister got a house. Hopefully she can staircase to 100% and buy the freehold. A lot of the problems with shared ownership concern their leasehold status and shared communal spaces (which require a service charge to maintain). If your sister avoided those problems, she might not have done too bad for herself!
Great video! Just a heads up when you were talking about Chris' rent at the 11:58 mark your slide says 'his 30% share was worth £332,500 in 2016' - this should read something along the lines of 'the 70% share he didn't own was worth £332,500', as of course his 30% share was only worth £142,500.
Thank you! Keep doing your research and make sure if you use the scheme, you go in with your eyes open. There are some good comments under this video which are worth a read. Going for a shared ownership house could be a better alternative to a shared ownership flat because you could avoid the issues with leasehold properties. Just make sure if you staircase to 100%, you have a right to the freehold! And a lot of new build houses have service charge, so make sure you're happy with the cost of it!
In your opinion who would be the ideal candidate for shared ownership? I thought single and low income but with all these costs like service charge jumping so high, im having second thoughts .
Cover your question in this video: th-cam.com/video/TJ6KK89dA4Y/w-d-xo.html Also, I compare the Help to Buy Equity Loan with the Shared Ownership scheme in this video, I think you’ll find it interesting: th-cam.com/video/kkfCOIj60IM/w-d-xo.html
I think these schemes are designed to trap the tenant in the property - as long as the tenant cannot sell his share to someone else, he is liable to pay the service charges, ground rent, maintenance costs and the subsidized rent on the unowned portion (which goes up with inflation.) It's a way for the freeholder to 'outsource' all the liabilities which come with owning the property while still keeping upside to the property price. It's a very bad deal for the tenant/shared owner! Plus the lack of statutory right to extend the lease for the tenant. I think it is just one of the many things is very fucked up about the UK at the moment. In the end it goes back to the balance of power between the land-owning elite and the people. Shame!
This scheme, specifically, is heavily flawed, and the way it is promoted is not transparent - in fact, it's misleading. I just hope people do their homework before signing up!
Fab video, thank you. Great analyses of the situations. I am hugely sympathetic to the cladding scandal and campaign actively for justice to protect leaseholders from all costs associated with fire safety remediation and interim measures - however a lot of the "downsides" of SO are, as you say, related to general leasehold problems and reform is very very very overdue. Should be abolished IMO following Scotland's lead, but that's unlikely to happen so at least reform, if it comes out of it, would be the one positive from the cladding scandal. SOers just need to do their research, read and understand their lease and all sales documents including HA fees lists; when done right and carefully, not as a "step" on the ladder but as a means to go towards owning your own home, SO is a good idea. All the complaints I've ever heard about it that are not to do with cladding, the purchaser would have known beforehand if they read what they signed up for.
I think you're right, but there were things I didn't know, such as the 'assured tenancy' status of shared owners and how easily they could lose their homes if they fall behind in rent. Hopefully, shows like Panorama and videos like mine can shed more light on the scheme (in an easily accessible format) so people can make informed decisions, rather than go into the scheme blind.
@@SelfInvested Yepp, I am in the middle of a purchase right now (only at mortgage stage) and did the research beforehand and continue to. Giles/nearlylegal's blog gave me the full picture of the legal implications of AST liabilities for Shared Owners - and of course LKP. The info is out there and to sign up to anything without understanding it in full is not smart! I don't think not being a legal expert is an excuse, I agree with you as you mention in the section about the short lease lady - you have the onus of preparing yourself for all eventualities as the person signing up for it, then ask an expert (or even moneysavingexpert forums!) if you don't understand something. It's no good saying "they didn't tell me" when something crops up with a leasehold/SO home - you *really* need to rely on your own research to figure out if it's worth it for you. If it's an "investment" or "step up the ladder", not a means to owning a home over the long-term, walk away - SO is not for you.
@@impamiizgraa You're right. I didn't want to be too harsh on the short lease lady, but I think that was something she should've understood before purchasing the property.
My solicitor failed to advise me on marriage value on my latest purchase and the short lease he just said it’s ok for you but you may have trouble selling it. He didn’t advise me to get the seller to extend. I wasn’t aware it was even an option. Unfortunately I didn’t understand the sheer costs of a short lease. What do we pay solicitors for?! Despite having three previous shared ownership in my life they were all new when I bought them. The housing association didn’t of course advise me of the costs and nor did the person I was buying it off. I felt well and truly let down by all. I am fortunate I can sell it on the open market and do back to back Staircasing and the new buyer gets the freehold. However choose your solicitor carefully. Read your leases and never buy one less than 80 years I have learned the hard way. This way though I pay for Staircasing costs too. Don’t forget it is £300 roughly for a RICs chartered valuation too to even put it on the market, which lasts only a few weeks. Absolute con in my opinion.
Great advice! I had problems with my first solicitor as well. You do need to choose them carefully. Thank you for your contribution! Sorry about your experience. At least you can sell and move on!
Thank you for making this video. I am currently in a Shared Ownership property and even though I enjoy my space, I am in a situation with the cladding problems and high service charges . I wish I had just saved a bit more cash and bought in the traditional way. Personally I would advise against going into SO.
You're welcome! Sorry to hear you have been caught up in the cladding scandal. The fact as a shared owner you have to pay 100% of service charge I think makes it unfair. I agree - if I had a realistic chance of of buying the traditional way in the foreseeable future, I'd avoid Shared Ownership. I see as an option to consider when the only long term alternative is renting... I hope you escape it!
