Thank you. I returned to the UK after several years. Things have changed a lot & the property market has too. Your transparency on Shared Ownership is to the point, thanks again.
@@pandabossanna yes it has helped. I still feel that oncexI understand tge UK Market better. I can do what I was taught in the US. Property is Property, its about the right connections & I deal only in integrity. Thanks again
Very good video, I needed this info, what’s good about it is that when I’m going to get a shared owner ship I know what to look for in my contracts so the experience is positive
Love the international perspective you give seeing that I'm from America and in real estate. Always love hearing about other experiences. Thank you for sharing!
Great video Anna. I too am a shared ownership owner in London and think it was the best option at the time for me. Buying outright, help to buy and renting are far too expensive in London. Fingers crossed when we come to sell, we won't have too many headaches and it would all be worth it in the equity that we have in the property to help us fund our own house outright!
Thank you :) and yeah I'm really worried about selling to be honest... seems like so many fees associated with it. I've just found out if I want to sell 100% of the property, then I have to buy 100% then sell the 100% on the same day, which means on top of the selling fees, legal fees and survey fees, I'd also have to pay stamp duty on the full price! Madness. I really regret buying now
@@pandabossanna If I understand correctly, you can sell whatever share you own without buying the full 100%. You value the whole flat/house and then your percentage is worth the percentage of that value. To get the full value of the property yes you would have to buy the whole thing. I'd talk to CAB or bring it up again because that's definitely not correct and would very much null and void the whole scheme! I believe you have to let the housing association know you want to sell, they'll try sell it for up to 8 weeks (coming down to 4 weeks in April Changes) and then if they fail you will be able to offer your share on the free market as long as you find a buyer who fits the criteria of share. I'm looking into the scheme though as opposed to being in it so there may be some catch which unfortunately wouldn't surprise me.
This is a really clear explanation- thank you! It really sounds like something to approach with EXTREME caution and aforethought. Side note- I loved the clip of your coffee making!! 🙂
Haha thank you! I need to start doing that again in my videos, just adding more day to day life, but I have become so busy I barely have time to film the main ones! :) I'm glad you found it useful!
Thanks Panda Boss - you are helping so many people understand this with this video and you explain things really well. You can tell you do your research and care about your viewers / subscribers. What you said about having pet and hanging washing out may sound like small things but I don't they are. Great that this level of detail was included. Impressed :-)
Wow very cool! I actually have never heard of this before. It’s cool you can get more. I’ve heard of people polling money into one property as an investment but that sounds a lot different than this. Sounds like it’s doing well!
Yeah it's a great scheme if you can live with the downsides. But fingers crossed it means I can make a decent profit from it when I sell in a few years...
Hi! Why is your solicitor so expensive 4k? Local solicitor in our area is usually 1.5k. Also, why can’t you staircase? You staircase the remaining 60% share from housing association right not into your mortgage so you don’t need to pay penalty or anything am i missing something
Thank you so much for this video. My partner and I are currently going through the process of purchasing a 2 bedroom house where we live in the south west, property prices in our local area are totally unaffordable for local people. We've decided after weighing up all of the pros and cons that this is the right thing for us, we've been privately renting for 19 years and have had some terrible landlords, and the monthly costs of the property we are hoping to purchase are on par with the cost of renting locally, at least this way as you said we are able to build up some equity in the SO property. I know there are many negatives to a SO property and we haven't rushed into our decision, but we feel it may be our only opportunity to get onto the housing ladder. Thank you for not only showing the negative side to SO x
Ahh I’m so so glad I’ve been able to help you in some way! Yes I agree it’s definitely not the best scheme but it’s far better than renting in my opinion :) best of luck lovely! Xx
Really helpful advice as I am in two minds - Overall would you recommend a shared ownership for short term? I’m planning on purchasing 25% for a few years maybe and then selling after? 😊
It's like renting with all the headaches of buying combined. Seems only worth it if you are considered to buy it all eventually. Thanks for the information 👍
Honestly seems a bit worse than renting - i can change my utilities, put my washing outside, my landlord sorts any issues out that we have and I'm lucky in that the place I rent lets me have pets. The only benefits to this seem to be that you are on the housing ladder, your money is going towards the place you're staying in and you can potentially sell the place for a profit. If I were in my early 20s and single it might be more appealing, but I'm in my 30s and married and so want my freedom. For me, I'd rather hold on, save for longer and get a normal mortgage for a place where I get more freedom to do what I want and not worrying about all the stress of the housing market and how much of the property I own. Good informative video though!
For me I'm in a situation where I am not happy at home and want to be able to move out in 2 years and save for at least a £10k deposit to put down. The cost of living crisis is making it even harder for young people like me (21) to get their own place. I want to be able to live happily and if the shared ownership can help me get that quicker then I'd love to do it. My options are limited as I am unable to share with others due to my needs, hence why I'd go for this scheme.
I’m in the exact same position as you (25) I was considering staying at home longer, so that I could buy, but I don’t have that option. I’ve decided to go with shared ownership and I know the flat I’m buying will increase in value. Go for it, your happiness matters 🙏🏾
@@sss2113_ Hope it all goes well for you !! I agree not everyone has the option to stay at home, at least shared ownership gives us the option to get our own property much quicker :)
That is a thorough guide! House prices in London are crazy. You sound like you have it worked out though. Interesting you say you had a lot of regrets...I hope not too many. I love where I live, wouldn't change it for the world, the location and building/gardens are exactly what I hoped for. Keep up the good work
Thank you! :) yeah I think my main regret is that I'm now tied in, and there are things I wish I had known before diving into this (like the fact I pay for all the maintenance despite still paying rent on top of the mortgage!). So glad you love where you live, that's the most important thing. I really hope house prices don't suffer much because of the current situation, I am relying on selling this with a profit to move to my FIRE house :(
@@pandabossanna hmmm, that is tricky to be fair. Feels a bit unfair in many ways to get all downsides but have to share the upside. I hope it works out like you want 😀👍
As someone who is disabled and relies on Universal Credit etc i'm currently considering a cheap shared ownership flat. This is because the 'rent' component of the flat would be covered by the housing element of universal credit so it actually works out cheaper than renting privately. So I can get a brand new flat, somewhere permanent to live, and pay less than what I would have to pay when renting privately!
