Shared Ownership scheme in the UK

For anyone who has previously or currently has a property in the UK as part of the shared ownership scheme, what’s your experience been like and would you recommend it?

I am a single person looking to buy a 1 or 2 bed in London, somewhere reasonably close to central. First time buyer and I feel that really the only option I have is to go the shared ownership route, as it comes about the same cost if I rented. I’d like to know how’s the experience like when selling your share eventually after a couple of years?

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You’ll probably only be able to sell your fraction via the organisation anyway, to whomever they line up, so you won’t be selling at full market price because the organisation’s goal is to get others into shared ownership at a discount, like they did with you.

You might also find your options for a mortgage or remortgage are very limited (expensive) because a lot of mortgage providers won’t want to risk not being able to foreclose on a property that’s shared.

Good luck with that dream of central London as a FTB though.

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I was on a shared ownership scheme and thats how I bought my first property. I was able to get access to the same mortgages as non sahred ownership properties. Initially mortgages for shared ownership was pretty rare (or expensive) but I remortgaged a couple of times and got good rates with HSBC and Barclays.

The thing I dont like about Shared Ownership is that after a number of years of rent increases, it can actually get pretty expensive and the combined mortgage and rent is way above what just a mortgage on 100% of the property would be.

I dont live in London so accept this might be the only way to get on the property ladder but make sure you check carefully restrictions on increasing your share, remortgaging and selling. E.g the Landlord had to consent to my mortgage and remortgage and could in theory have said no!

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Thanks for the input! Yeah that was one of my concerns as it looks ok when you look at costs initially, but I don’t know how much more expensive it will be down the line. I’ve heard horror stories about increase in service fees for the new builds, expensive remortgage options, and difficulty selling your shares of the property.

I’m also still trying to wrap my head around the leasehold, fleecehold and freeholds terminologies. It’s pretty overwhelming for someone undergoing through this process for the first time and I don’t want to be tricked into buying without fully understanding what it entails. It’s also hard to trust an agent to explain things, because their primary purpose is to sell and might intentionally leave out details of the cons of buying through shared ownership.

Good luck with that dream of central London as a FTB though.

More towards zones 3-4 actually, zone 1 is just too crazy it’s not worth it. From the sharetobuy.com site, there are properties ranging £1200-£1500 which is doable for my salary.