Hi there. Just wanted to say that your content is really good and eye opening. I moved into a shared ownership property in Tottenham Hale, London (Coppermill heights) with my ex many years ago and a smaller issue we discovered at the time was with our energy supply. My memory is hazy about the details but basically, our building was serviced by a small energy provider (not one of the big 5) We were tied to them so we had no other options and the bill’s felt expensive at the time. I think we were off grid so a central boiler system was in the basement but I could be totally wrong there. Before purchasing our share we had to attend a meeting where they discussed the building. They talked about how we would have a green energy supply which was far more eco friendly. It sounded great and I was too young/naive at the time to enquire more. It was a small issue in the grand scheme of things but I like having my agency and not adding to costs.
Thank you, Jason. Are you happy with your place now? I know the scheme does work for some people. The main reason I make these videos is to open people’s eyes to the scheme, not to necessarily tell them to avoid because everyone needs to make decisions based on their own specific circumstances...
@@SelfInvested well, we broke up but fortunately it was not in my name. Having seen your other videos on shared ownership I’m kind of glad I wasn’t legally tied to the property. I think together we would have had the issue you identified where we would struggle to buy more shares. I imagine that property has also doubled in price. Hoping to complete on a house very soon where the monthly mortgage will be £800. I’ve realised that in a lot of cases, in London especially, it can be significantly cheaper to have a mortgage on a home compared to renting. I don’t know anyone renting a 1 bed flat paying less than £1000 in north/east London.
Thank you for watching! I did talk about Grenfell but I edited it out because the original video was too long, and it's an issue that shouldn't impact first-time buyers. It's more of an issue for current owners, but I will make a separate video on it nonetheless! I'll also do one on leasehold and freehold...
So I was able to speak to Deepa and there was more to her story that wasn't shown on Panorama. She has actually been unable to mortgage for a number of reasons and is stuck on quite a high interest rate, but I want her to tell her story because she's agreed to do an interview for the channel. I'll be sharing a post about it in the next week or so, so make sure you keep your eyes peeled
Thank you very much for explaining in more details about these individuals' circumstances. I was especially quite worried about Giulia's case and how the service charge can go up so steeply. We are in the process of applying for shared ownership so this is a very useful video for us. can't thank you enough for opening our eyes and being more aware of pitfalls.
I'm really glad you found the video so useful! I have a video coming out next week in which I talk to a former shared owner about her experience selling her shared ownership property, so keep an eye out for it, I think you will find it useful as well. Also, Deepa from the Panorama episode has agreed to talk with me about her experience. She wants me to get people's questions ahead of time so she can answer them on video. I'll be posting about it soon, so please keep an eye out for it!
@@SelfInvested We're also quite worried about the ground rent scandal as we saw the old news about it back in 2018. Perhaps you can cover this in your future video as well? th-cam.com/video/DRkbN6k2v_M/w-d-xo.html
@@Tree0fLife Yes, definitely plan to do a video on the leasehold scandal. Are you buying a new build? Which developer built the home? Are you sure there will be ground rent? The developer really shouldn’t be charging you ground rent because it’s likely to be abolished within 14 months. Check this video out if you haven’t watched it already: th-cam.com/video/oiF_4K-JJPk/w-d-xo.html
Great video Lemuel, you went in depth and sign posted really well! I went to watch the Panorama episode after seeing your video. I agree with pretty much most of what you said but especially the short lease segment. I find it hard to believe that Kelly's Solicitor didn't explain the short lease to her because the duration of the lease and how much time is remaining is part and parcel of the lease itself. Back when I used to do conveyancing, it was pretty much the first paragraph in the lease report so, i'd be interested to know if Kelly just didn't understand, took no notice or if she genuinely wasn't told. I look forward to watching more of you. Just subbed!
Thank you for the sub, Faizah 🙏🏿 Are you interested in Shared Ownership? There may be more to the story with Kelly. I was fortunate enough to speak with Deepa (the first shared owner) and she told me more about her experience and there was a lot left out of the episode, I guess because there was a lot to fit into 30 mins. I hope to interview her so she can share more of her story.
@@SelfInvested thanks for responding! I was torn between H2B and SO but after some intense research, SO is out of the question. If I can, I'll just buy without a scheme but H2B is definitely still on the table. Oh wow, I'll be very interested to watch an interview with Deepa! Very well done!
My pleasure. I appreciate the comment ;) Personally, I’d prefer to buy without the H2B if possible because there’s evidence to suggest people using H2B pay more for their properties than non-H2B users. I’ve done quite a few videos on H2B. Please have a watch and let me know what you think!
@@SelfInvested I just watched both and this is so informative it just always looks like there is a lot of neglect in this model. So many moments i was shocked with so many of the rules and regulations.To be honest it looks like business as usual for the government and at the cost of the most financially vulnerable consumer.
Thanks for this video analysing the panorama documentary. I really appreciate your thoroughness... I did find the programme a bit one sided in that they could've shown the positive side of shared ownership rather than just the negative side. Also as you've identified, a couple of those negatives (short leases and service charges) are attributable to leaseholders in general, not just shared owners.
You're welcome Vic! Yeah, it wasn't very balanced. The one person they interviewed who was in support of the scheme (the CEO of NHF) didn't speak as well as the two law experts that were on the other side. I think one thing to remember about the lease extensions and service charge is that you are responsible for 100% of the cost, regardless of what percentage of the property you own, which is unfair in my opinion. Also, as a shared owner you have a weaker ownership status than a leaseholder. I think a major problem with the scheme is that it isn't very transparent, so people don't fully understand what they are signing up to with shared ownership. I think more honest information about the scheme (from official platforms, such as the Share to Buy website) is the single easiest thing that can be done to improve it!