Hiya, you mentioned about the sort of things your solicitor should look out for when buying via shared ownership - can you throw more light on this please
Great ideas Anna, love your channel. Looking forward to going through the process of buying my first property this year and documenting the journey. Keep up the great work 💕😊
Thanks for the info, unfortunately couldn't go through the help to buy scheme because they've didn't specify job types and restrictions, anyone in the sales industry will be effected massively as they only count 50% of your commission along with 100% of your basic. This massively effects the affordability criteria and mortgage lending amount. So now am looking into the shared ownership to get on the ladder.
Love your coffee machine. 😎 It is a very good deal for shared ownership to help out first time home buyers. We don't have exactly the same in US, but we have some thing called "rent to own." But yours is much better. Questions: 1. are these flats newly built? 2. Do you need to get permission to sell from the corporation if they own 60%, & you own 40%? Liked. Like #4.
Haha me too! Couldn't live without it.. Ohh, we have rent to own as well - a few of the properties here are rent to own actually as well :) For your questions - yes the overwhelming majority are all new builds, although you can get a non new build if you buy from someone who is selling after purchasing a new build. And you don't need their permission to sell. You effectively are the owner - you just have to give them 6-8 weeks to find a buyer first (but this doesn't affect the asking price - it's more to do with prioritising people in the neighbourhood who need properties over people from far away etc). :)
@@pandabossanna That's awesome! I like to live in new buildings. In fact, I only buy newly built buildings, feel clean to live in and feel good to be the 1st owner. Over here, the co-op apartments takes forever to get approval from the board to sell. Yours are better.
@@EasyWealthBuilding You do end up paying a premium for new builds though, so I guess if you are doing it more than once you are constantly losing a bit of money on that premium. But I agree - I much prefer a new house that no one has lived in before! I'm actually building my own in Poland for my financial independence / early retirement so I can't wait to document that! What are co-op apartments? Is it a similar scheme to this?
Please why did you sell? Did you want to buy a different/ new property in full? Was your original plan always to just own 40% for a few years and then sell?
This WAS REALLY HELPFUL thanks. My wife and i are thinking about trying to buy into shared ownership although i would love to find a two bedroom house rather than a flat as we are and always have been in a flat. Great advise and an insight into what we may experience
thank youuuuu, so to confirm - can i ever let out the house in a shared ownership? can i do this without finishing the mortgage? and do i have to finish the mortgage to sell my shared ownership? note to self 24mins SUPER IMPORTANT
Wuestion: you said that paying rent and mortgage goes into your equity , well I thought that paying the rent will be in favor of Stair casing but in fact it is not , it is just paying more money if you think about it at the end the Apartment will cost a lot more than its value on the Market , please advice
Hello, great video. I'm looking at purchasing a shared ownership property once lockdown is over. I thought I knew all there is to know about SO, but you raised some good points about the SO mortgage deposit being higher, and being locked into utility providers. One question though, was your deposit higher because of your debt?
Isabella Maxwell yes partly, although I know a few friends who also had a higher deposit than advertised and they didn’t have much debt. I think they assess you overall just like they would with a normal mortgage, and they tend not to like 5% deposits! You may be lucky post lockdown though, interest rates are so low banks may be more willing to lend!
Hi! Yes of course. Our lease stated that ground rent could be reviewed every 5 years and wasn't capped at how much it could go up by. Although I don't pay ground rent because I don't own 100% of the property, it would essentially make it almost impossible to sell - there was literally nothing to stop them from charging £100,000 for ground rent in 5 years' time. They had to amend the lease to every 10 years and capped at a certain rate. You then need to file the new leases with the land registry and all sorts!
Great video. I thank you for it. I'd to know about rent increases - how often (annually?) and by what percentage, and whether or not the housing association has a cap on how much they increase rent. EDIT: Please could you also give details on the kinds of costs you (may) have incurred as a leaseholder as a result of repairs or improvements done by the HA, e.g, repainting doors, replacing windows, upgrading boilers, etc. Thanks.
Thanks :) it will always vary with each scheme, so be careful. Mine increases rent by RPI on an annual basis, this is written into the lease so they won't increase it by more than RPI (of course if that jumps up, it's a big increase). Service charges are increased in line with what is actually spent. No costs incurred as of yet, but I've only been here for one year. We are due some works soon as we've just been given section 20 notices for 3 new contracts, so who knows how much it will be - they have to issue each of those if the works will cost more than £250 in a year per leaseholder.
Thank you soooo much for your amazing explanation which help me a lot. Please can you suggest which website did you use to find your flat and also how can get in touch with the broker and house association
Hi, great video. I wanted to ask 2 questions: 1) How soon can you staircase after buying the initial shares? If your financial situation allowed, could you do this within weeks of getting the keys? 2) Will you only be considered if you take out a mortgage for the initial share? Or can you still be considered for the shared ownership if you pay the the initial share in cash?
Heya, can I ask, when you talk about hidden costs you refer to when you were reviewing your contracts as a build, that your lawyer picked up on something that other lawyers for other buyers didn'tt and it changed everyone's contract in the building, what were the things your lawyer picked up on please?
