Hi, thank you for the video and information. My question: Is shared ownership better than help to buy scheme since it helps to give you 20% interest-free for 5 years. FYI: I am considering a new 3-bed build property to buy (£170k) with its maximum (75%) ownership. However, on the other side, I have little better features (area, toilets) achievable from £195,k. I can go for either of them but help to buy would allow me to be rent-free or interest-free for 5 years. I would be thankful if you could advise on this matter. Cheers!
Im Canadian living in the UK for 10yrs now looking to get on the ladder with my partner. She brought this option up and this video makes me understand what this scheme is all about. Thank you so much!
Brilliant video I am currently studying my CeMap at the moment so this is helpful for revision purposes! These are some other disadvantages that came to mind: • the property can be harder to sell the later down the line • stair casing can be costly and can involve payment legal fees and other costs each time • a lot of housing associations only allow you to buy them out 10% at a time when staircasing!
Thanks Ella! Some really great points there you make and great you are studying CeMAP. Thankfully the government will be reforming the model and making changes such as being able to purchase shares in 1% increments, which will be great for first time buyers! Government link here with more info - www.gov.uk/government/news/changes-to-shared-ownership-to-help-more-people-get-on-the-property-ladder#:~:text=The%20government%20will%20review%20a,to%20buy%20in%201%25%20increments.&text=People%20use%20shared%20ownership%20to,subsidised%20rent%20on%20the%20rest.
You are so kind and nice to people here. I can't afford to buy yet, but I will subscribe because I am impressed with how sweet you are with random people trying to get some free advice 😅
Ground rent is usually payable when you own 100% of the property unless stated by the Housing Association of their properties. Shared ownership is a massive help for first time buyers getting onto the property ladder for the first time
Thank you so much for this video. Today I started to look at shared ownserhip again & found my ideal property in my ideal location, so I made an enquiry but I know there's so much more involved. So, I will watch this again & take notes & download the attached. Thank you Alex!
Hello dear, how are you doing today. I like to be your friend if you don't mind. Please do not be mad at me ok. I was checking your profile picture so I see you and like you
*YOU Sir.....are one of THREE most helpful. I love how you "speak/explain" in plain simplified English & not housing jargon lol* *I do have many questions though.....*
I dont understand one thing and I will try to explain it. I was looking for home but where I live its too expensive and I can't afford it so let's say properties are 200k and I can get only 100k mortgage. Lady in the bank said to me that I can go through shared ownership but here is what I dont get it.. 200k mortgage for example would be 1k every month to pay which I can easily afford, but bank can give me only 100k because of me earnings. Shared ownership - OK u get 100k mortgage which will be 50% value of house but rest I need to pay rent so it will come 1k per month anyway!! So why they can't give me that 200k mortgage. I will pay the same money every month anyway. Weird
Hi Cheryl, thanks for watching the video. Do you normally find that the combined mortgage and rent payment will be cheaper then when compared to the full price of the property if you had a full mortgage. I hope this helps, Alex
I’ve always wondered this! I actually bought 50% and am in the process of buying the other 50% share in the coming weeks. Give or take, my monthly costs remain pretty much the same. On SO my mortgage was a higher interest rate than a normal full mortgage, hence making the cost pretty much the same. Why I couldn’t get the full mortgage in the first place with access to the most competitive rates, just makes no sense to me.
Just a correction. We purchased a property on the OPEN market. But the Housing Ass had to vet the property. 1 condition was it had to be newish...Second I stair-cased from 50%-100% with no fees......yep no fees. It was a promotion. Maybe they wanted to reduce their commitment.
Thanks for Sharing, very informative! I have a question regarding stair-casing, why do you need to buy more shares when the rent/mortgage ought to go towards the ownership?
Hi Oselzore, thank you for your question. With shared ownership you part own the property. Your payments go towards reducing your mortgage balance and the percentage you do not own, you rent that part of the property from the housing association. So for example if you owned 50%, you would pay a rent for the remaining percentage. So shared ownership is seen as better than renting, as with renting you own 0%. Does that make it clearer ? Alex
Thanks for sharing this. Never would have thought to ask some of these questions. I'm living in Scotland and looking to buy a property with the help of the Scottish government First Home Fund scheme, my main reason is that it reduces the monthly outgoings and so with savings built over time i can buy out the share owned by the government. I haven't read much things on the scheme that would ring any alarm bells but am hoping to get something in a decent school district.
Great video Alex, thankyou for clarifying as reading through pages and pages of info is mind boggling. You're very approachable and easy to listen to, thank you, I have subscribed!!!👍👍
Say we get a house for the 50% shared ownership. When we go to sell a few years later if we haven't staircased, would the 50% be taken from the sale price or the original amount of the house price, Really hope that makes sense aha
My local area is undergoing a regeneration project and is expecting 100s of homes in the coming years. I saw shared ownership was going to be an option but had a misunderstanding of what it meant. Your video was so helpful - I feel more confident now.
So if you want to staircase from 50% ownership to 60% for example, is a new mortgage needed, the current mortgage extended in terms of years, or the monthly payment adjusted?
Hi Tony, the best time to get more shares would be the point your current mortgage deal expires or if the lender you are with allows you to do a further advance to buy extra shares... We always try and recommend lenders that work this way.
Hi there. Thank you very much for this video is very informative. Couple of questions if you have the time to answer: 1. Who is responsible for maintenance in the flat? For both appliances and the flat itself (e.g. flooring, windows, electrics etc). 2. Is it possible for the housing association to decide to sell the flat and kick you out? 3. I've had a look online and I've seen quite a few people saying that it is difficult to sell if you want to move up the ladder and can lose money. Thank you
Hi Dimitris! 1) the housing association would cover the buildings insurance and you would be responsible for the contents. 2) unlikely they would do that unless you broke any terms. You would know the terms before going into the purchase as the housing association would supply them. 3) lots of factors come into account that effect saleability! Location, demand, the property itself and all sorts of stuff like that but being a shared ownership property would unlikely be the sole reason it doesn’t sell... I hope this helps ? Alex
@@alexkerrmortgage thanks Alex. So from what I understand you need to look at the terms for each property individually? Is this where we will find if a cat is allowed in the property? My partner and I are very interested in shared ownership. Living in London and with our current salaries/deposit there is no chance we can buy normally. And paying rent really feels like throwing money away especially now that we are getting older... Any housing associations out there that you know have a good reputation? Cheers
*THANK YOU SO SO MUCH for you videos.....absolutely appreciate you!* I DO apologise in advance if my questions are longwinded & somewhat....daft!! 😜 May I ask kindly: 1. Is Shared Ownership therefore isolated to SOLELY new builds? 2. Or does it extend to "second hand" homes too (implications if so)? 3. Does the fact that we'd be First Time Buyers in our 40s & 50s go against us in any way? 4. I see you've provided an email address in one of your threads...is this for free impartial advice from you directly? 5. What exactly is Stamp Duty & is it applicable on Shared Ownership? 6. Is Shared Ownership the same as Shared Equity? I'm so sorry for the 109 questions lol.....just needing to be *absolutely* sure & educated on this..... as this is a MASSIVE investment.