Not all share ownership involve big amounts of money we bought a 2 bedroom new build house in lincoln as being 57 a mortgage repayment for 140000 was to much so 25 %=35000 paid in full from a inheritance rent services charge was £241 that 344 a month less than our rent we payed when we get to 67 rent paid if our pension is not enough and when we die our children still get a inheritance when sold we only want 25%so this gives us security not to be asked to leave by aland lord I notice all shared ownership vids are about london with unbelievable prices any body my age should consider shared ownership dont look at it as a investment but something to be secure in not at the feet of landlords
You make a good point and your experience shows that it can work for some people. That’s why it’s important for people to do their homework and/or get professional advice based on their personal situation. Would you be happy to talk with me on camera about your Shared Ownership experience?
Hi Lemuel... Great video. Won't you argue its better to buy a house under the scheme rather a flats/maisonette/bungalows. I understand this may be hard in London.
Sorry Adenike! I didn’t realise that was a question. I read it as a statement. Yes, I agree. Buying a house on the shared ownership would be better, in my opinion, because you could avoid all the leasehold issues. I would just make sure that if I staircased to 100%, I would owned the freehold and not just a leasehold. Also, with some new build houses, there is still service charge to pay for communal gardens and facilities, so watch out for that!
i love your channel thanks for it could youo do a video on what kind of income and deposit is needed to get on the shared ownership sheme i am finding even with a good deposit its impossible to get a mortgage with an average salary on your own
I’m glad to hear you like the channel, Georgiana. Are you ask about the deposit and income you need for Shared Ownership specifically or buying a home generally?
@@SelfInvested either really as a potential first time buyer i feel i dont have enough income as a single person to buy a property in any way. I wondered if you could talk about minimum income and minimum deposit needed
Question: I seen a short lease of 2 years on one property is that possible/ legal? I’m attracted to lowest price and seen a property flat for £10,000 which I calculated and in 2 years it makes £12,000 back to you with a £2,000 profit. Do they then take back the lease/property after 2 years and you have no association with that property anymore? Can it be extended... Or? Could you do a video on this like proper short leases if they are a thing? Are they like a bargain or a rip-off type thing...
I don’t know much about this to be honest, but generally, when a lease ends the property goes back to the freeholder. I can look into short leases for you!
Yes, I agree. Many of the issues faced by shared owners are not unique to shared ownership, but are general issues with the leasehold system in England and Wales. Shared Ownership, however, is still a weaker and less desirable form ownership, in my opinion, because shared owners have less rights than outright leaseholders but are liable for the same costs...
Glad you think so and thank you for watching! Yes, when you staircase to 100%, you gain the right to extend the length of the lease. However, staircasing to 100% isn’t cheap, valuations are based on the current market value of the property, and neither are lease extensions. The law/policy is changing, though, to give shared owners, who don’t own 100%, the right to extend. I cover this change in this video: th-cam.com/video/pdgsFhnlT5Q/w-d-xo.html
The fact that you need to tell people they should read their lease contracts truly amaze me. Do people get into a 30 year mortgage agreement without knowing what they're buying?
shared ownership seem like a honey trap for the housing associations...they ''dont make profits'' but also are not shy of increasing their charges by as much as 100% in 10y - despite most homes being new and in theory covered by new home 10y warranty - also if they need so much money for maintenance - we can only assume quality is zero - hence the Q - why do the homes cost so much to begin with if they're so low quality?!
that been said people also need to be more careful and research and understand the pitfalls of this scheme - dont just think cz you can buy 25% or 65% - you're a homeowner - you have the right of a tenant (or less!!!) but the obligations of a homeowner
Prices are ultimately determined by supply of homes and demand for them... I think you get better value for money with older builds... The government plan to introduce a New Homes Ombudsman to address the issue of poor quality new build homes...
@@SelfInvested yes but can you ever trust the governments? they work hands in hands with developers ... personally if i coudl afford id buy the land and build my own home - day dreaming of course
Hi Lemuel, great video!. Would you say it is better to buy a house under the scheme rather flats/maisonette/bungalows. I understand this might be difficult in London as it seems outside London homes have better options. What is your take on this? What kind of sellers should people avoid too? Housing association/developers/management company? Many thanks 😊
Sorry Adenike! I didn’t realise your first comment was a question. I read it as a statement. Yes, I agree. Buying a house on the shared ownership would be better, in my opinion, because you could avoid all the problems with leasehold homes. I would just make sure that if I staircased to 100%, I would owned the freehold and not just a leasehold. Also, with some new build houses, there is still service charge to pay for communal gardens and facilities, so watch out for that! In terms of the good and bad housing associations, I’m not sure. I would have to do some research!
@@SelfInvested thank you yes it was but I posted too earlier! Outside London people have found SO to be a very good options. The housing market is affordable and good growth. I have found them to offer really low service charges but I think this is because they are houses and not not flats. Thank you for sharing
I have a SO house outside London and my service charge covers the building insurance only. I don't regret doing this as it was an affordable option for me as a single parent, however I do understand the difficulties around staircasing to 100%
CORRECTIONS
1) I made a mistake on the graphic with Deepa’s Shared Ownership flat. The share she owned was 75%, not 70%. The calculation should otherwise be correct.
2) At 11:58 the graphic reads 'his [Chris] 30% share was worth £332,500 in 2016', this should read 'the 70% share he didn't own was worth £332,500', as his 30% share was only worth £142,500 - thank you Steve Aylwin for spotting the mistake!