@@pandabossanna ah ok that's great, just looking at an older build myself and checked that too. Maybe it's a newer build thing. Thanks so much for responding!
Thank you so much for this lovely informative Video , Please could you confirm if subletting also includes renting a room / sharing the house with somebody is not allowed .
Yes it includes renting a room out. People still do it “on the down-low” but that’s dangerous as you aren’t allowed to have a proper contract in place so people can screw you over! You can live with someone, you just cant have a formal contract.
Lot's of useful info and interesting points, still unsure if I would go into it or not 😄😄I could buy a small flat without shared ownership but am slightly appealed by getting a house on shared ownership
This is super super helpful! Thank you! I’m too looking at buying in London (why you ask! But I just love it too much). Unfortunately Help to Buy and Shared Ownership are the only way I could possibly afford it. SO also seems A lot more available in my chosen area. My biggest drawback would be the subletting, however. I’ve only just started looking into this, but what about a second room and you are still a primary owner. Or even a partner moving in?
Glad it was helpful! :) yes you can have a partner move in, but you need to clear it with your management company AND your mortgage (this is really important - you can have your house taken away if your mortgage company is notified that you didn't disclose this! But also it protects you from the partner having any legal claim onto your property which can happen if they live there long enough and pay enough rent!). You can also have a "lodger" in a second room, but you aren't allowed to have formal rent paperwork, so you're not actually protected if they stop paying you.
Hi! Great one thanks! What a bummer about not being able to rent out s...! I was also wondering if you as the owner are free to sell at the normal market price...? Or not!?
You have to ask the housing association - they usually get first dibs on selling on. (but within a given timeframe i.e. if they don't find a buyer within 8 weeks then you can list for whatever price you wish). Having said that, you do need to get a RICS valuation and if you are listing for shared ownership, you HAVE to sell at the RICS valuation. If you are selling full ownership then you can take another price but usually you have to take any gains/losses fully (which is good if it's a gain but obviously bad if it's a lower price). Hope that makes sense, kind of hard to explain via text!
great video. I'm looking at shared ownership at the moment...single and just want sort of security in one place due to disability, renting private i don't think is ideal as moving around if had to wouldnt be suited.
So you pay into a black hole of cheap 'subsidized rent' with no landlord to cover the costs of necessary repairs andddd you pay interest on the mortgage on the part of the home you own (or bank owns) which also includes the black hole of mortgage interest rates.. surely your better off with one or the other (rent/traditional capital repayment mortgage) not both?!
@@pandabossanna sure, but same with property prices.. so the remaining equity you want to stepladder into owning can run away from you if prices shoot up Also of course, your not contractually obligated to pay monthly with the risk of losing everything that you’ve put money into I guess when renting
@@alanturner4943 I think most people staircase within a couple years - also if you want to buy a house, you're better off buying some of it at a lower rate. If you wait to be able to afford all of it before you buy then the prices will shoot up too... if that makes sense
@@pandabossanna yep that makes total sense, but of course we need to be careful of the narrative of constantly increasing house prices.. if too many people buy on that belief and it doesn’t happen (prices stagnate or fall) it could be an ugly situation for some don’t you think?
That ghost sound was weird man!! Do you genuinely think you have them? Anyway we digress! Great video and explanation.. I never had to consider this as property in my area I could afford and I had the deposit! It is helpful but the pitfalls you highlight are considerable! But it is a way to get a more expensive property than you would normally! Keep up the super content!
Thanks so much :) and haha honestly I do! I often hear weird stuff, and when I had a cat for a week whilst pet sitting, it would follow invisible things or just intently stare at a corner of the room... terrifying!!! Yeah unfortunately in London no property is affordable haha... and when I move out it’ll be to Poland. I’m building a house there to move out and retire early :)
Panda Boss - Personal Finance & Bossing Life how strange, they say animals can see things we can’t. My dog noticed stuff I didn’t when thing happened in a place I used to stay.. and yeah fair point.. London is its own little world of property! And wow that’s amazing! Great plan you should defo do a video on that and show it off as it goes through stages!
Hi, sorry for this dumb question, but what if I have the money with me to pay atleast 25% upfront of the SO, will it be a good idea to go on with it considering I still have to pay the mortgage + rent + fees and bills? I am planning to get SO and live in it for around 3 yrs only then plans to sell it after? Would that be a better option than just renting for 3-5 yrs without actually owning anything?
Hey! If you mean 25% of the full market value then I don’t think you’ll be allowed to buy shared ownership! If you mean buy 25% share with a 10% deposit then yeah. I think if your goal is to sell 3 years later then it’s not worth buying - your buying fees and selling fees will far outweigh what the potential value increase will be.
I think this depends on your individual lease - but usually fine as long as you get permission from the landlord and the mortgage provider, and as long as there is no “formal” rent agreement in place
How about deadlines? I am going through the purchasing process right now. HA is offering an incentive of One year free service charge subject to me using the panel mortgage advisor, panel solicitor, exchanging contracts within 28 days of the memorandum of sale and completing within 30 days of the memorandum of sale. Taking into consideration the current situation and Xmas period this deadline seems unrealistic to me. How long did it take you to complete?
Sounds like they are desperate! Also I wish I hadn’t gone with my HA’s suggested lawyers, they missed stuff and I don’t know if it was on purpose 🤷🏼♀️ I reserved in Feb and moved in in June :) all took a while!
Hi great insight you have given us about shared ownership, just one question I am thinking about going for this by myself but I am thinking what happens if the girl I am dating and myself decide to live together in the future will she be able to move in or does the housing association forbids this?
So if I was able to afford to pay the full 25% upfront will I just be made to pay the rent portion? Or will I have to have the mortgage for the shared ownership to work?