Is Shared Ownership therefore isolated to SOLELY new builds? No, this is any shared ownership property, both new build and second hand properties available. 2. Or does it extend to "second hand" homes too (implications if so)? Yes. Implications... Same rules apply as new builds. 3. Does the fact that we'd be First Time Buyers in our 40s & 50s go against us in any way? Only the maximum length of term you can have (Until age 69 max or 74 if you have a private pension) 4. I see you've provided an email address in one of your threads...is this for free impartial advice from you directly? Yes - alex@mortgagechain.co.uk 5. What exactly is Stamp Duty & is it applicable on Shared Ownership? This is a government tax you pay for buying a home. It only applies to the share you buy and if that share is under 300k (or 500k until March 2021) you have zero stamp duty to pay as a first time buyer. Here is our stamp duty calculator for reference: mortgagechain.co.uk/stamp-duty-calculator/ 6. Is Shared Ownership the same as Shared Equity? No, shared equity is more a reference to the help to buy equity loan. I'm so sorry for the 109 questions lol.....just needing to be absolutely sure & educated on this..... as this is a MASSIVE investment. No problem! I hope this answers your questions, any more let me know! :-) Alex
No worries and thanks for your message Poe Gerard! We have also released a more recent video which in the notes includes a link to the new government changes coming into effect which will make shared ownership much better! Video here - ua-cam.com/video/_qCR6gFJFX4/v-deo.html
Hey, thank you for the video. What happens when you come to sell? Do you just advertise your share to other potential buyers as normal on for instance Rightmove? And is it harder to find buyers because of this? Thanks!
Hi Mike, selling is very similar to a normal property sale and yes it would go on all the portals. The housing Association may help or they may have estate agents associated with them! Double check with your housing association. Alex
Hi Alex, Great video!! We bought a 50% shared ownership flat and planning to buy another property for investment to rent out. Is it possible to buy an investment property if we bought our first with help to buy and shared ownership? Many thanks for your answer.
Olivér Nagy hi Oliver, yes that is fine! Not an issue at all. I actually have it on the list to do a video for a first time landlord. The deposits are a bit bigger. Are you aware of that ? Alex
alexkerrmortgage Thank you so much for your answer Alex! Really appreciate it. Also I didn’t know about the higher deposit so thank you for that as well!
Great content but do have one criticism, 6:50 you talk about how much the service charge is, but then you just go on to say that there is a service charge... I respect that it may be different for different areas but a ball park figure would have been better than none in my opinion.
Hi John, thanks for watching and the feedback. Let me see if I can add something to the notes below to make that clearer. I am planning on doing a new one in Jan 21, so will be sure to make that area clearer. Thanks for the feedback and take care 🙏 Alex
Hi and thank you for your useful videos. I'm thinking about doing shared ownership , but wanted to know is there a way of roughly calculating how much my mortgage, rent and service charge will be?
Hi, Alex thank you for this helpful video. I would like to know about the lease condition. What minimum remaining years we should looking to before buy the property? Kindly please reply.
We've gone with help to buy instead of shared ownership. I know not everyone can do it. My friend does SO, owns 40%. Her interest rate on her mortgage is 4.5% and she's only paid £780 off her mortgage in 3 years. Our mortgage with HTB is 1.7%. I didn't know SO mortgage rates were so much higher!
Just a quick question when I finish paying off my 25% worth on the property do I still have to keep paying rent or do I stop op up or do I have a choice to keep pain so I can pay off the house and have it as 100% of my own.
Hey! Thank you for the video, really useful. My partner and I are looking to buy a house in about 4 years time, at the moment it only seems like we can go shared ownership. We have been looking round and seeing what the prices are now and it works out to be around £700 each, inc. bills, rent and mortgage. We would like to staircase too. We have found an area good for us both, would you recommend we go shared ownership starting at 50%, or rent? Renting seems so expensive for what you get, thanks.
Glad it was helpful! I always say that shared ownership is better than renting.... as owning 50% is better than owning 0% when you rent! You have a mortgage and should be creating some equity for yourselves so you can buy outright later on. Good luck! Anymore questions let me know. Alex
Hi Alex, Im considering a shared ownership mortgage. I am committing myself to work in an area for around 2 years minimum probably closer to 3. The reason i am considering shared ownership even though i can afford a full mortgage and deposit is that I do not want to commit to buying a full at this moment in time and would prefer as much flexibility as possible regarding my future career. I do not know which path to start on can you provide any advice? Thanks
Hi Tom, that sounds like a sensible plan! There is quite a lot to it. We offer a free analysis call to go through this as part of our service. If this is of interest please call my team and ask for an analysis call on 03333446869 - Look forward to helping if thats something you are interested in. Alex
You at the moment, but shared ownership is being reformed and will soon be the housing association. It will be under the affordable homes scheme, I have not heard on a release date as yet but will do a video when it is active
Thanks Ever so much Alex. A question if I may: when you purchase extra shares, do you go through the whole process again? I.e. are there additional cost involved?
Humera Faisal hi Humera, you can sell your property of course, but housing association rules can vary, so it’s best to check with them the terms at the start... but you can sell the property of course, you are not tied in for ever!
Dan S you certainly can! You can use it on any purchase and still obtain the bonus. Where are you in your stage, have you started a property search as yet ?
Worst thing we ever done buying a shared ownership flat. When we first moved in the rent and service charge was very affordable. Within 2 years the rent and service charge went up by £200 pcm. And whenever you call up the property management they just say the money will go up by minimum of 1% every year. I'm estimating within the next 5 years this property will be deemed unaffordable for us. Just be aware it starts off great but inevitably your bills will sky rocket
I was wondering I have bad credit but I was woundering if I pay 35k upfront that’s the 25 per cent . Will I have to pass credit checks still to rent can I pay 35k upfront and not have a mortgage
Great video. Are you still locked into the housing association rules and ground rents if or when you own the property outright? Or does this change from association to association?
Good question! It all depends on the housing association. Some will allow you to own the freehold and others will not. However once at 100% ownership there is no rent to pay...
Hi Alex, I'm interested in a shared ownership in Essex. Linden housing homes said. That I can only do mortgage though the company, they recommend. Thinking because they would charge a higher rate. Is this correct?. Thanks.
Hi Stevo, it is not a requirement to use there brokers! Hopefully they will not charge higher fees but feel free to get in touch if you want some options... Where is Essex are you ? I am Chelmsford.
Thank you for this video! One question please, so if you go for a property of 25%, you're paying the mortgage but also rent. Does the rent go towards the remaining 75% of the property? Or is the rent going nowhere? This is the part that confuses me as I'd like to know whether it goes towards the total payment of the property or whether it's just for residing there while making payments. Thank you very much!
Your renting at a discounted price because you own part of the property. The rent is not paying off the 75% because someone else owns that your just paying them to live there.
The mortgage payment will reduce the balance on the share your own, the remaining share you pay your rent to the housing association, so the housing association benefit from this element. I hope this makes sense, any more questions please let me know.
Thank you for watching. Shared ownership is good in my opinion, if you have no other options. It is great for getting a foot onto the property ladder. When you say push the mortgage, what did you mean by that ? Thank you!
I mean 45% shared ownership it means I’m not entitled to buy the 100% of the property? . Forever I will rented the place even I already paid off the 45% of the property?