I would add 1 huge threat to shared ownership nowadays: RPI+0.5% rent increase. It was mentioned in the video, but I think we were underestimating the risk until this year, when it is starting to be obvious that RPI is and will stay very high. Then, in the next couple of years the housing market is set to drop so from the promise of paying up to 3% of the property value in rent you could quickly end up in paying 4 or 5% which ends up being above the market rent (mind you are covering the service charge as well). Here's how it works:
You buy a 25% of a 600k worth 2 bed
You pay 13500 in rent (3% on 450k) and 3500 in the service charge, so 17000 in total. That is just 1417 per month so not bad for a 2 bed in London (mind that you already bought 25% so for the full flat it looks rather like 1889 which is still decent).
Now how the magic happens:
After 1 year your rent is up RPI+0.5% so 13.1% for April 2023 increase and after 2nd year another 12% (those are current consensus estimates) so up 26.7% in total just after 2 years. At the same time your equity is probably down by 15% which are estimates on how the market will do in the coming recession. Let's do the math again:
13500+26.7%=17100 (1425 monthly)
You would still be paying your service charge which will probably go up as well so let's safely assume you'll end up with paying 1800 for your 75% share (rent + service). That translates to 2400 for 100% of your 2 bed and now I bet you could already find something cheaper in the market - mind that is just after less than 2 years!
Now the HA which boasted about a "subsidising" your rent so that you pay only 3%, after less than 2 years will be charging you 17100 on the 15% reduced equity of 382,500, so 4.47% and that is still without your service charge which BTW is covered in the private rent (I don't really know what HA is subsidising here). And then you'd probably decide you'd like to be out of such deal asap but... Who on earth would buy such a bad deal from you?!?
I believe that in the next 2 years we will be having huge numbers of people TRAPPED in SO with huge bills and completely unable to sell. My example is completely realistic and the fact that most 2 beds in London are not charged a "subsidised" 3% but rather 2-2.75% will not help too much as well. Note that the scenario goes drastically wrong just after 2 years and you'll be exposed to unfair rent increases for a couple years more normally (close to forever as realistically unable to sell).
Please read it as an update to this piece and as a WARNING. Otherwise very good, informative and unbiased video! Thanks a lot for doing a great job!!!
Thank you!!
Well done for outlining the points clearly and objectively!!
Thank you! I hope you found it useful!
@@SelfInvested Someone I know has been considering the scheme and your video gave extra food for thought so yes, definitely useful 😊
I’m glad to hear it!
Very well explained and enlightening. The thing to remember when dealing with any management company, whether leasehold flat or shared ownership is that you are swimming in shark infested waters! They are out to get you, they most certainly do not have your best interests at heart , they simply want your money and as much of it as they can get.
this content is high-quality mate. I have an appointment tomorrow with a shared ownership developer for my first ever property. I really appreciate you laying all this out. I will be very skeptical and read everything they put in front of me. Made lots of notes, Thanks.
Thanks, Sam. I appreciate the kind comment. I don’t know if you’ve watched my other videos on Shared Ownership? Hopefully you have! Good luck with your appointment later! Let me know how it goes
@@SelfInvested Thanks for the heads up. I am working my way through them now!
@@SamWalsh1 Hope you find them useful!
@@SelfInvested Hi, I typed out a big reply but it didn't send for some reason. If you have 2 comments then that is why. So the appointment went well I think, your other videos were helpful with arming with some questions to ask so thanks for that :). The lease is 999 years, with no ground rent (peppercorn rent?), 10-year structural warranty, and 1-year internal warranty on white goods. They mentioned that the service charge is managed by another company who handles all the concierge etc and may rise, but I haven't seen by how much. One thing that is sticking out is the fact that although it is still not completed, the building is constructed to 2017 regulations instead of the post-Grenfell ones. They mentioned that they have already been pre-approved for their ESW1 form with some notes on things they need to update such as fire breaks etc but they haven't actually got their ESW1 form yet and won't until the building is finished. I'm a bit concerned that they might not get the approval for whatever reason but at the same time, I think that the warranty will cover me if there was some issue. The housing association is Clarion btw.
Do you have Instagram? Can you add me? @SelfInvested_UK
Thank you. This has been very informative. I'll check your other videos as well. I know someone on this scheme who ended up paying almost 20k for renovations done on their propery. Everyone in the same building with this scheme had to contribute between 20k-30k. It ruined many people.
Yeah, I don’t think the scheme is fair. People that use the Shared Ownership scheme are usually more financially vulnerable than normal leaseholders generally, which makes such bills even more difficult for them!
Much appreciated for Clarifying how the system works and for making contact with the lawyer
I'm glad you found it useful! Thank you for watching!
Was looking forward to seeing your review on this. Must say that documentary really opened my eyes and dig for more info into this scheme. Was on the fence at first but reading the reviews, policies and reports about it in detail especially with the new proposals, I’m not convinced the scheme is for me. Fascinating because the Shared Ownership Week they held almost convinced me to consider it 😂
They should give people the full picture when selling the scheme. However, it is not very transparent, so after people sign up then find out the true reality, they’re disappointed and/or feel cheated. As the experts said on the show, it can work for some people, but it is deeply flawed!
Did you learn anything new from my review?
Agreed. Definitely flawed. It’s like you’ve been set up to lose by the people who you thought would help you win. I did like your breakdown, was very thorough (even though I dislike maths lol) I did know most of the things you mentioned but I did find the sites you looked at very useful and will be using that for reference whilst I’m researching. I did see you were on the Leasehold Knowledge site too which has been an interesting read. What I’ve taken away from this is that I think due diligence is so important when it comes to the schemes and that if you are considering this as a way onto the ladder, then having a plan is super important if you want a way out.