I don't think you'll be allowed to do shared ownership if you can afford to pay the full 25% upfront unfortunately. But if you are, they would probably say to buy like 40-75%.
Hello, thank you for your video wich is really helpful, specially things about bills... I got a question: with shared ownership we know you can't rent out the property, but my question is: can you get lodgers that pay you rent legally??? Thank you in advance for your answer 🙏
I think that depends on your individual lease, so double check. For me, yes I could have a lodger, but I wouldn't be able to have an official rent agreement with them which means I couldn't do anything about it if they didn't pay me rent
Hey, fantastic video. Am i right in concluding you still think it was the right decision for you? I'm in a situation where i can potentially buy SO, i'm just terrified of falling into negative equity. buying in (for example) east london, when property prices are at their most seems really risky. But part of me thinks, renting a room over 5 years will be (850*12=10,200) surely my share of the property can't lose £60k. so even if falling into negative equity, you've saved in the long term?
Are you allowed a lodger in a spare room and is there is any limitation on what you can charge them. Also can you clams the government rent a room £7000 grant…
Yes you can have a lodger, you should be able ti charge what you want, but it’s not a grant, it’s just a tax free allowance ie you can earn 7k per tax year in rent a room without paying tax on it
Nice post. The thing I got from your mesaage is that if you buy to much it could make it difficult for the next peeson to buy the share, at moment the offer is to buy 25% or 100%, i was thinking with a mortgage and my own money buy 70% but now you got me thinking its not the best plan. Not sure if i could afford the 30% even after 2 or 3 year. Would be great to hear your thoughts, thank you! P.s, if 100% to buy on the table then does it matter how much i buy?
I think it does matter, because the people who will want to buy shared ownership won't buy 70%. Most people can't afford that. And you'll have to go out to shared ownership before being allowed to market at 100% so it'll delay your sale if noone is interested in the shared ownership :)
It's good to hear actual experiences, there's quite a lot of information from people who haven't actually gone through the scheme etc - great video!
Sarah Monica thanks so much :) so glad to hear that!
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Thank you. I returned to the UK after several years. Things have changed a lot & the property market has too. Your transparency on Shared Ownership is to the point, thanks again.
I’m glad it’s helped 😊
@@pandabossanna yes it has helped. I still feel that oncexI understand tge UK Market better. I can do what I was taught in the US. Property is Property, its about the right connections & I deal only in integrity. Thanks again
Very good video, I needed this info, what’s good about it is that when I’m going to get a shared owner ship I know what to look for in my contracts so the experience is positive
Love the international perspective you give seeing that I'm from America and in real estate. Always love hearing about other experiences. Thank you for sharing!
So glad you found it interesting :)
also add if unemployed its more realistic the DWP will pay around 100% of the rent compared to mortgage intrest payments or traditional rents.
Great video Anna. I too am a shared ownership owner in London and think it was the best option at the time for me. Buying outright, help to buy and renting are far too expensive in London. Fingers crossed when we come to sell, we won't have too many headaches and it would all be worth it in the equity that we have in the property to help us fund our own house outright!
Thank you :) and yeah I'm really worried about selling to be honest... seems like so many fees associated with it. I've just found out if I want to sell 100% of the property, then I have to buy 100% then sell the 100% on the same day, which means on top of the selling fees, legal fees and survey fees, I'd also have to pay stamp duty on the full price! Madness. I really regret buying now
@@pandabossanna If I understand correctly, you can sell whatever share you own without buying the full 100%. You value the whole flat/house and then your percentage is worth the percentage of that value. To get the full value of the property yes you would have to buy the whole thing. I'd talk to CAB or bring it up again because that's definitely not correct and would very much null and void the whole scheme!
I believe you have to let the housing association know you want to sell, they'll try sell it for up to 8 weeks (coming down to 4 weeks in April Changes) and then if they fail you will be able to offer your share on the free market as long as you find a buyer who fits the criteria of share. I'm looking into the scheme though as opposed to being in it so there may be some catch which unfortunately wouldn't surprise me.
Can you please explain the equity part please ?
Thank you for this! I’m nearing the end of uni and trying to figure out my options afterwards so this really helped!
You’re very welcome! Good luck 🤗🙏🏻
Thank you the video! we are currently looking into new builds with 2 bedroom and 2 bathroom flat. I hope we can afford it.
My favorite form of sharing rental properties is through buying RIETs ... super liquid and you have other people managing!
Connor Pugs oh yeah for sure, I’m doing that too :) but this is not one to rent out to others this is for me to own / live in!
This is a really clear explanation- thank you! It really sounds like something to approach with EXTREME caution and aforethought. Side note- I loved the clip of your coffee making!! 🙂
Haha thank you! I need to start doing that again in my videos, just adding more day to day life, but I have become so busy I barely have time to film the main ones! :) I'm glad you found it useful!
@@pandabossanna aw, I know what you mean x
Thanks Panda Boss - you are helping so many people understand this with this video and you explain things really well. You can tell you do your research and care about your viewers / subscribers. What you said about having pet and hanging washing out may sound like small things but I don't they are. Great that this level of detail was included. Impressed :-)
You're very welcome! I'm so glad I could help :)
This sounds like a good option for a single person, especially when you don’t want to share with other people
Wow very cool! I actually have never heard of this before. It’s cool you can get more. I’ve heard of people polling money into one property as an investment but that sounds a lot different than this. Sounds like it’s doing well!
Yeah it's a great scheme if you can live with the downsides. But fingers crossed it means I can make a decent profit from it when I sell in a few years...
So helpful thank you. Had no idea about the cons especially the utilities lockin, wow!
Glad it was helpful!