Hi alex it’s very informative , is it possible if we can buy shared ownership with maximum deposit so we have less morgage , and also whats the difference to get mortgage direct from bank and to involve broker .
Hi Saqib, yes it is... a broker will likely provide you with the best lender for you first time, and do all the work for you, where doing it alone would mean doing your own research and understanding the criteria correctly!
How easy is to sale your ownership of the property? Does the house association buys it or does it have to go on the open market? I heard of many people getting stuck in it not been able to sale.
Nice one thanks! I am wondering whether 1. they will let me rent out a shared ownership new build flat if I wanted to and 2. whether the new owner can sell it freely on at the normal market price...? Would love to know! I will ask them though.
Hi Alex Sonko, I would say shared ownership is the middle ground between buying and renting or you could say purchasing a 50% share is the middle ground of shared ownership 👍🏻
alexkerrmortgage thanks pal, I’m in a position where ive recently started a gas engineering company I earn good money but as it’s new I won’t be able to prove heavy income on the books me and mrs have abit of deposit money and desperate to jump on the ladder she has average paying job which we should be able to get a shared ownership mortgage for an ok % would you recommend to hop on shared ownership, new build nice location where house price is likely to rise or would you encourage to hang on to buy without the gov schemes? Thabks
Alex Sonko I think anything that helps you onto the ladder is a positive step. I would say get your first year in business done. Is it Limited Company it sole trader ? Then let’s have a chat see what your options are. Just save save save until then! What date did you start trading ?
Thanks for your videos! Can you suggest some good house associations in London? another question is the does the rent increases and the market value of the property increases?
Hi Marcelo, the rent should decrease as you buy further shares. I cant really recommend housing associations, just look for the online trust pilot and google reviews and that will give you a good idea!
Hello! Great video thank you so much. If you’re considering not staying in your shared ownership for too long (maybe no more than 5 years) would you say it’s beneficial to *not* staircase as it may be harder to sell say 75% share compared to 25% (with the idea in mind that shared ownership is supposed to be aimed at first time buyers with low deposit etc.) What’s your thoughts on this? Thank you
I would say it’s a good point! But in my experience shared ownership properties seem to sell well and if you’re at 75% then you’re close to 100% so you may as well keep going!
I’m looking to buy my first property. Given current situation ...I think I am on hold now. My annual income is low and I am single, which is not helping me either. My Question: which % is the best to start? I am aiming for 50% minimum... and also, is it possible to buy out the property entirely after xxx years? Thanks, good video.
You can "staircase" which means buying more equity. In regards to a share you can buy, you would need an affordability check. Maybe use a lenders affordability calculator to give you an idea.
I have a question, my husband is technically a property owner, he and his siblings received a house as an inheritance, my husband was the mortgage "owner" the house has now neen sold and we currently rent (we never loved in the house) does this disqualify my husband and I from shared ownership? I am unemployed, my husband works full time.
I’m pretty sure you should still be fine with shared ownership… Feel free to book in a free chat if you want to look into the options. Here is the link. link.coursecreator360.com/widget/appointment/mortgage-chain
Thanks for the analysis! 🔍 I have a quick question: 🤷♂️ I have these words 🤨. (behave today finger ski upon boy assault summer exhaust beauty stereo over). Can someone explain what this is? 😅
Does getting a shared ownership affect how much you can borrow for mortgage. Me and my partner notice as soon as we say it's shared ownerships the amount ee can borrow go's.down anyway. Doesn't this defeat the point of this . ???
The amount goes down because you need income to cover the rent as well. I would focus on the full purchase price and not the mortgage amount as the purchase price will go up compared to buying outright.
Hi....is it true that all shared properties are leasehold? Thanks for the vid but I would never touch a shared ownership, there are many more cons than you have listed. Its a win win for the HA
Abba Roonie hi Abba. Yes that is right, you pay a rent on the share you do not own, the Housing Association are the freeholder. The reason for making clear the disadvantages is purely as a “approach with caution” message as some housing association rules will be more favourable than other’s so be sure to check. But I am of the opinion that shared ownership can be fantastic if used as a stepping stone if you find a good Housing Association who have fair terms. It’s not a good idea as a long term plan, which is the main reason the downsides are highlighted. I hope that helps.
If you buy a new flat and live there for 10 years. You still may have 90 years on the lease maybe........no big worry in my view. Oohhh and I had no lease on my 3 bedroom home.
Unfortunately you can't use the help to buy equity loan for shared ownership properties, however with just a 5% deposit required of the share you are purchasing, this means the deposit is 1/4 of what you otherwise would need to put down, making it much more achievable.
Can you please explain how much you will pay on the mortgage if you put down 5%- 25% of deposit. Cause you talked about the rent, what about the repaying the mortgage
Hi Mizz, all depends on your credit history and the lender and rate.. there is no one answer that fits all for this, unlike the shared ownership rent... You would need an analysis call for this! Are you thinking of shared ownership ?
My Shared Ownership house is currently at 75 years lease, but my Surveyor has just valued the property without knowing the lease is below the threshold of 85 years. Would this affect the value of the property as I am Staircasing from 50% to 100% which makes the property automatically a freehold and no lease extension needed?
It would mean a shorter mortgage term so that would need to be affordable. Email me your incomes and outgoings and I will take a look. alex@mortgagechain.co.uk - Thank you for watching!
Hi there. I was looking at shared ownership, but then from others who i know who have shared ownership and from research -if the housing ownership decide they want to do some repairs, especially when living in a flat, the tenants/home owners are slapped with a hefty bill that they have to pay. For example, one person I know got billed 10K as the housing association wanted to redo the windows of the property. This is soooooo off putting. What happens in these cases? Can I decline? Can the service charge not cover this? How can this be avoided? I hope to hear from you soon 😊
If you have a leasehold property, then you have no choice, but to pay. New Builds could potentially avoid this problem for a long time or doing some research in to the condition of the property or asking when the last repairs were carried out. Nothing you can guarantee to stop this happening unfortunately.
It means you own your own property as opposed to renting, you can do what you like to your own property and one day you could leave something for your children.
@@alexkerrmortgage Yes but. when we think about the interest we are paying for the mortgage, is it really worth buying a 300k house for 500k (with interest) + house maintenance+ ground rent + service charge(if applicable) when comparing to renting a property and investing the rest of the money in the market?
Depends on the area and build all the resales I looked at were gonna pretty quick .. I think it’s a general problem with new builds my brother couldn’t sell his as fast not share to buy, but so many news one were being built at the same price
Thanks for the video. I wondered about the home improvements, since you don’t technically own the ground as a leaseholder, are you allowed to change floor finishes from carpet to something else for instance ?