Hear, hear! You reminded me. I need to add the Leasehold Knowledge page to the description!
Actually, it's already done!
I think shared ownership can help get ppl on the property ladder but it seems like the monthly outgoings can often be higher compared to those who opt to buy a property in the conventional way. I get the impression that gov schemes are based on the notion that peoples salaries will increase overtime which can make staircasing possible even in the event of increasing house prices but as we know to well wages for alot of people are stagnating.
I think that’s a great point you make about the government expecting people’s salaries to increase so that they can staircase to 100%. I think that could be true about the Help to Buy Equity Loan as well.
In reality, the monthly costs (excluding rent and mortgage) will be the same as ordinary leaseholders with a comparable flat in the same build. However, these costs will account for a higher percentage of the shared owner’s income (and so costing them more relatively). This is because it’s likely the ordinary leaseholder will be on a higher salary, evident in the fact they were able to buy their property without shared ownership. The income difference could be massive as well if the shared owner only owns 25% of their home. Another problem is that a lot private developments provide services (paid for through service charge) to cater for people that can afford 100% of the purchase price, so when shared owners buy into such developments, their home can quickly become unaffordable!
Great video. I came across shared ownership recently and thought it was AMAZING. Cheap home in London but all that glisters isn’t gold. It seems like great scheme that has massive potential to become a scam!
That's one of the problems with Shared Ownership - it's not very transparent. I think that's a big reason why people can end up disappointed by the scheme.
The scheme can work for someone, though. The important thing is to do as much research as possible so you know what you're signing yourself up to. There are some useful resources out there, such as: www.leaseholdknowledge.com/advice/shared-ownership/ and www.sharedownershipresources.org/ (launches March 1st)
I also have a Shared Ownership playlist of videos: th-cam.com/play/PLUG_SDz9gLQI3lKk_GIxi9Kgn_GeCaDDp.html
Wow that service charge increase , 😤😤😤😤 you could renovate a bathroom or possibly the kitchen with that money
Thanks for the breakdown of each persons story , I will definitely watch this on my day off ✅✅✅✅👌🏾👌🏾👌🏾😝
There are way to many pit -falls with this shared ownership scheme
My sister has a new build and it’s not all that
It’s built cheaply & poorly , lack of privacy ( as all new builds are cramped together), barely any garden , terrible parking , they lack character and identity
But it’s a house , so I can’t really complain
Just ridiculous
Thank you for watching! At least your sister got a house. Hopefully she can staircase to 100% and buy the freehold. A lot of the problems with shared ownership concern their leasehold status and shared communal spaces (which require a service charge to maintain). If your sister avoided those problems, she might not have done too bad for herself!
@@SelfInvested sorry lol she didn’t go through the shared ownership scheme , I was just expressing my hate for new build homes in the uk lol 😂 sorry
Haha! No worries. I do prefer existing builds. More for your money!
Great video! Just a heads up when you were talking about Chris' rent at the 11:58 mark your slide says 'his 30% share was worth £332,500 in 2016' - this should read something along the lines of 'the 70% share he didn't own was worth £332,500', as of course his 30% share was only worth £142,500.
Thank you, Steve. You're right! Well spotted! I'll add a note to my pinned comment.
Thank you for your video! You highlighted all the issues so well! At the moment me and my husband are looking into this and this was really helpful!
Thank you! Keep doing your research and make sure if you use the scheme, you go in with your eyes open. There are some good comments under this video which are worth a read. Going for a shared ownership house could be a better alternative to a shared ownership flat because you could avoid the issues with leasehold properties. Just make sure if you staircase to 100%, you have a right to the freehold! And a lot of new build houses have service charge, so make sure you're happy with the cost of it!
In your opinion who would be the ideal candidate for shared ownership? I thought single and low income but with all these costs like service charge jumping so high, im having second thoughts .
Cover your question in this video: th-cam.com/video/TJ6KK89dA4Y/w-d-xo.html
Also, I compare the Help to Buy Equity Loan with the Shared Ownership scheme in this video, I think you’ll find it interesting: th-cam.com/video/kkfCOIj60IM/w-d-xo.html
@@SelfInvested thank you !
Thank you for a balanced view. Very useful!
You're welcome! I tried to be as much as possible...
I think these schemes are designed to trap the tenant in the property - as long as the tenant cannot sell his share to someone else, he is liable to pay the service charges, ground rent, maintenance costs and the subsidized rent on the unowned portion (which goes up with inflation.) It's a way for the freeholder to 'outsource' all the liabilities which come with owning the property while still keeping upside to the property price. It's a very bad deal for the tenant/shared owner! Plus the lack of statutory right to extend the lease for the tenant.
I think it is just one of the many things is very fucked up about the UK at the moment. In the end it goes back to the balance of power between the land-owning elite and the people. Shame!
This scheme, specifically, is heavily flawed, and the way it is promoted is not transparent - in fact, it's misleading. I just hope people do their homework before signing up!
Fab video, thank you. Great analyses of the situations. I am hugely sympathetic to the cladding scandal and campaign actively for justice to protect leaseholders from all costs associated with fire safety remediation and interim measures - however a lot of the "downsides" of SO are, as you say, related to general leasehold problems and reform is very very very overdue. Should be abolished IMO following Scotland's lead, but that's unlikely to happen so at least reform, if it comes out of it, would be the one positive from the cladding scandal.
SOers just need to do their research, read and understand their lease and all sales documents including HA fees lists; when done right and carefully, not as a "step" on the ladder but as a means to go towards owning your own home, SO is a good idea. All the complaints I've ever heard about it that are not to do with cladding, the purchaser would have known beforehand if they read what they signed up for.