She’s brilliant, very concise and honest review.. Very informative, just what I needed thanks 👏
Super helpful video! Thanks so much for making this, I really needed to see someone break down their experience before considering it for myself :)
I’m so glad to hear it helped :)
Thank you so much for this! It really pointed my attention in same areas I have totally missed.
You're so welcome! I'm really glad to hear that :)
Hi! Why is your solicitor so expensive 4k? Local solicitor in our area is usually 1.5k. Also, why can’t you staircase? You staircase the remaining 60% share from housing association right not into your mortgage so you don’t need to pay penalty or anything am i missing something
Great video. Thanks for all the detail. Hope everything is going alright for you at the moment. And of course, keep up the good vibes.
Thank you :)
Thank you so much for this video. My partner and I are currently going through the process of purchasing a 2 bedroom house where we live in the south west, property prices in our local area are totally unaffordable for local people. We've decided after weighing up all of the pros and cons that this is the right thing for us, we've been privately renting for 19 years and have had some terrible landlords, and the monthly costs of the property we are hoping to purchase are on par with the cost of renting locally, at least this way as you said we are able to build up some equity in the SO property. I know there are many negatives to a SO property and we haven't rushed into our decision, but we feel it may be our only opportunity to get onto the housing ladder. Thank you for not only showing the negative side to SO x
Ahh I’m so so glad I’ve been able to help you in some way! Yes I agree it’s definitely not the best scheme but it’s far better than renting in my opinion :) best of luck lovely! Xx
Really helpful advice as I am in two minds - Overall would you recommend a shared ownership for short term? I’m planning on purchasing 25% for a few years maybe and then selling after? 😊
Thank you! This is so helpful, I don’t think shared ownership is the worst thing now.
Glad it was helpful! I agree, it's a great way to get onto the property ladder :)
Thanks for the very informative video! , just out of curiosity which solicitors did you use? X
Hi L&Q property you can part share meaning can part sublet but you have live in it,
Yeah when you’re living there it’s usually ok :)
Thanks for all this info. Looking at getting our first property at the moment. Really really helpful. 😊😊💕💕
It's like renting with all the headaches of buying combined. Seems only worth it if you are considered to buy it all eventually.
Thanks for the information 👍
Yep pretty much!
Honestly seems a bit worse than renting - i can change my utilities, put my washing outside, my landlord sorts any issues out that we have and I'm lucky in that the place I rent lets me have pets. The only benefits to this seem to be that you are on the housing ladder, your money is going towards the place you're staying in and you can potentially sell the place for a profit. If I were in my early 20s and single it might be more appealing, but I'm in my 30s and married and so want my freedom. For me, I'd rather hold on, save for longer and get a normal mortgage for a place where I get more freedom to do what I want and not worrying about all the stress of the housing market and how much of the property I own. Good informative video though!
Fantastic video, I'm currently in the process of shared ownership & this video has been incredibly helpful!
Ah yay! SO glad it was helpful! Good luck :)
Thank you!
For me I'm in a situation where I am not happy at home and want to be able to move out in 2 years and save for at least a £10k deposit to put down. The cost of living crisis is making it even harder for young people like me (21) to get their own place. I want to be able to live happily and if the shared ownership can help me get that quicker then I'd love to do it. My options are limited as I am unable to share with others due to my needs, hence why I'd go for this scheme.
I’m in the exact same position as you (25) I was considering staying at home longer, so that I could buy, but I don’t have that option. I’ve decided to go with shared ownership and I know the flat I’m buying will increase in value. Go for it, your happiness matters 🙏🏾
@@sss2113_ Hope it all goes well for you !! I agree not everyone has the option to stay at home, at least shared ownership gives us the option to get our own property much quicker :)
That is a thorough guide! House prices in London are crazy. You sound like you have it worked out though. Interesting you say you had a lot of regrets...I hope not too many. I love where I live, wouldn't change it for the world, the location and building/gardens are exactly what I hoped for. Keep up the good work
Thank you! :) yeah I think my main regret is that I'm now tied in, and there are things I wish I had known before diving into this (like the fact I pay for all the maintenance despite still paying rent on top of the mortgage!). So glad you love where you live, that's the most important thing. I really hope house prices don't suffer much because of the current situation, I am relying on selling this with a profit to move to my FIRE house :(
@@pandabossanna hmmm, that is tricky to be fair. Feels a bit unfair in many ways to get all downsides but have to share the upside. I hope it works out like you want 😀👍
they have changed it now the landlord payes for the service cost
As someone who is disabled and relies on Universal Credit etc i'm currently considering a cheap shared ownership flat. This is because the 'rent' component of the flat would be covered by the housing element of universal credit so it actually works out cheaper than renting privately. So I can get a brand new flat, somewhere permanent to live, and pay less than what I would have to pay when renting privately!
That sounds fab!! Fingers crossed for you :)
Amazingly detailed video which has given me lots of information to remember and questions to ask if I decide it’s right for myself and my family.
Thank you!!
Ah I’m so glad it was helpful:)
What sort of annual income do you need in order to go through a shared ownership scheme.
Hiya, you mentioned about the sort of things your solicitor should look out for when buying via shared ownership - can you throw more light on this please
Thanks Anna, I very much appreciate your video!! xx
Great ideas Anna, love your channel. Looking forward to going through the process of buying my first property this year and documenting the journey. Keep up the great work 💕😊
Hey girl! Thanks so much :) ahh good luck, it’s a long process! If you have any questions just drop me an email xx
Or not - just realised you’re in Australia! Haha...
This was so helpful and clear, really glad I watched this
So glad to hear it :)
Super useful video. Thanks for sharing your own actual experience.
One question here, will the rent be increase yearly? Thanks.