I've had read over the scheme and you a limited on what you can change. Belive rules will differ from one housing association but general rule is you can change flooring and you can paint and decorte. But you can't knock down and build walls or build an extension on the back
Naomi and Jack thanks for your comments. A lot of people share this opinion, especially on a long term basis. However there are plenty of good housing associations and the biggest positive for shared ownership is that it can help people on to the property ladder where otherwise they would not have had a choice. Always make sure you can buy a bigger share later on is my biggest tip. This is called “stair casing” 👍🏻
@@alexkerrmortgage hi. Why would it be a bad idea for longer period to own shared ownership property ? Maybe for some people it's enough to own 25% of the property, pay off the mortgage and just pay the rent and the charges like 300 pounds a month . This way it's still much cheaper than to rent a property where you pay more and you don't even own anything from that house. Thanks in advance for your answer :)
@@ggggg895hungary Hi G! Only if you do not purchase more shares later is it not as effective as it could be. However with the governments reform of shared ownership, you will be able to buy shares in 1% increments, rather than a minimum of 10%, which in most cases in the minimum you can purchase, meaning some people can't afford that, and never purchase further shares. However with this new reform mean's longer term will now be a better option as purchasing an extra share will be much easier. Does that make sense ?! Alex
How much are the fees involved with a shared ownership on average? I'm waiting for properties to be released and I have the deposit ready to go. I just want to have an idea on fees so Im not cut short by that. Also when do you pay all of your fees. Up front or at the end of the sale when deposit is moved and you're moving in. Completion is looking at autumn this year to spring next year so another 6 months of saving would be ideal for myself however I'm not sure is payment would switch hands a long time before this
very informative. just missed the fact that if you need/want to sell your share, that you cannot negotiate what you sell your share for. the leaseholder can state that you can only sell your share for X or more, and if you get an offer for £1000 less than X, you cant accept it.
The thing i don't understand about shared ownership is that if i were to buy a cheap small flat the mortgage repayments could be around £320 a month. But with shared ownership the same size flat is heading for over £600 with mortgage, rent, service charges etc. So how is this helping with regards to affordability or helping people to buy homes?
Hi Gemma, can you provide the links to the two properties you are referring to? I'm not sure of a situation like this, unless the properties are in completely different locations? Keen to help you figure this one out!
I don't know if it's just me or not. I am trying to open the "download the checklist shared ownership file" from underneath the video. The redirect doesn't seem to work and it just says UA-cam.com redirect. Can you provide the link to the shared ownership file that you talk about in this video? Thank you
I will get this checked out… In the meantime if you download the first time buyer pack, the shared ownership document is included within this pack! Here is the link - www.mortgagechain.co.uk/first-time-buyer-tips/
Hi I’m wanting to purchase a property on my own, I only earn 21500 a year, so shared ownership will be the avenue I have to take, can I put a larger deposit down ? Say 20k instead of 10k?
Hi Zoe, thanks for watching! The more you put down, the better the rate potentially and more lenders you may be open to. Have you got an idea on the full purchase price of a property you would be interested in ?
alexkerrmortgage for a small 2 bed house in my area I’m looking at around 260k + 😞so want to save as much as possible to give myself the best possible opportunity!
Damon Wayans no one likes a negative nancy, theres avenues I can take to become a home owner and I will be owning a home within the next year, so thanks for wishing me luck, but il get there and I have no doubt in myself.
Zoe Billingham feel free to book a free analysis call with me so we can work out borrowing potential. Shared Ownership works differently and let’s see what your options are. Book a free chat here! (Choose analysis call) - outlook.office365.com/owa/calendar/MortgageChainLtd@mortgagechain.co.uk/bookings/
⚡QUESTION OF THE DAY: Are you considering a shared ownership mortgage ? Let me know! 👇👇👇
Hi, thank you for the video and information. My question: Is shared ownership better than help to buy scheme since it helps to give you 20% interest-free for 5 years. FYI: I am considering a new 3-bed build property to buy (£170k) with its maximum (75%) ownership. However, on the other side, I have little better features (area, toilets) achievable from £195,k. I can go for either of them but help to buy would allow me to be rent-free or interest-free for 5 years. I would be thankful if you could advise on this matter. Cheers!
Yes I am
LAMAS TOLU excellent! Have you found a property or at early stages ?
Early stage
Im looking for property outside london (like 45min drive to London)
LAMAS TOLU this is a good place to start www.sharetobuy.com/
Was the only way me and my wife could get on the ladder and I’m so pleased we did. We now own 100% of our property
Im Canadian living in the UK for 10yrs now looking to get on the ladder with my partner. She brought this option up and this video makes me understand what this scheme is all about. Thank you so much!
go back there is nothing in this country but rain and its snows over there (this is meant with good intentions )
I know this sounds cliche but thank you for giving me this advice. Given the impact it can have, it is not a light topic. Thank you
I second that I'm 21 years old moving out and I feel so lost on these subjects
@@elecrticgamer I third that
@@elecrticgamer To be 21/22 and thinking of this is just fantastic tho. Keep it up!
Brilliant video I am currently studying my CeMap at the moment so this is helpful for revision purposes! These are some other disadvantages that came to mind:
• the property can be harder to sell the later down the line
• stair casing can be costly and can involve payment legal fees and other costs each time
• a lot of housing associations only allow you to buy them out 10% at a time when staircasing!
Thanks Ella! Some really great points there you make and great you are studying CeMAP. Thankfully the government will be reforming the model and making changes such as being able to purchase shares in 1% increments, which will be great for first time buyers!
Government link here with more info - www.gov.uk/government/news/changes-to-shared-ownership-to-help-more-people-get-on-the-property-ladder#:~:text=The%20government%20will%20review%20a,to%20buy%20in%201%25%20increments.&text=People%20use%20shared%20ownership%20to,subsidised%20rent%20on%20the%20rest.
You are so kind and nice to people here. I can't afford to buy yet, but I will subscribe because I am impressed with how sweet you are with random people trying to get some free advice 😅
Thank you so much! I'm glad you are getting value, and thanks so much for your kind words it really is very nice of you and means a lot!
The information you provide is by far the clearest and most straight forward I have found on UA-cam - keep it up!
Thank you, plenty more videos on the channel for you and thanks for watching!
Ground rent is usually payable when you own 100% of the property unless stated by the Housing Association of their properties. Shared ownership is a massive help for first time buyers getting onto the property ladder for the first time
Thanks for sharing that with us, appreciate you watching and the comment!
@@alexkerrmortgage just like to share my experience and knowledge and help😊🙌
Thank you so much for this video. Today I started to look at shared ownserhip again & found my ideal property in my ideal location, so I made an enquiry but I know there's so much more involved. So, I will watch this again & take notes & download the attached. Thank you Alex!
Thanks very much! Good luck, if you are going it alone! We are here if you need us, just get in touch. Good luck what ever direction you decide!
Hi, have you managed to into the shared ownership? Please share your experience
I like the calm way you explain everything! Thank you!!
Anisa Trs Thank you!
Hello dear, how are you doing today. I like to be your friend if you don't mind. Please do not be mad at me ok. I was checking your profile picture so I see you and like you
Seriously thank you. Made it more clear in my head about shared ownership
*YOU Sir.....are one of THREE most helpful. I love how you "speak/explain" in plain simplified English & not housing jargon lol*
*I do have many questions though.....*
Thank you for your kind words! And fire away with your questions ?!
Thank you Alex for helping first-time buyers. It makes a bit more sense now
Anytime. Any questions let me know. Alex
Another massive thing to consider are premiums which can take you overall upfront costs so much higher
Thanks Simon.
Thanks for posting about such important topic. Five years later, is there any relevant change we should be aware of?