I think you're right, but there were things I didn't know, such as the 'assured tenancy' status of shared owners and how easily they could lose their homes if they fall behind in rent. Hopefully, shows like Panorama and videos like mine can shed more light on the scheme (in an easily accessible format) so people can make informed decisions, rather than go into the scheme blind.
@@SelfInvested Yepp, I am in the middle of a purchase right now (only at mortgage stage) and did the research beforehand and continue to. Giles/nearlylegal's blog gave me the full picture of the legal implications of AST liabilities for Shared Owners - and of course LKP. The info is out there and to sign up to anything without understanding it in full is not smart! I don't think not being a legal expert is an excuse, I agree with you as you mention in the section about the short lease lady - you have the onus of preparing yourself for all eventualities as the person signing up for it, then ask an expert (or even moneysavingexpert forums!) if you don't understand something. It's no good saying "they didn't tell me" when something crops up with a leasehold/SO home - you *really* need to rely on your own research to figure out if it's worth it for you. If it's an "investment" or "step up the ladder", not a means to owning a home over the long-term, walk away - SO is not for you.
@@impamiizgraa You're right. I didn't want to be too harsh on the short lease lady, but I think that was something she should've understood before purchasing the property.
My solicitor failed to advise me on marriage value on my latest purchase and the short lease he just said it’s ok for you but you may have trouble selling it. He didn’t advise me to get the seller to extend. I wasn’t aware it was even an option. Unfortunately I didn’t understand the sheer costs of a short lease. What do we pay solicitors for?! Despite having three previous shared ownership in my life they were all new when I bought them. The housing association didn’t of course advise me of the costs and nor did the person I was buying it off. I felt well and truly let down by all. I am fortunate I can sell it on the open market and do back to back Staircasing and the new buyer gets the freehold. However choose your solicitor carefully. Read your leases and never buy one less than 80 years I have learned the hard way. This way though I pay for Staircasing costs too. Don’t forget it is £300 roughly for a RICs chartered valuation too to even put it on the market, which lasts only a few weeks. Absolute con in my opinion.
Great advice! I had problems with my first solicitor as well. You do need to choose them carefully.
Thank you for your contribution! Sorry about your experience. At least you can sell and move on!
Please do a video on leasehold and freehold properties. Thanks.
Thank you for watching! Will do!
Please do. Thanks.
On top of all those fees and charges, the council tax need to be added to the total expense for a shared ownership property.
Thank you for making this video. I am currently in a Shared Ownership property and even though I enjoy my space, I am in a situation with the cladding problems and high service charges . I wish I had just saved a bit more cash and bought in the traditional way. Personally I would advise against going into SO.
You're welcome! Sorry to hear you have been caught up in the cladding scandal. The fact as a shared owner you have to pay 100% of service charge I think makes it unfair. I agree - if I had a realistic chance of of buying the traditional way in the foreseeable future, I'd avoid Shared Ownership. I see as an option to consider when the only long term alternative is renting... I hope you escape it!
😢
Hi there. Just wanted to say that your content is really good and eye opening.
I moved into a shared ownership property in Tottenham Hale, London (Coppermill heights) with my ex many years ago and a smaller issue we discovered at the time was with our energy supply. My memory is hazy about the details but basically, our building was serviced by a small energy provider (not one of the big 5) We were tied to them so we had no other options and the bill’s felt expensive at the time. I think we were off grid so a central boiler system was in the basement but I could be totally wrong there.
Before purchasing our share we had to attend a meeting where they discussed the building. They talked about how we would have a green energy supply which was far more eco friendly. It sounded great and I was too young/naive at the time to enquire more. It was a small issue in the grand scheme of things but I like having my agency and not adding to costs.
Thank you, Jason. Are you happy with your place now? I know the scheme does work for some people. The main reason I make these videos is to open people’s eyes to the scheme, not to necessarily tell them to avoid because everyone needs to make decisions based on their own specific circumstances...
@@SelfInvested well, we broke up but fortunately it was not in my name. Having seen your other videos on shared ownership I’m kind of glad I wasn’t legally tied to the property. I think together we would have had the issue you identified where we would struggle to buy more shares. I imagine that property has also doubled in price.
Hoping to complete on a house very soon where the monthly mortgage will be £800. I’ve realised that in a lot of cases, in London especially, it can be significantly cheaper to have a mortgage on a home compared to renting. I don’t know anyone renting a 1 bed flat paying less than £1000 in north/east London.
hello! Yes for the video about lease hold and free hold! Also you didn't talk about the Greenfeld certificate?
Thank you for watching! I did talk about Grenfell but I edited it out because the original video was too long, and it's an issue that shouldn't impact first-time buyers. It's more of an issue for current owners, but I will make a separate video on it nonetheless! I'll also do one on leasehold and freehold...
Deepa situation- could she not remortgage her situation and get some equity on her property to buy the rest?
So I was able to speak to Deepa and there was more to her story that wasn't shown on Panorama. She has actually been unable to mortgage for a number of reasons and is stuck on quite a high interest rate, but I want her to tell her story because she's agreed to do an interview for the channel. I'll be sharing a post about it in the next week or so, so make sure you keep your eyes peeled
I remember years ago my solicitor stopped me from buying a short lease. Because he said the lease should have been 999 years.
Sounds absurd to say, but it appears you had a solicitor that was actually looking out for your best interests!
@@SelfInvested Yeah I know I was shocked.
