can someone explain sharedownership of a property?


    I'm looking for a flat/ house , and I saw shared ownership schemes , can someone explained this , and if you've had experience with this .
    are there any pointers I should consideer or any pitfalls I should lookout for ?



    This usually means that you own a part of the property, and pay rent on the remaining half/quarter etc. The other half is often held by a housing association or the builder.
    This is not uncomman but you just need to make sure you are happy with the rent increases when they happen, how often, maximum allowed etc, and any buy out clauses should you find yourself in a position where you need to sell or buy the other part

    Shared ownership is where you only buy a percentage (usually say 75%) of the property and either the builder or more likely housing association retains the balance.
    This can be a good way to get on the housing ladder, but the downside is you don't own the whole property. You usually have to pay some rent on the part you don't own and as and when you sell, you have to pay back this part. The downside is that you don't just have to pay back the 25% you didn't buy but 25% of the selling price.
    So if you bought for 100k, you pay 75k and they retain 25k. But iof you sell for 150k, you need to pay them 25% of 150k = 37.5k.

    Shared ownership
    Shared ownership schemes are intended to help people who cannot afford to buy a suitable home in any other way. You share ownership with a local authority or housing association. You pay rent to the local authority or housing association for part of the property and a mortgage on the rest. You will usually be able to buy further shares in the property at a later date.

    To qualify for the scheme you must usually be a first time buyer, and priority is given to local authority or housing association tenants. Other people in housing need may also be considered for the scheme. You must be able to get your own mortgage to meet the purchase costs on a percentage of the property.

    In Scotland, shared ownership schemes are sometimes known as joint venture schemes. In Northern Ireland, the Northern Ireland Co-Ownership Housing Association runs a similar scheme, called the co-ownership scheme.

    In England and Wales, more information about shared ownership is available from the Homes and Communities Agency – go to [url][/url] or phone 0300 134 500.


    have a look at this…pdf

    its a very good leaflet to explain the scheme. Shared owership is also know as newbuild homebuy.

    Just remember this is a good option if you financialy cant afford an outright purchase but in the long term you maybe better if you can save a bigger deposit and purchase a property outright

    you own the property on a leasehold basis with restrictions on selling and changes you cazn make to the property

    Original Poster

    ahh you guys .. thanks for thar info , will check the links out ...many thanks

    your legal advisor should explain all the benefits and negatives of such schemes

    better of buying a cheap small flat at auction or something and getting a good loan deal,depending on how much ownership you own from the housing association or the builder,they can decide they want u gone sometimes as have a better deal etc

    isnt this pretty much the same as saving the money and renting a cheap place ??,as it just means cheaper rent+invested money really ?
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