Thanks! Here is a more modern one which is still relevant - ua-cam.com/video/IqPW7rOdtNI/v-deo.htmlsi=R65lUi-Bkw5RrjBA
I dont understand one thing and I will try to explain it. I was looking for home but where I live its too expensive and I can't afford it so let's say properties are 200k and I can get only 100k mortgage. Lady in the bank said to me that I can go through shared ownership but here is what I dont get it.. 200k mortgage for example would be 1k every month to pay which I can easily afford, but bank can give me only 100k because of me earnings. Shared ownership - OK u get 100k mortgage which will be 50% value of house but rest I need to pay rent so it will come 1k per month anyway!! So why they can't give me that 200k mortgage. I will pay the same money every month anyway. Weird
Hi Cheryl, thanks for watching the video. Do you normally find that the combined mortgage and rent payment will be cheaper then when compared to the full price of the property if you had a full mortgage. I hope this helps, Alex
I’ve always wondered this! I actually bought 50% and am in the process of buying the other 50% share in the coming weeks.
Give or take, my monthly costs remain pretty much the same.
On SO my mortgage was a higher interest rate than a normal full mortgage, hence making the cost pretty much the same.
Why I couldn’t get the full mortgage in the first place with access to the most competitive rates, just makes no sense to me.
Presumably it’s to do with the amount of risk the lenders assume by lending £100k vs. the full £200k.
Great information. Thanks Alex !
Just a correction. We purchased a property on the OPEN market. But the Housing Ass had to vet the property. 1 condition was it had to be newish...Second I stair-cased from 50%-100% with no fees......yep no fees. It was a promotion. Maybe they wanted to reduce their commitment.
Thanks for Sharing, very informative! I have a question regarding stair-casing, why do you need to buy more shares when the rent/mortgage ought to go towards the ownership?
Hi Oselzore, thank you for your question. With shared ownership you part own the property. Your payments go towards reducing your mortgage balance and the percentage you do not own, you rent that part of the property from the housing association. So for example if you owned 50%, you would pay a rent for the remaining percentage. So shared ownership is seen as better than renting, as with renting you own 0%. Does that make it clearer ? Alex
Thanks for sharing this. Never would have thought to ask some of these questions.
I'm living in Scotland and looking to buy a property with the help of the Scottish government First Home Fund scheme, my main reason is that it reduces the monthly outgoings and so with savings built over time i can buy out the share owned by the government. I haven't read much things on the scheme that would ring any alarm bells but am hoping to get something in a decent school district.
Subscribed! Thank you so much!
thank you for watching!
Great video Alex, thankyou for clarifying as reading through pages and pages of info is mind boggling. You're very approachable and easy to listen to, thank you, I have subscribed!!!👍👍
My pleasure! I appreciate that, thank you!
Thanks for the information given it sounds better for shared ownership
Thank you for watching! I will have an updated version out soon, as a few things have changed.
Man thanks for your content 👍
Awesome video Alex. Very handy!
Say we get a house for the 50% shared ownership. When we go to sell a few years later if we haven't staircased, would the 50% be taken from the sale price or the original amount of the house price, Really hope that makes sense aha
Any increase in value will be 50% yours!
I've found this very informative, thank you very much.
My local area is undergoing a regeneration project and is expecting 100s of homes in the coming years. I saw shared ownership was going to be an option but had a misunderstanding of what it meant. Your video was so helpful - I feel more confident now.
That is awesome!
So if you want to staircase from 50% ownership to 60% for example, is a new mortgage needed, the current mortgage extended in terms of years, or the monthly payment adjusted?
Hi Tony, the best time to get more shares would be the point your current mortgage deal expires or if the lender you are with allows you to do a further advance to buy extra shares... We always try and recommend lenders that work this way.
Hi there. Thank you very much for this video is very informative.
Couple of questions if you have the time to answer:
1. Who is responsible for maintenance in the flat? For both appliances and the flat itself (e.g. flooring, windows, electrics etc).
2. Is it possible for the housing association to decide to sell the flat and kick you out?
3. I've had a look online and I've seen quite a few people saying that it is difficult to sell if you want to move up the ladder and can lose money.
Thank you
Hi Dimitris! 1) the housing association would cover the buildings insurance and you would be responsible for the contents. 2) unlikely they would do that unless you broke any terms. You would know the terms before going into the purchase as the housing association would supply them. 3) lots of factors come into account that effect saleability! Location, demand, the property itself and all sorts of stuff like that but being a shared ownership property would unlikely be the sole reason it doesn’t sell... I hope this helps ? Alex
@@alexkerrmortgage thanks Alex. So from what I understand you need to look at the terms for each property individually? Is this where we will find if a cat is allowed in the property?
My partner and I are very interested in shared ownership. Living in London and with our current salaries/deposit there is no chance we can buy normally.
And paying rent really feels like throwing money away especially now that we are getting older...
Any housing associations out there that you know have a good reputation?
Cheers
*THANK YOU SO SO MUCH for you videos.....absolutely appreciate you!*
I DO apologise in advance if my questions are longwinded & somewhat....daft!! 😜
May I ask kindly:
1. Is Shared Ownership therefore isolated to SOLELY new builds?
2. Or does it extend to "second hand" homes too (implications if so)?
3. Does the fact that we'd be First Time Buyers in our 40s & 50s go against us in any way?
4. I see you've provided an email address in one of your threads...is this for free impartial advice from you directly?
5. What exactly is Stamp Duty & is it applicable on Shared Ownership?
6. Is Shared Ownership the same as Shared Equity?
I'm so sorry for the 109 questions lol.....just needing to be *absolutely* sure & educated on this..... as this is a MASSIVE investment.
Is Shared Ownership therefore isolated to SOLELY new builds? No, this is any shared ownership property, both new build and second hand properties available.
2. Or does it extend to "second hand" homes too (implications if so)? Yes. Implications... Same rules apply as new builds.
3. Does the fact that we'd be First Time Buyers in our 40s & 50s go against us in any way? Only the maximum length of term you can have (Until age 69 max or 74 if you have a private pension)
4. I see you've provided an email address in one of your threads...is this for free impartial advice from you directly? Yes - alex@mortgagechain.co.uk
5. What exactly is Stamp Duty & is it applicable on Shared Ownership? This is a government tax you pay for buying a home. It only applies to the share you buy and if that share is under 300k (or 500k until March 2021) you have zero stamp duty to pay as a first time buyer. Here is our stamp duty calculator for reference: mortgagechain.co.uk/stamp-duty-calculator/
6. Is Shared Ownership the same as Shared Equity? No, shared equity is more a reference to the help to buy equity loan.
I'm so sorry for the 109 questions lol.....just needing to be absolutely sure & educated on this..... as this is a MASSIVE investment. No problem! I hope this answers your questions, any more let me know! :-) Alex
@@alexkerrmortgage Cheers. I've since purchased a home.
Thanks for the vid. Informative intro vid for me in the subject of shared ownership.
No worries and thanks for your message Poe Gerard! We have also released a more recent video which in the notes includes a link to the new government changes coming into effect which will make shared ownership much better! Video here - ua-cam.com/video/_qCR6gFJFX4/v-deo.html
Hey, thank you for the video. What happens when you come to sell? Do you just advertise your share to other potential buyers as normal on for instance Rightmove? And is it harder to find buyers because of this? Thanks!
