Mitzyboy

I know this is probably a bit high brow for you lot, but has anyone got any knowledge of these for property purchase, i.e. are they a good thing or do you eventually get screwed over by the housing company.

My daughters flat mate has decided to do a bunk, so I have to find somewhere for her to live as she cant afford the rent on her own

rugbymatt

and if you think you are getting an easy run today after that comment think again!

valenciatim

Like most things in the housing market, all is fine unless or until the market goes mammaries vertical as happened in the early 90's. I know of people who were in these schemes, then the market crashed, and they were unable to sell unless they repaid the whole of the outstanding debt, including that of the housing association.
The small print really needs to be studied very thoroughly.
Regards
Tim

Mitzyboy

There wouldn't be an outstanding debt from our side as no mortgage involved ...... what do you mean though, paying the outstanding debt of the housing association? That would be their responsibility surely as a separate entity.

zel

I'm not sure if there are 'private' shared ownership schemes but I remember talking to a friend about it a couple of years ago as he has been on the waiting list for FOUR years and still not been offered anything suitable.

Apparently if you arn't considered a 'key worker' then you go right to the bottom of the pile and also need to earn(income) of about 25k a year and no more to be able to get on the lists, at least in London you did.

Typical UK really, the only property he got offered in that four year period was a tiny massively overpriced flat right next to Tooting Broadway station and his share would have cost him 75k!!!

OUTRAGEOUS Tell the daughter to move to Spain as I shudder to think what the country will be like in another 20 years time!

zel

Correct 'you' would only be liable for your share of the property (normally starts at 25%)

So if the property originally cost £200,000 and 25% would be £50,000 if in five years the property was worth £100,000 then your share would be worth only £25,000.

etc!

Sam Greenfield

Im suprised your up so early with all the hard work you did last night

Sam Greenfield

Morning chick - how are you???

Same Difference

You will be in trouble again for hijacking this thread

valenciatim

I know of two people who were in this situation, at the time that they wanted "out" as it were, the properties were worth less than the mortgages and the original value.
In both cases, they had to shoulder not only their own loss but that of the housing association as well before they were allowed to either sell on their share or sell it back to the housing association.
The reason this sticks in my mind so vividly is that at the time I was trying to sell a property that had been bought with my then partner, who had subsequently "done a bunk" leaving me to bear the mortgage costs. The property was worth less than the outstanding mortgage (to the tune of 50% less!), and I assumed that had there been a profit instead of a loss, it would have to be shared, the same would be true of a loss. i was clobbered for the lot, and was surprised to find it was the same with my friends in the joint ownership schemes.
Maybe things have changed now?
Regards
Tim

Sam Greenfield

No im being good today

zel

No idea mate, tho I do know there are penalties if you want/need to sell within a time frame (3 or 5 years from memory)

Maybe that was the case? Seems outrageous that one would have to pay the fall in value of the shared ownership scheme too...

I've just remembered who the person my friend used was "The Notting Hill Trust" they cover a vast area of England, not just Notting Hill

crispy

We have been looking at this scheme for our daughter as well, but decided against it in the end the main reason for this was on top of the mortgage repayment of £525 per month, for a two bedroom apartment there was an added rent of £275 per month plus £99.00 per month maintanence charge, then there was the yearly payment for ground rates another £90. Thought this was a lot to pay out every month before living costs were added, and at the end of the day she would only own between 25-35% of the property.

My daughter being under 30 years of age had managed to secure a mortgage over 35 years which meant she could borrow a greater amount, which now means she can look at something that she will own 100%.

Mitzyboy

Thanks Crispy
This is £220 a month inc maintenance & ground rent with no mortgage, option to buy after 2 years

Mitzyboy

Great, we thought we were going to get some notice .... but she has now decided she is leaving on Friday which drops us well and truly in it ...... I suspect I'm going back to the UK for a while