Shared Ownership (rent, home, buying)

[chilaili]

Can someone explain in nice easy terms what exactly this is and how it works? And is it a good idea? Who exactly are you sharing the property with: the bank?

[Hengist]

There are many schemes, but in general you get all the disadvantages and costs of homeownership, plus rising rents on the part you don't own. There can be all kind of restrictions on selling on, such as a housing association deciding who you can sell to and setting the price. I believe there are many singles in poky inner city flats unable to move once they want to start a family.

We turned down the chance of a shared equity (slightly different scheme) deal on a new build, that would have allowed us to defer £40,000 of the price for ten years. Five years on, we would have been nowhere near raising the required sum, and property prices in that area have fallen by that amount anyway. And the road we would have bought in now looks very shabby.

My personal opinion is it's a way for builders to overcharge for properties, rather than sell them at true market value. If people stopped doing it, new build property prices would fall. The only way it might be worth it is if you were buying a forever home in a very expensive area.

[LondonAreaWeatherSummary]

Originally Posted by Hengist

There are many schemes, but in general you get all the disadvantages and costs of homeownership

This. Youre responsible for all maintainance, but have to pay rent and a mortgage.

Its simply for people who feel the need to call themselves 'homeowners'