Hi Mike, selling is very similar to a normal property sale and yes it would go on all the portals. The housing Association may help or they may have estate agents associated with them! Double check with your housing association. Alex
Hi Alex,
Great video!! We bought a 50% shared ownership flat and planning to buy another property for investment to rent out. Is it possible to buy an investment property if we bought our first with help to buy and shared ownership? Many thanks for your answer.
Olivér Nagy hi Oliver, yes that is fine! Not an issue at all. I actually have it on the list to do a video for a first time landlord. The deposits are a bit bigger. Are you aware of that ? Alex
alexkerrmortgage Thank you so much for your answer Alex! Really appreciate it. Also I didn’t know about the higher deposit so thank you for that as well!
Great content but do have one criticism, 6:50 you talk about how much the service charge is, but then you just go on to say that there is a service charge... I respect that it may be different for different areas but a ball park figure would have been better than none in my opinion.
Hi John, thanks for watching and the feedback. Let me see if I can add something to the notes below to make that clearer.
I am planning on doing a new one in Jan 21, so will be sure to make that area clearer.
Thanks for the feedback and take care 🙏
Alex
Hi and thank you for your useful videos. I'm thinking about doing shared ownership , but wanted to know is there a way of roughly calculating how much my mortgage, rent and service charge will be?
Hi Kuomi! Please see this video on this subject :-) ua-cam.com/video/raHv6xnO8lE/v-deo.html
Hi, Alex thank you for this helpful video. I would like to know about the lease condition. What minimum remaining years we should looking to before buy the property? Kindly please reply.
Ideally 90+
@@alexkerrmortgage Thank you.
Do you still have to pay rent and service every month even after you finished paying off the mortgage?
You would only start paying the rent once your own 100% of the share.
@@alexkerrmortgage
Thank you
We've gone with help to buy instead of shared ownership. I know not everyone can do it. My friend does SO, owns 40%. Her interest rate on her mortgage is 4.5% and she's only paid £780 off her mortgage in 3 years. Our mortgage with HTB is 1.7%. I didn't know SO mortgage rates were so much higher!
It all depends on your circumstances, there are lower shared ownership rates as well… Thanks for watching, Alex
Het Alex, great video! i loved it. I dont get who owns the other part of the asset. Is it a construction company or the goverment? Thanks
Fernando López thanks Fernando! the housing association ! That’s who you rent the part you do not own from. Does that make sense ? Alex
Just a quick question when I finish paying off my 25% worth on the property do I still have to keep paying rent or do I stop op up or do I have a choice to keep pain so I can pay off the house and have it as 100% of my own.
Hi Cassandra, thank you for the question! You will always pay rent on the share you do not own, up until the point you own 100%!
Hey! Thank you for the video, really useful. My partner and I are looking to buy a house in about 4 years time, at the moment it only seems like we can go shared ownership. We have been looking round and seeing what the prices are now and it works out to be around £700 each, inc. bills, rent and mortgage. We would like to staircase too. We have found an area good for us both, would you recommend we go shared ownership starting at 50%, or rent? Renting seems so expensive for what you get, thanks.
Glad it was helpful! I always say that shared ownership is better than renting.... as owning 50% is better than owning 0% when you rent! You have a mortgage and should be creating some equity for yourselves so you can buy outright later on. Good luck! Anymore questions let me know. Alex
alexkerrmortgage that’s true - thank you very much :)
Hi Alex,
Im considering a shared ownership mortgage. I am committing myself to work in an area for around 2 years minimum probably closer to 3. The reason i am considering shared ownership even though i can afford a full mortgage and deposit is that I do not want to commit to buying a full at this moment in time and would prefer as much flexibility as possible regarding my future career. I do not know which path to start on can you provide any advice?
Thanks
Hi Tom, that sounds like a sensible plan! There is quite a lot to it. We offer a free analysis call to go through this as part of our service. If this is of interest please call my team and ask for an analysis call on 03333446869 - Look forward to helping if thats something you are interested in. Alex
Hey dude, Did you ever follow up on this plan?
Thank you... If anyone can answer....who will be responsible for internal repairs on shared ownership...
I think they’ve updated it now so whoever owns the percentage you don’t will pay for repairs for 10 years
You at the moment, but shared ownership is being reformed and will soon be the housing association. It will be under the affordable homes scheme, I have not heard on a release date as yet but will do a video when it is active
@@charlottecollins9215
Thank you... that's relief and good thing
Very informative tips. Thanks for sharing.
Thank you this was very helpful..
Glad it was helpful!
Thanks Ever so much Alex. A question if I may: when you purchase extra shares, do you go through the whole process again? I.e. are there additional cost involved?
It’s a shorter process and the housing association will usually charge for this.
Thanks for your nice video ,,, one thing I ask can we have right to sale our share anytime???
Humera Faisal hi Humera, you can sell your property of course, but housing association rules can vary, so it’s best to check with them the terms at the start... but you can sell the property of course, you are not tied in for ever!
Really helpful pal 👍
Thanks for watching!
Good information, thank you.
Very helpful video. I have a help to buy ISA, can I use the money in that as a deposit for a shared ownership property?
Dan S you certainly can! You can use it on any purchase and still obtain the bonus. Where are you in your stage, have you started a property search as yet ?
New subscriber here! Thanks Alex this was brill :)
Welcome and thank you very much for subscribing Mya, sorry for the late reply, it's been a mad few months!
Quick query if you own a shared ownership house. And decided to buy another buy to let property could you do this?
Check with the housing association first but it should be ok.
Thanks for the info
Worst thing we ever done buying a shared ownership flat. When we first moved in the rent and service charge was very affordable. Within 2 years the rent and service charge went up by £200 pcm. And whenever you call up the property management they just say the money will go up by minimum of 1% every year. I'm estimating within the next 5 years this property will be deemed unaffordable for us. Just be aware it starts off great but inevitably your bills will sky rocket
Hi Adam, thanks for sharing. Who is the housing association ? Alex
Hi Alex
W'd you make another video with explanation about how share ownership property selling process looks like?
I’ve put this on my list :-)
Can you rent out the shared ownership property?
I’ve been reading that almost always you can’t, is there any possibility you can?
I’ve not come across a situation where you can rent out a shared ownership property.
@@alexkerrmortgage
Thanks for answering, love your content btw keep em coming
I was wondering I have bad credit but I was woundering if I pay 35k upfront that’s the 25 per cent . Will I have to pass credit checks still to rent can I pay 35k upfront and not have a mortgage
I’m not sure about this, I would speak to a housing association about this, I’ve never come across a scenario like this.
I'm a therapist would I be able to work from with shared ownership ? Or would I be limited and classed as a tenant?
Hi Char, of course, there are no restrictions to that working sector. As long as income etc works out then yes!
Great video. Are you still locked into the housing association rules and ground rents if or when you own the property outright? Or does this change from association to association?
Good question! It all depends on the housing association. Some will allow you to own the freehold and others will not. However once at 100% ownership there is no rent to pay...
What do you mean by you can only look/ buy shared ownership properties?
Hi Caitlin, please point out which area of the video that is so I can let you know! Thanks, Alex
Hi, I think I might know what you mean now… If you are looking for a shared ownership mortgage, you can only buy shared ownership properties. Alex
Hi Alex, I'm interested in a shared ownership in Essex. Linden housing homes said. That I can only do mortgage though the company, they recommend.