Generally yes :)
Thanks for the info, unfortunately couldn't go through the help to buy scheme because they've didn't specify job types and restrictions, anyone in the sales industry will be effected massively as they only count 50% of your commission along with 100% of your basic. This massively effects the affordability criteria and mortgage lending amount. So now am looking into the shared ownership to get on the ladder.
Glad that you found the video helpful, and I hope you find somewhere soon :)
Hi,
which coffee machine do you have? Thanks
Love your coffee machine. 😎 It is a very good deal for shared ownership to help out first time home buyers. We don't have exactly the same in US, but we have some thing called "rent to own." But yours is much better. Questions: 1. are these flats newly built? 2. Do you need to get permission to sell from the corporation if they own 60%, & you own 40%? Liked. Like #4.
Haha me too! Couldn't live without it.. Ohh, we have rent to own as well - a few of the properties here are rent to own actually as well :) For your questions - yes the overwhelming majority are all new builds, although you can get a non new build if you buy from someone who is selling after purchasing a new build. And you don't need their permission to sell. You effectively are the owner - you just have to give them 6-8 weeks to find a buyer first (but this doesn't affect the asking price - it's more to do with prioritising people in the neighbourhood who need properties over people from far away etc). :)
@@pandabossanna That's awesome! I like to live in new buildings. In fact, I only buy newly built buildings, feel clean to live in and feel good to be the 1st owner. Over here, the co-op apartments takes forever to get approval from the board to sell. Yours are better.
@@EasyWealthBuilding You do end up paying a premium for new builds though, so I guess if you are doing it more than once you are constantly losing a bit of money on that premium. But I agree - I much prefer a new house that no one has lived in before! I'm actually building my own in Poland for my financial independence / early retirement so I can't wait to document that! What are co-op apartments? Is it a similar scheme to this?
Hi I would like to discuss this option in my detail but by private email would you mind providing your email address.
Please why did you sell? Did you want to buy a different/ new property in full? Was your original plan always to just own 40% for a few years and then sell?
No :) I planned to purchase more of it but my plan changed because I decided to move country :)
@@pandabossanna thanks for your response 🙏🏽
Hi, is there a video where you talk about the ghosts in your flat? I think I have one where I live, too. X
This WAS REALLY HELPFUL thanks.
My wife and i are thinking about trying to buy into shared ownership although i would love to find a two bedroom house rather than a flat as we are and always have been in a flat.
Great advise and an insight into what we may experience
I’m so glad to hear that! :)
Great video. Thanks for sharing your experiences
This was really helpful! Would be great to know an update to see if you’ve now sold your property or your future plans
I have a video, I sold the flat :)
@@pandabossanna Soooooooo ;) much interested in that video! Can't wait to watch it. It's has not got viral yet, has it? 🤔 Big Love 💚
Its amazing video so much grate information you touch every part on topic I was interested, many thanks.
Glad it was helpful!
Very interesting video. I am currently thinking about buying a property in the next few months so this helps a lot!
Real Estate Indulgence glad to help :) thanks for watching!
Hello there mate. Did you buy shared ownership in the end?
thank youuuuu, so to confirm - can i ever let out the house in a shared ownership? can i do this without finishing the mortgage? and do i have to finish the mortgage to sell my shared ownership? note to self 24mins SUPER IMPORTANT
Wuestion: you said that paying rent and mortgage goes into your equity , well I thought that paying the rent will be in favor of Stair casing but in fact it is not , it is just paying more money if you think about it at the end the Apartment will cost a lot more than its value on the Market , please advice
Thank you. It was really helpful learning about ground rent and utility provider.
Glad to hear it :)
Great video I’m looking to buy a shared ownership house at the end of year hopefully 🙏
Good luck :)
Hello, great video. I'm looking at purchasing a shared ownership property once lockdown is over. I thought I knew all there is to know about SO, but you raised some good points about the SO mortgage deposit being higher, and being locked into utility providers. One question though, was your deposit higher because of your debt?
Isabella Maxwell yes partly, although I know a few friends who also had a higher deposit than advertised and they didn’t have much debt. I think they assess you overall just like they would with a normal mortgage, and they tend not to like 5% deposits! You may be lucky post lockdown though, interest rates are so low banks may be more willing to lend!
Who do you share the ownership with? Is it a housing association?
Can you elaborate on your situation 're getting a good lawyer/solicitor? What happened to your lease that was an error?
Hi! Yes of course. Our lease stated that ground rent could be reviewed every 5 years and wasn't capped at how much it could go up by. Although I don't pay ground rent because I don't own 100% of the property, it would essentially make it almost impossible to sell - there was literally nothing to stop them from charging £100,000 for ground rent in 5 years' time. They had to amend the lease to every 10 years and capped at a certain rate. You then need to file the new leases with the land registry and all sorts!
Thank you so much for this video! It was so insightful!
You’re very welcome :) glad it helped!
No for me.
Great video. I thank you for it. I'd to know about rent increases - how often (annually?) and by what percentage, and whether or not the housing association has a cap on how much they increase rent.
EDIT: Please could you also give details on the kinds of costs you (may) have incurred as a leaseholder as a result of repairs or improvements done by the HA, e.g, repainting doors, replacing windows, upgrading boilers, etc.
Thanks.
Thanks :) it will always vary with each scheme, so be careful. Mine increases rent by RPI on an annual basis, this is written into the lease so they won't increase it by more than RPI (of course if that jumps up, it's a big increase). Service charges are increased in line with what is actually spent. No costs incurred as of yet, but I've only been here for one year. We are due some works soon as we've just been given section 20 notices for 3 new contracts, so who knows how much it will be - they have to issue each of those if the works will cost more than £250 in a year per leaseholder.
Hi. Thanks for sharing your experience.
Very well explain.
Question:
After how many years you can sell?
