What are the problems with shared ownership?

What are the problems with shared ownership?

What are the disadvantages of Shared Ownership? Because Shared Ownership properties are always leasehold, ground rent may apply and you must pay this in full no matter what size share of the property you own. This is the same with service charges.

Can you decorate a shared ownership house?

Can I decorate my Shared Ownership home? You are free to decorate your Shared Ownership property as you wish, however, the housing association will not contribute to decorative improvements.

Is shared ownership a con?

Staircasing is a con So you can’t ever really fully own this property. Furthermore, every time you try to buy even a percent more, you pay solicitors fees both for yourself and the housing association. In addition to this, it’s always going to be a leasehold property.

Do you lose money on shared ownership?

Unlike full owners of leasehold properties who are unhappy with the firm running their block, shared owners cannot exercise the “right to manage” their building – it will always be run by the housing association. Another downside is that you could potentially lose your property if you fall behind on rent payments.

Who is responsible for repairs in shared ownership?

Leaseholder and shared ownership repairs As a landlord we are generally responsible for some repair and maintenance for the structure of the building, communal areas, and communal systems.

Is shared ownership better than renting?

Shared Ownership makes mortgages more accessible, even if you’re on a lower wage. Your monthly repayments can often work out cheaper than if you had an outright mortgage. The monthly payments are also generally lower than if you were to rent privately.

What is the minimum income for shared ownership?

The general eligibility criteria for Shared Ownership is as follows: You must be at least 18 years old. Outside of London your annual household income must be less than £80,000. In London, your annual household income must be less than £90,000.

Is it hard to get a shared ownership mortgage?

Unfortunately, it would be very difficult to get a shared ownership mortgage with a bad credit rating. The local housing association offering shared ownership properties may also not accept your application. There are specific bad credit mortgages, but most don’t lend on shared ownership properties.

What are the rules on shared ownership?

General Shared Ownership eligibility criteria You must be aged 18 or older. Your annual household income if buying outside of London must be less than £80,000. Your annual household income if buying in London must be less than £90,000. You will normally be a first time buyer or be in the process of selling your home.

How much rent do you pay on a shared ownership?

Rent. Rent on a Shared Ownership home is usually set at around 3% of the unsold equity, however, the exact figures will be sent to you with the viewing details.

Can I buy a shared ownership without a mortgage?

You must show you are not in mortgage or rent arrears. You must be able to demonstrate that you have a good credit history (no bad debts or County Court Judgements) and can afford the regular payments and costs involved in buying a home.

How long does it take to buy a shared ownership house?

How long does it take to complete a shared ownership purchase? On a new build the exchange of contracts takes place within 28 days or less, however completion could be months ahead from that.

How hard is it to get a shared ownership mortgage?

How much deposit do I need to buy a shared ownership property?

5% deposit

Are you allowed pets in shared ownership?

Keeping pets In most cases you will need written permission to keep a pet such as a dog or a cat. This permission can be withdrawn at any time if your pet causes any nuisance to your neighbours. No permission will be given for any pets that are considered dangerous.

What happens to my shared ownership property when I die?

Succession rights to a shared ownership home If a person with a shared ownership lease dies, the part of the property that is owned passes to the beneficiary of the will. The rented part passes to any successor.

What happens to shared ownership when you die?

When a property is owned as Joint Tenants, all owners own 100% of the property. So when one co-owner dies the equity automatically belongs to the surviving co-owner, along with the legal title. The deceased’s name is removed from the title.

Can you negotiate the price of a shared ownership property?

6. Property prices are (in theory) at market value, you just have the option to buy a part of the property which tends to be between 25% and 100%. If you buy off plan and the market drops, you can’t re-negotiate the price; you’ll still need to pay the higher amount.

What happens if I want to sell my shared ownership house?

You will increase your share to 100% and sell your home on the same day and you will not have to borrow extra money to pay for the remaining share. On completion of the sale you will receive your share and your housing provider will receive its percentage share of the current full market value.