Shared Ownership schemes..Would you ?..Have you ?

There have been lots of scare stories about this in the Times . Sorry I cannot tell you more but their financial advisor was really against older eople doing this .

In addition there are plenty of nightmare tenants around, and now regulations seem to be skewed in their favour, landlords lumbered with these now have fewer ways of reclaiming their property.

Obviously of course there are good and bad on both sides but there still needs to be robust legislation in place to assist landlords.

Where would renters be if private landlords like us ( albeit on a very small scale) felt that there were too many obstacles in the way to evict problem tenants and decided en- masse to sell up?
Some already have which means there are now too many people chasing too few properties.

SewnSew

"but then landlords are not exactly renowned for efficient and speedy fixing of any issues, are they?" Witzend, that's a bit unfair. I have a number of houses and attend to problems within 24 hours if at all possible, certainly within a week. Not all landlords are remiss.

A bit late to reply, Sewnsew, but yes, it’s perfectly true that not all landlords are remiss. I am one who certainly isn’t, but I’m afraid too many of them are.

That’s the difference between buying a leasehold property and a freehold one, shared ownership or not. I have never owned, and will never own, a leasehold property. The service charges on my son’s London flat are very steep, as he knew would be the case when he bought it. There is always something which needs to be done but at least the developer has replaced the suspect cladding at its own cost.

Yes initially it was good we could manage the mortgage, Rent and maintenance charge. But we face an extra bill of £2,489 on top of the normal maintenance charge we pay monthly. Its due to increased costs of the lighting in our block of flats. In looking deeper we discovered we needed to register to check our maintenance account . There we discovered an extra £200.00 also added onto our bill which came as a shock. We are expected to absorb this extra expense. We also know we have to pay for new fire compliant front doors when they are fitted at whatever cost the landlords decide on top of the £2.600. People talk about shared ownership as just a mortgage and rent - its the extras on the maintenance that the housing associations/landlords can add on due to the conditions in the lease you have to sign. These may cost you your home.

It sounds as though your neighbours should never have considered shared ownership but continued renting. A couple always have to consider what would happen if their income were suddenly halved.

They can work for some. However, my elderly neighbour and her late husband did this and when he died she could afford neither the rent nor the mortgage. Her house is in a bad state of repair as she can’t afford to maintain it and she is pretty miserable about it all. If she was to sell it, she’d be unable to afford anywhere else. So it’s not been a good choice for her. We had some shared ownership properties built nearby about five years ago and they are absolutely tiny. We were interested in them when they were being built, but realistically we would have struggled with the size.

Yes, good point.

Yes I think so. He understands the fact that he doesn’t own the house (and that doing half an extension isn’t going to work), so he’s not ‘complaining’, but as the OP was asking about experiences of shared ownership I thought I’d mention it.

Has he asked for permission to make alterations? He is unlikely to be given permission to extend, but internal remodelling not lowering the value of the property might be permitted.

I agree, GSM. My nephew lives in a house, which he maintains and decorates at his own expense. As I said, his only concern is that he is not allowed to extend or rearrange rooms as his family grows. which means that he might not be able to stay there as long as he’d planned. This wouldn’t matter so much, but making a move is difficult because he doesn’t own all the equity.

my choosing.

And yes, I knew before I bought! Lathyrus. Doesn't make me like it!
But Co ownership was better than renting. It meant I could live in an area of mg choosing.

I don't call replacing something you broke maintenance. I'm talking about keeping the structure in good condition. The co owners get half the profit when the house is sold. If its well maintained it will fetch a higher price.

With flats the landlord will always be responsible for the structure, roof, windows and drains. A service charge will be levied to cover such things and share access ways, lifts etc. If you are buying a shared ownership house, you will be wholly responsible for its maintenance and if there are shared access ways, open spaces etc which you are entitled to use a service charge will be levied for their maintenance. All this is clearly set out in the documentation and there is no excuse for not understanding these matters before you commit to the purchase.
I see no reason why someone buying a shared ownership house should expect not be responsible for all maintenance - the rent they pay on the unpurchased share is subsidised by the housing association so why should the HA also subsidise maintenance?.

Of course 😬 We all like a bit of a moan😁

Hope you feel a bit better today.

Oh yes, my nephew was aware of the conditions of the contract. That doesn’t mean he can’t have a bit of a moan though, surely?

nadateturbe

^having to pay for all your repairs!^
The only thing I felt was unfair. Maintenance should be shared equally.

With my sons flat and the ones on the estate where I lived a few years ago the fabric of the building, roof, windows, external drains etc were the responsibilty of the Housing Association and the internal the responsibility of the buyer. Repairs and redecorating of the shared hallway and stairs were covered by the monthly maintenance charge.

It’s a big mistake to assume that the conditions of purchase in one experience are the conditions for all.

I’m flummoxed by the posters who unexpectedly found a condition. Didn’t they read the agreement before they bought🙄

I don’t know about that.

If I break something in my house I pay for it. I don’t see why a co-investor should pay half when they don’t live there. My nephew has never complained about that - just that he can’t please himself when it comes to home improvements. They have to be agreed by the association and they decide who carries them out (and at what cost).

having to pay for all your repairs!
The only thing I felt was unfair. Maintenance should be shared equally.

What do you call a ‘ludicrously high’ income ruthie? And how does the FSA meddle with credit card repayments?

Co-ownership in NI is a great scheme. Worked for me.

I think that is in case you choose a company that makes a botch of it which reduces the value of the Association's share. It makes sense, really, but yes - it annoys my nephew, too.

I tried applying for shared ownership several times, and the housing associations wouldn't even consider my application. They are demanding a ludicrously high annual income and if you don't have that they won't even look at your past payment records etc. If I earned as much as they specified I could afford an ordinary mortgage! I understand this obligatory high income is an FSA ruling. The same department which meddles with credit card repayments. All this and having to pay for all your repairs! (Yes I said "pay for". You don't get to choose the contractor.) Forget it!

My nephew lives in a shared ownership house. His business was just starting and it was the only mortgage he could get. It's worked well so far, but there are restrictions on things like building work, which have been annoying as he has a growing family.

Now that he's got a bit more money he is looking to move, but it will be a bigger jump from this house to the next, as he doesn't own all the equity. OTOH, he at least has equity, which he wouldn't if he'd been renting all of the property.