Thanks
I don’t believe there is a minimum, but bear in mind there are a lot of selling costs so you’d likely lose money if you sell too quickly
Thanks for the video. Very informative and helped me make my mind up on shared property purchase.
So glad to hear that :)
4k in solicitors fees is quite high
nice video update :) you gave some great insight. awesome work.
Thank you soooo much for your amazing explanation which help me a lot. Please can you suggest which website did you use to find your flat and also how can get in touch with the broker and house association
Great breakdown! I can relate the to pet vibes 😅 desperate to get a dog aha
issastoney hahah same! I miss four legged company!!
So desperate for that
I would be very interested in this if they had it in the States, need to look into his.
Ah there are also income limits, makes sense, a very nice policy they have there.
Yeah I think it’s a great scheme that helps people get onto the ladder quicker! :) do you guys have anything similar?
Hi, great video. I wanted to ask 2 questions:
1) How soon can you staircase after buying the initial shares? If your financial situation allowed, could you do this within weeks of getting the keys?
2) Will you only be considered if you take out a mortgage for the initial share? Or can you still be considered for the shared ownership if you pay the the initial share in cash?
I'm afraid I don't know the answers to those as they didn't apply to me :( sorry! I wouldn't want to speculate
Thanks really informative and helpful advice. I'm starting to get on the housing market and exploring my options. Keep it up 😉
Thank you :)
Heya, can I ask, when you talk about hidden costs you refer to when you were reviewing your contracts as a build, that your lawyer picked up on something that other lawyers for other buyers didn'tt and it changed everyone's contract in the building, what were the things your lawyer picked up on please?
The lease stated they could change ground rent every 5 years, uncapped, which was ridiculous. We changed it to 10 years, capped
@@pandabossanna ah ok that's great, just looking at an older build myself and checked that too. Maybe it's a newer build thing. Thanks so much for responding!
Thank you so much for this lovely informative Video , Please could you confirm if subletting also includes renting a room / sharing the house with somebody is not allowed .
Yes it includes renting a room out. People still do it “on the down-low” but that’s dangerous as you aren’t allowed to have a proper contract in place so people can screw you over!
You can live with someone, you just cant have a formal contract.
Thanks a lot for this video..... very informative, great work. Hope u make more vids like this
You're welcome :)
Great video! thank you! I have a question. Can you sell the property before you finish your mortgage?
Of course :)
Lot's of useful info and interesting points, still unsure if I would go into it or not 😄😄I could buy a small flat without shared ownership but am slightly appealed by getting a house on shared ownership
I want to know how much you pay per month? The morgage and rent? Thanks very much.
I pay £500 mortgage, £500 rent and £100 service charge - so £1,100 in total plus council tax £100, and bills around £100 too.
thank you for the honesty
This is super super helpful! Thank you! I’m too looking at buying in London (why you ask! But I just love it too much). Unfortunately Help to Buy and Shared Ownership are the only way I could possibly afford it. SO also seems A lot more available in my chosen area.
My biggest drawback would be the subletting, however. I’ve only just started looking into this, but what about a second room and you are still a primary owner. Or even a partner moving in?
Glad it was helpful! :) yes you can have a partner move in, but you need to clear it with your management company AND your mortgage (this is really important - you can have your house taken away if your mortgage company is notified that you didn't disclose this! But also it protects you from the partner having any legal claim onto your property which can happen if they live there long enough and pay enough rent!). You can also have a "lodger" in a second room, but you aren't allowed to have formal rent paperwork, so you're not actually protected if they stop paying you.
Great video! Explained in a relatable way!
Glad it was helpful!
Hi! Great one thanks! What a bummer about not being able to rent out s...! I was also wondering if you as the owner are free to sell at the normal market price...? Or not!?
You have to ask the housing association - they usually get first dibs on selling on. (but within a given timeframe i.e. if they don't find a buyer within 8 weeks then you can list for whatever price you wish). Having said that, you do need to get a RICS valuation and if you are listing for shared ownership, you HAVE to sell at the RICS valuation. If you are selling full ownership then you can take another price but usually you have to take any gains/losses fully (which is good if it's a gain but obviously bad if it's a lower price). Hope that makes sense, kind of hard to explain via text!
@@pandabossanna Thank you so much!! Hope you get a great price with yours!
great video. I'm looking at shared ownership at the moment...single and just want sort of security in one place due to disability, renting private i don't think is ideal as moving around if had to wouldnt be suited.
That makes sense :) I think it can be really good you just need to be careful
Great informative video! thank you so much!
Glad it was helpful! :)
Thanks a lot for your time that you explained this.. Really appreciated!
So glad you found it useful :)
Thank you for sharing your experience, great vid and informative
Glad it was helpful!
Hi thanks for this, who was your lawyers?
So you pay into a black hole of cheap 'subsidized rent' with no landlord to cover the costs of necessary repairs andddd you pay interest on the mortgage on the part of the home you own (or bank owns) which also includes the black hole of mortgage interest rates..
surely your better off with one or the other (rent/traditional capital repayment mortgage) not both?!
How is traditional rent is not capped and you’re paying a lot more of it - more than any repairs usually
@@pandabossanna sure, but same with property prices.. so the remaining equity you want to stepladder into owning can run away from you if prices shoot up
Also of course, your not contractually obligated to pay monthly with the risk of losing everything that you’ve put money into I guess when renting
@@alanturner4943 I think most people staircase within a couple years - also if you want to buy a house, you're better off buying some of it at a lower rate. If you wait to be able to afford all of it before you buy then the prices will shoot up too... if that makes sense
@@pandabossanna yep that makes total sense, but of course we need to be careful of the narrative of constantly increasing house prices.. if too many people buy on that belief and it doesn’t happen (prices stagnate or fall) it could be an ugly situation for some don’t you think?
