Shared Ownership Experiences

[msemma]

In what situation would you recommend shared ownership? What kind of property would be best to buy under a shared ownership scheme? What are AB-ers positive and negative experiences of it?

[SRH]

I bought a shared ownership flat earlier this year because a mortgage lender would not have lent me the full asking price of the property. The mortgage and rent I pay (to a housing association on the portion I don't own - 25%) is nearly as much as the full mortgage would have been. So financially I would have been better off just buying a property at the full price of my flat - IF I could have got a mortage for that! The thing that tipped the shared ownership idea for me was that I thought the housing association who were selling the flat had greatly undervalued it in the first place (so I've got my flat at a really cheap price - it was new-build and a city centre location, which the government is pushing as 'low income' housing). Also, if the property market dips, you take less of a hit with shared ownership. It's not an ideal way to buy, but if you can get it at a cheap enough price, or are struggling to get a mortgage for the higher amount, even though you yourself know you can afford the repayments, then it's worth looking into. Just remember though, that when you sell up, you only make a profit (or loss!) on the share that you own... good luck!