Thinking because they would charge a higher rate. Is this correct?. Thanks.
Hi Stevo, it is not a requirement to use there brokers! Hopefully they will not charge higher fees but feel free to get in touch if you want some options... Where is Essex are you ? I am Chelmsford.
@@alexkerrmortgage
Hi Alex cheers for the info. Will search other alternatives.
From Colchester.
Very good video, what happens when the mortgage has been paid off, if you don’t have money in the future to staircase, thanks
Then you would just own your share in full…
Thank you for this video! One question please, so if you go for a property of 25%, you're paying the mortgage but also rent.
Does the rent go towards the remaining 75% of the property? Or is the rent going nowhere? This is the part that confuses me as I'd like to know whether it goes towards the total payment of the property or whether it's just for residing there while making payments.
Thank you very much!
Your renting at a discounted price because you own part of the property. The rent is not paying off the 75% because someone else owns that your just paying them to live there.
The mortgage payment will reduce the balance on the share your own, the remaining share you pay your rent to the housing association, so the housing association benefit from this element. I hope this makes sense, any more questions please let me know.
@@alexkerrmortgage So, when can be 100 % ownership and methods?
very well said sir very clear
Hi nice planning to buy share ownership in our area do u think I need to push the mortgage. What advantages to buy share ownership?
Thank you for watching. Shared ownership is good in my opinion, if you have no other options. It is great for getting a foot onto the property ladder. When you say push the mortgage, what did you mean by that ? Thank you!
I mean 45% shared ownership it means I’m not entitled to buy the 100% of the property? . Forever I will rented the place even I already paid off the 45% of the property?
Hi alex it’s very informative , is it possible if we can buy shared ownership with maximum deposit so we have less morgage , and also whats the difference to get mortgage direct from bank and to involve broker .
Hi Saqib, yes it is... a broker will likely provide you with the best lender for you first time, and do all the work for you, where doing it alone would mean doing your own research and understanding the criteria correctly!
How easy is to sale your ownership of the property? Does the house association buys it or does it have to go on the open market? I heard of many people getting stuck in it not been able to sale.
As long as you have equity you can sell it the normal route... However doublecheck with the housing association, as they may need to value it first.
Hi Alex, thanks for the video. Can I use my Lifetime ISA towards a shared ownership mortgage ?
Yes indeed you can use that for any type of property purchase.
Nice one thanks! I am wondering whether 1. they will let me rent out a shared ownership new build flat if I wanted to and 2. whether the new owner can sell it freely on at the normal market price...? Would love to know! I will ask them though.
Hi Tania, you cannot rent out a shared ownership property and in regards to selling it you can tell it what you want at the market value.
@@alexkerrmortgage Thank you for answering my question!
Hi Alex, what would you say would be the middle ground between shared ownership and buying a house normally. Is there one in between?
Hi Alex Sonko, I would say shared ownership is the middle ground between buying and renting or you could say purchasing a 50% share is the middle ground of shared ownership 👍🏻
alexkerrmortgage thanks pal, I’m in a position where ive recently started a gas engineering company I earn good money but as it’s new I won’t be able to prove heavy income on the books me and mrs have abit of deposit money and desperate to jump on the ladder she has average paying job which we should be able to get a shared ownership mortgage for an ok % would you recommend to hop on shared ownership, new build nice location where house price is likely to rise or would you encourage to hang on to buy without the gov schemes? Thabks
Alex Sonko I think anything that helps you onto the ladder is a positive step. I would say get your first year in business done. Is it Limited Company it sole trader ? Then let’s have a chat see what your options are. Just save save save until then! What date did you start trading ?
Thank you for this
Nice information sir
Thanks and welcome
Thanks for your videos! Can you suggest some good house associations in London? another question is the does the rent increases and the market value of the property increases?
Hi Marcelo, the rent should decrease as you buy further shares. I cant really recommend housing associations, just look for the online trust pilot and google reviews and that will give you a good idea!
thank you first step to buy property
Hello! Great video thank you so much.
If you’re considering not staying in your shared ownership for too long (maybe no more than 5 years) would you say it’s beneficial to *not* staircase as it may be harder to sell say 75% share compared to 25% (with the idea in mind that shared ownership is supposed to be aimed at first time buyers with low deposit etc.)
What’s your thoughts on this? Thank you
I would say it’s a good point! But in my experience shared ownership properties seem to sell well and if you’re at 75% then you’re close to 100% so you may as well keep going!
I’m looking to buy my first property. Given current situation ...I think I am on hold now. My annual income is low and I am single, which is not helping me either. My Question: which % is the best to start? I am aiming for 50% minimum... and also, is it possible to buy out the property entirely after xxx years? Thanks, good video.
You can "staircase" which means buying more equity. In regards to a share you can buy, you would need an affordability check. Maybe use a lenders affordability calculator to give you an idea.
I have a question, my husband is technically a property owner, he and his siblings received a house as an inheritance, my husband was the mortgage "owner" the house has now neen sold and we currently rent (we never loved in the house) does this disqualify my husband and I from shared ownership? I am unemployed, my husband works full time.
I’m pretty sure you should still be fine with shared ownership… Feel free to book in a free chat if you want to look into the options. Here is the link. link.coursecreator360.com/widget/appointment/mortgage-chain
Thanks for the analysis! 🔍 I have a quick question: 🤷♂️ I have these words 🤨. (behave today finger ski upon boy assault summer exhaust beauty stereo over). Can someone explain what this is? 😅
@@GinnyLazer what do you think they mean ?
Does getting a shared ownership affect how much you can borrow for mortgage. Me and my partner notice as soon as we say it's shared ownerships the amount ee can borrow go's.down anyway. Doesn't this defeat the point of this . ???
The amount goes down because you need income to cover the rent as well. I would focus on the full purchase price and not the mortgage amount as the purchase price will go up compared to buying outright.
Hi do most shared ownership properties allow you to sublet/rent out on airbnb?
Hi! Afraid not no….
If you put down a higher deposit than what’s required, does it make your rent cheaper?
A higher deposit would make the mortgage cheaper, buying a bigger share would make the rent cheaper. Does that make sense ?
@@alexkerrmortgage That makes sense! Thank you for responding.
Hi....is it true that all shared properties are leasehold?
Thanks for the vid but I would never touch a shared
ownership, there are many more cons than you have listed.
Its a win win for the HA
Abba Roonie hi Abba. Yes that is right, you pay a rent on the share you do not own, the Housing Association are the freeholder. The reason for making clear the disadvantages is purely as a “approach with caution” message as some housing association rules will be more favourable than other’s so be sure to check. But I am of the opinion that shared ownership can be fantastic if used as a stepping stone if you find a good Housing Association who have fair terms. It’s not a good idea as a long term plan, which is the main reason the downsides are highlighted. I hope that helps.
If you buy a new flat and live there for 10 years. You still may have 90 years on the lease maybe........no big worry in my view. Oohhh and I had no lease on my 3 bedroom home.
Does the government 5% help to buy scheme apply to new build shared ownership properties?
Unfortunately you can't use the help to buy equity loan for shared ownership properties, however with just a 5% deposit required of the share you are purchasing, this means the deposit is 1/4 of what you otherwise would need to put down, making it much more achievable.