That ghost sound was weird man!! Do you genuinely think you have them?
Anyway we digress! Great video and explanation.. I never had to consider this as property in my area I could afford and I had the deposit!
It is helpful but the pitfalls you highlight are considerable! But it is a way to get a more expensive property than you would normally!
Keep up the super content!
Thanks so much :) and haha honestly I do! I often hear weird stuff, and when I had a cat for a week whilst pet sitting, it would follow invisible things or just intently stare at a corner of the room... terrifying!!! Yeah unfortunately in London no property is affordable haha... and when I move out it’ll be to Poland. I’m building a house there to move out and retire early :)
Panda Boss - Personal Finance & Bossing Life how strange, they say animals can see things we can’t. My dog noticed stuff I didn’t when thing happened in a place I used to stay.. and yeah fair point.. London is its own little world of property! And wow that’s amazing! Great plan you should defo do a video on that and show it off as it goes through stages!
Hi, sorry for this dumb question, but what if I have the money with me to pay atleast 25% upfront of the SO, will it be a good idea to go on with it considering I still have to pay the mortgage + rent + fees and bills? I am planning to get SO and live in it for around 3 yrs only then plans to sell it after? Would that be a better option than just renting for 3-5 yrs without actually owning anything?
Hey! If you mean 25% of the full market value then I don’t think you’ll be allowed to buy shared ownership! If you mean buy 25% share with a 10% deposit then yeah. I think if your goal is to sell 3 years later then it’s not worth buying - your buying fees and selling fees will far outweigh what the potential value increase will be.
You can't buy a property (in the future) if you have a shared ownership?
Very thorough video thank you for sharing. Quick question, how is the monthly rent you pay calculated?
It’s worked out as the market value of property in the area discounted by the amount you own & a small percentage
@@pandabossanna 🤔
Thanks
Thanks very much for great video!! What about if i live in the flat and rent one room? My friends are doing that and i was wondering - is it legal?
I think this depends on your individual lease - but usually fine as long as you get permission from the landlord and the mortgage provider, and as long as there is no “formal” rent agreement in place
Okay so this was alot more complicated than i imagined! Buying outright it is 😂
hahaha, told ya! :D
How about deadlines? I am going through the purchasing process right now. HA is offering an incentive of One year free service charge subject to me using the panel mortgage advisor, panel solicitor, exchanging contracts within 28 days of the memorandum of sale and completing within 30 days of the memorandum of sale. Taking into consideration the current situation and Xmas period this deadline seems unrealistic to me. How long did it take you to complete?
Sounds like they are desperate! Also I wish I hadn’t gone with my HA’s suggested lawyers, they missed stuff and I don’t know if it was on purpose 🤷🏼♀️ I reserved in Feb and moved in in June :) all took a while!
@@pandabossanna Thank you very much for your answer. I sent you an email. I would be grateful if you could answer
@@pandabossanna Did you pay any time fees?
Hi great insight you have given us about shared ownership, just one question I am thinking about going for this by myself but I am thinking what happens if the girl I am dating and myself decide to live together in the future will she be able to move in or does the housing association forbids this?
She can move in but you have to get permission from the housing association AND the mortgage company
Very helpful , thank you so much .
So if I was able to afford to pay the full 25% upfront will I just be made to pay the rent portion?
Or will I have to have the mortgage for the shared ownership to work?
I don't think you'll be allowed to do shared ownership if you can afford to pay the full 25% upfront unfortunately. But if you are, they would probably say to buy like 40-75%.
@@pandabossanna ok, thank you for the reply
interesting as I was thinking of SO in london! which area did you buy your flat in?
Carolina D'Agostino zone 4 :) ( I cant really say anything more specific on social media!).
Hello, thank you for your video wich is really helpful, specially things about bills...
I got a question: with shared ownership we know you can't rent out the property, but my question is: can you get lodgers that pay you rent legally???
Thank you in advance for your answer 🙏
I think that depends on your individual lease, so double check. For me, yes I could have a lodger, but I wouldn't be able to have an official rent agreement with them which means I couldn't do anything about it if they didn't pay me rent
Really insightful!!! Can you kindly share the contact for your lawyer? He/ she sounds quite impressive!
Hey, fantastic video. Am i right in concluding you still think it was the right decision for you? I'm in a situation where i can potentially buy SO, i'm just terrified of falling into negative equity. buying in (for example) east london, when property prices are at their most seems really risky. But part of me thinks, renting a room over 5 years will be (850*12=10,200) surely my share of the property can't lose £60k. so even if falling into negative equity, you've saved in the long term?
Yeah I still think it was better than fully renting :)
Are you allowed a lodger in a spare room and is there is any limitation on what you can charge them. Also can you clams the government rent a room £7000 grant…
Yes you can have a lodger, you should be able ti charge what you want, but it’s not a grant, it’s just a tax free allowance ie you can earn 7k per tax year in rent a room without paying tax on it
@@pandabossanna perfect, thank you
Nice post. The thing I got from your mesaage is that if you buy to much it could make it difficult for the next peeson to buy the share, at moment the offer is to buy 25% or 100%, i was thinking with a mortgage and my own money buy 70% but now you got me thinking its not the best plan. Not sure if i could afford the 30% even after 2 or 3 year. Would be great to hear your thoughts, thank you!
P.s, if 100% to buy on the table then does it matter how much i buy?
I think it does matter, because the people who will want to buy shared ownership won't buy 70%. Most people can't afford that. And you'll have to go out to shared ownership before being allowed to market at 100% so it'll delay your sale if noone is interested in the shared ownership :)
Thank you so much for all the information on this scheme
You’re very welcome!