Thank you very much for explaining in more details about these individuals' circumstances. I was especially quite worried about Giulia's case and how the service charge can go up so steeply. We are in the process of applying for shared ownership so this is a very useful video for us. can't thank you enough for opening our eyes and being more aware of pitfalls.
I'm really glad you found the video so useful! I have a video coming out next week in which I talk to a former shared owner about her experience selling her shared ownership property, so keep an eye out for it, I think you will find it useful as well. Also, Deepa from the Panorama episode has agreed to talk with me about her experience. She wants me to get people's questions ahead of time so she can answer them on video. I'll be posting about it soon, so please keep an eye out for it!
@@SelfInvested We're also quite worried about the ground rent scandal as we saw the old news about it back in 2018. Perhaps you can cover this in your future video as well? th-cam.com/video/DRkbN6k2v_M/w-d-xo.html
@@Tree0fLife Yes, definitely plan to do a video on the leasehold scandal. Are you buying a new build? Which developer built the home? Are you sure there will be ground rent? The developer really shouldn’t be charging you ground rent because it’s likely to be abolished within 14 months. Check this video out if you haven’t watched it already: th-cam.com/video/oiF_4K-JJPk/w-d-xo.html
DON'T DO IT!
Great video Lemuel, you went in depth and sign posted really well! I went to watch the Panorama episode after seeing your video. I agree with pretty much most of what you said but especially the short lease segment. I find it hard to believe that Kelly's Solicitor didn't explain the short lease to her because the duration of the lease and how much time is remaining is part and parcel of the lease itself. Back when I used to do conveyancing, it was pretty much the first paragraph in the lease report so, i'd be interested to know if Kelly just didn't understand, took no notice or if she genuinely wasn't told. I look forward to watching more of you. Just subbed!
Thank you for the sub, Faizah 🙏🏿 Are you interested in Shared Ownership?
There may be more to the story with Kelly. I was fortunate enough to speak with Deepa (the first shared owner) and she told me more about her experience and there was a lot left out of the episode, I guess because there was a lot to fit into 30 mins. I hope to interview her so she can share more of her story.
@@SelfInvested thanks for responding!
I was torn between H2B and SO but after some intense research, SO is out of the question. If I can, I'll just buy without a scheme but H2B is definitely still on the table.
Oh wow, I'll be very interested to watch an interview with Deepa! Very well done!
My pleasure. I appreciate the comment ;)
Personally, I’d prefer to buy without the H2B if possible because there’s evidence to suggest people using H2B pay more for their properties than non-H2B users. I’ve done quite a few videos on H2B. Please have a watch and let me know what you think!
Useful video, thanks!
You’re welcome! Thank you for watching 🙏🏿
i am gonna watch this programme and watch your video thank you
Oh good! Let me know your thoughts once you do both!
I will do Indeed
@@SelfInvested I just watched both and this is so informative it just always looks like there is a lot of neglect in this model. So many moments i was shocked with so many of the rules and regulations.To be honest it looks like business as usual for the government and at the cost of the most financially vulnerable consumer.
Yeah, there are clear issues with it, and there’s a wider problem with the leasehold system in England. Hopefully there will be reform!
@@SelfInvested I hope April we will see change let’s wait and see
Hi Lemuel, if you'd like to discuss my experience in further detail, please do contact
Hi Deepa, thank you for getting in touch. I certainly would! Please can you drop me an email with your details - lemuelstudios@gmail.com
You sir deserve a like for your hard work
Very much appreciated! Thanks Kenny :)
Thanks for this video analysing the panorama documentary. I really appreciate your thoroughness... I did find the programme a bit one sided in that they could've shown the positive side of shared ownership rather than just the negative side. Also as you've identified, a couple of those negatives (short leases and service charges) are attributable to leaseholders in general, not just shared owners.
You're welcome Vic! Yeah, it wasn't very balanced. The one person they interviewed who was in support of the scheme (the CEO of NHF) didn't speak as well as the two law experts that were on the other side.
I think one thing to remember about the lease extensions and service charge is that you are responsible for 100% of the cost, regardless of what percentage of the property you own, which is unfair in my opinion. Also, as a shared owner you have a weaker ownership status than a leaseholder.
I think a major problem with the scheme is that it isn't very transparent, so people don't fully understand what they are signing up to with shared ownership. I think more honest information about the scheme (from official platforms, such as the Share to Buy website) is the single easiest thing that can be done to improve it!
@@SelfInvested that's true. Valid points. I appreciate your response.
440 grand for a dosshouse in the Smoke! Gotta be KIDDING me!
This was extremely helpful! You are great at explaining. Thank you
Glad it was helpful! Thank you for watching :)
Not all share ownership involve big amounts of money we bought a 2 bedroom new build house in lincoln as being 57 a mortgage repayment for 140000 was to much so 25 %=35000 paid in full from a inheritance rent services charge was £241 that 344 a month less than our rent we payed when we get to 67 rent paid if our pension is not enough and when we die our children still get a inheritance when sold we only want 25%so this gives us security not to be asked to leave by aland lord I notice all shared ownership vids are about london with unbelievable prices any body my age should consider shared ownership dont look at it as a investment but something to be secure in not at the feet of landlords
You make a good point and your experience shows that it can work for some people. That’s why it’s important for people to do their homework and/or get professional advice based on their personal situation.
Would you be happy to talk with me on camera about your Shared Ownership experience?
Great video. Thank you!
Glad you liked it! Thank you for watching and leaving a comment 👍🏿
Could you do a video of someone with a shared ownership outside of the M25?
Hi Matt, sure. I can try. Did you watch the Panorama episode? One of the shared owners was outside the M25, the person with the short lease...