Can you please explain how much you will pay on the mortgage if you put down 5%- 25% of deposit. Cause you talked about the rent, what about the repaying the mortgage
Hi Mizz, all depends on your credit history and the lender and rate.. there is no one answer that fits all for this, unlike the shared ownership rent... You would need an analysis call for this! Are you thinking of shared ownership ?
My Shared Ownership house is currently at 75 years lease, but my Surveyor has just valued the property without knowing the lease is below the threshold of 85 years. Would this affect the value of the property as I am Staircasing from 50% to 100% which makes the property automatically a freehold and no lease extension needed?
It all depends on the housing association in their rules, but in theory as you are buying the freehold completely the lease becomes irrelevant
Both partner and I are early fifties.. wondering if we are now too old
It would mean a shorter mortgage term so that would need to be affordable. Email me your incomes and outgoings and I will take a look. alex@mortgagechain.co.uk - Thank you for watching!
Hi there. I was looking at shared ownership, but then from others who i know who have shared ownership and from research -if the housing ownership decide they want to do some repairs, especially when living in a flat, the tenants/home owners are slapped with a hefty bill that they have to pay. For example, one person I know got billed 10K as the housing association wanted to redo the windows of the property. This is soooooo off putting. What happens in these cases? Can I decline? Can the service charge not cover this? How can this be avoided?
I hope to hear from you soon 😊
*association- not ownership
If you have a leasehold property, then you have no choice, but to pay. New Builds could potentially avoid this problem for a long time or doing some research in to the condition of the property or asking when the last repairs were carried out. Nothing you can guarantee to stop this happening unfortunately.
@Alex Kerr - Mortgage Chain Ltd i thought as much 😞 i will really have to do my research like you said. Thanks for your response 😊
Whats the advantage of being in the property ladder?
It means you own your own property as opposed to renting, you can do what you like to your own property and one day you could leave something for your children.
@@alexkerrmortgage Yes but. when we think about the interest we are paying for the mortgage, is it really worth buying a 300k house for 500k (with interest) + house maintenance+ ground rent + service charge(if applicable) when comparing to renting a property and investing the rest of the money in the market?
A very important point which you forgot to address .. are shared ownership more difficult to sell ..
Depends on the area and build all the resales I looked at were gonna pretty quick .. I think it’s a general problem with new builds my brother couldn’t sell his as fast not share to buy, but so many news one were being built at the same price
what happens when you want to sell your share? do you have to sell that back to the Housing Association or can you sell it on the open market?
Hi, just touch base with housing association and find out their rules, but its a normal process, rightmove etc to sell...
Thanks for the video. I wondered about the home improvements, since you don’t technically own the ground as a leaseholder, are you allowed to change floor finishes from carpet to something else for instance ?
I've had read over the scheme and you a limited on what you can change. Belive rules will differ from one housing association but general rule is you can change flooring and you can paint and decorte. But you can't knock down and build walls or build an extension on the back
A great answer by Luned below, but the housing association will stipulate these rules, so always check with them!
Yea you can change flooring or anything that doesn’t change or May affect the structure of house
Thank you
Welcome!
Great video. But shared ownership sounds like a terrible idea.
Naomi and Jack thanks for your comments. A lot of people share this opinion, especially on a long term basis. However there are plenty of good housing associations and the biggest positive for shared ownership is that it can help people on to the property ladder where otherwise they would not have had a choice. Always make sure you can buy a bigger share later on is my biggest tip. This is called “stair casing” 👍🏻
@@alexkerrmortgage I agree it's better if you have the option to buy the rest. But great explanation of the topic.
Naomi and Jack thank you very much, very kind. 😀
@@alexkerrmortgage hi. Why would it be a bad idea for longer period to own shared ownership property ? Maybe for some people it's enough to own 25% of the property, pay off the mortgage and just pay the rent and the charges like 300 pounds a month . This way it's still much cheaper than to rent a property where you pay more and you don't even own anything from that house.
Thanks in advance for your answer :)
@@ggggg895hungary Hi G! Only if you do not purchase more shares later is it not as effective as it could be. However with the governments reform of shared ownership, you will be able to buy shares in 1% increments, rather than a minimum of 10%, which in most cases in the minimum you can purchase, meaning some people can't afford that, and never purchase further shares. However with this new reform mean's longer term will now be a better option as purchasing an extra share will be much easier. Does that make sense ?! Alex
Can you buy a Percentage with cash, and then rent the remaining Share without getting a mortgage?
I am not sure but I imagine you could buy a share outright, however check with the housing association.
How much are the fees involved with a shared ownership on average? I'm waiting for properties to be released and I have the deposit ready to go. I just want to have an idea on fees so Im not cut short by that. Also when do you pay all of your fees. Up front or at the end of the sale when deposit is moved and you're moving in. Completion is looking at autumn this year to spring next year so another 6 months of saving would be ideal for myself however I'm not sure is payment would switch hands a long time before this
I think this video I did could help you!
ua-cam.com/video/0afQ-zqHIi8/v-deo.html
very informative. just missed the fact that if you need/want to sell your share, that you cannot negotiate what you sell your share for. the leaseholder can state that you can only sell your share for X or more, and if you get an offer for £1000 less than X, you cant accept it.
Hi Bruno, that’s a fantastic point and thank you very much for sharing, very helpful. Have a lovely day and any questions let me know.
The thing i don't understand about shared ownership is that if i were to buy a cheap small flat the mortgage repayments could be around £320 a month. But with shared ownership the same size flat is heading for over £600 with mortgage, rent, service charges etc. So how is this helping with regards to affordability or helping people to buy homes?
Hi Gemma, can you provide the links to the two properties you are referring to? I'm not sure of a situation like this, unless the properties are in completely different locations? Keen to help you figure this one out!
I don't know if it's just me or not. I am trying to open the "download the checklist shared ownership file" from underneath the video. The redirect doesn't seem to work and it just says UA-cam.com redirect.
Can you provide the link to the shared ownership file that you talk about in this video? Thank you
I will get this checked out… In the meantime if you download the first time buyer pack, the shared ownership document is included within this pack! Here is the link - www.mortgagechain.co.uk/first-time-buyer-tips/
Hi I’m wanting to purchase a property on my own, I only earn 21500 a year, so shared ownership will be the avenue I have to take, can I put a larger deposit down ? Say 20k instead of 10k?
Hi Zoe, thanks for watching! The more you put down, the better the rate potentially and more lenders you may be open to. Have you got an idea on the full purchase price of a property you would be interested in ?
alexkerrmortgage for a small 2 bed house in my area I’m looking at around 260k + 😞so want to save as much as possible to give myself the best possible opportunity!
Zoe Billingham hi Zoe, what share of the 260k were you considering... 25% ?
Damon Wayans no one likes a negative nancy, theres avenues I can take to become a home owner and I will be owning a home within the next year, so thanks for wishing me luck, but il get there and I have no doubt in myself.
Zoe Billingham feel free to book a free analysis call with me so we can
work out borrowing potential. Shared Ownership works differently and let’s see what your options are. Book a free chat here! (Choose analysis call) - outlook.office365.com/owa/calendar/MortgageChainLtd@mortgagechain.co.uk/bookings/