Hi Lemuel... Great video. Won't you argue its better to buy a house under the scheme rather a flats/maisonette/bungalows. I understand this may be hard in London.
Thank you! x
Sorry Adenike! I didn’t realise that was a question. I read it as a statement. Yes, I agree. Buying a house on the shared ownership would be better, in my opinion, because you could avoid all the leasehold issues. I would just make sure that if I staircased to 100%, I would owned the freehold and not just a leasehold. Also, with some new build houses, there is still service charge to pay for communal gardens and facilities, so watch out for that!
isnt the issue of service charge more of a new build problem than a shared ownership one?
you covered it already lol actually
lol no problem! ;)
i love your channel thanks for it could youo do a video on what kind of income and deposit is needed to get on the shared ownership sheme i am finding even with a good deposit its impossible to get a mortgage with an average salary on your own
I’m glad to hear you like the channel, Georgiana. Are you ask about the deposit and income you need for Shared Ownership specifically or buying a home generally?
@@SelfInvested either really as a potential first time buyer i feel i dont have enough income as a single person to buy a property in any way. I wondered if you could talk about minimum income and minimum deposit needed
Question: I seen a short lease of 2 years on one property is that possible/ legal? I’m attracted to lowest price and seen a property flat for £10,000 which I calculated and in 2 years it makes £12,000 back to you with a £2,000 profit. Do they then take back the lease/property after 2 years and you have no association with that property anymore? Can it be extended... Or?
Could you do a video on this like proper short leases if they are a thing? Are they like a bargain or a rip-off type thing...
I don’t know much about this to be honest, but generally, when a lease ends the property goes back to the freeholder. I can look into short leases for you!
@@SelfInvested Thank you sir 🙏
So really the main scandal is the the lease hold one .
Yes, I agree. Many of the issues faced by shared owners are not unique to shared ownership, but are general issues with the leasehold system in England and Wales. Shared Ownership, however, is still a weaker and less desirable form ownership, in my opinion, because shared owners have less rights than outright leaseholders but are liable for the same costs...
Very informative! But if you did staircase to 100% ownership of the property doesn’t that then give you the right to increase leasehold periods?
Glad you think so and thank you for watching! Yes, when you staircase to 100%, you gain the right to extend the length of the lease. However, staircasing to 100% isn’t cheap, valuations are based on the current market value of the property, and neither are lease extensions.
The law/policy is changing, though, to give shared owners, who don’t own 100%, the right to extend. I cover this change in this video: th-cam.com/video/pdgsFhnlT5Q/w-d-xo.html
@@SelfInvested thank you so much for replying😊
My pleasure :)
The fact that you need to tell people they should read their lease contracts truly amaze me. Do people get into a 30 year mortgage agreement without knowing what they're buying?
Sadly, yes. I think some people rely too heavily on their conveyancer and don't read the lease for themselves...
😂 You'll be shocked how many people don't read their lease agreement/contract.
So NO Shared Ownership!
Not a completely no. More a ‘be very careful!’
shared ownership seem like a honey trap for the housing associations...they ''dont make profits'' but also are not shy of increasing their charges by as much as 100% in 10y - despite most homes being new and in theory covered by new home 10y warranty - also if they need so much money for maintenance - we can only assume quality is zero - hence the Q - why do the homes cost so much to begin with if they're so low quality?!
that been said people also need to be more careful and research and understand the pitfalls of this scheme - dont just think cz you can buy 25% or 65% - you're a homeowner - you have the right of a tenant (or less!!!) but the obligations of a homeowner
Prices are ultimately determined by supply of homes and demand for them... I think you get better value for money with older builds... The government plan to introduce a New Homes Ombudsman to address the issue of poor quality new build homes...
Yes, this is correct. You're entitled to a percentage of the sales proceedings, the rights of an assured tenant, and the obligations of a homeowner...
@@SelfInvested yes but can you ever trust the governments? they work hands in hands with developers ... personally if i coudl afford id buy the land and build my own home - day dreaming of course
Link to the BBC Panorama documentary: th-cam.com/video/rZxydf_hLf0/w-d-xo.html
Great Video,
Thank you 🙏🏿
Thanks. The panorama link says isnt available. Is there another link?
I think it’s expired, unfortunately. I looked for it but it’s been taken down…
th-cam.com/video/rZxydf_hLf0/w-d-xo.html
250k in southark is cheap and saves on travel time and money
it was £205k in 2010
What if I am buying a house?
Generally speaking, I think Shared Ownership houses are better deals than Shared Ownership flats
Hi Lemuel, great video!. Would you say it is better to buy a house under the scheme rather flats/maisonette/bungalows. I understand this might be difficult in London as it seems outside London homes have better options. What is your take on this? What kind of sellers should people avoid too? Housing association/developers/management company? Many thanks 😊
Sorry Adenike! I didn’t realise your first comment was a question. I read it as a statement. Yes, I agree. Buying a house on the shared ownership would be better, in my opinion, because you could avoid all the problems with leasehold homes. I would just make sure that if I staircased to 100%, I would owned the freehold and not just a leasehold. Also, with some new build houses, there is still service charge to pay for communal gardens and facilities, so watch out for that!
In terms of the good and bad housing associations, I’m not sure. I would have to do some research!
@@SelfInvested thank you yes it was but I posted too earlier! Outside London people have found SO to be a very good options. The housing market is affordable and good growth. I have found them to offer really low service charges but I think this is because they are houses and not not flats. Thank you for sharing
I have a SO house outside London and my service charge covers the building insurance only. I don't regret doing this as it was an affordable option for me as a single parent, however I do understand the difficulties around staircasing to 100%