buying my own house....

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buying my own house....

Postby crazy_in_love » Tue May 08, 2007 4:41 pm

Does anyone know anything about shared ownership mortgages?? I am interested in moving out, but i cannot afford to buy a house on just my wages. I have seen some properties advertising 50% shared ownership, but i want to know if anyone knows of any pros or cons to doing this.
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Postby Teenspirit » Wed May 23, 2007 2:02 pm

I understand a little about this as I wanted a shared ownerhip on my place and my best friend has one on hers.

Basically either the council or someone else will have a whole house to sell for say £100.000 but as some people cant afford to buy it off in one go they sell shares.

25%
50%
75%
100%

It is normally 25-50%.
So you would pay £50.000 for 50% of the house.

So you would need a mortgage to buy half of the property which I was told would be £600 pm.


So that would leave £50.000 left to pay (25-50% left) so depending on your earnings you would either buy 25% 0r 50% of the remaining property.

So of you got 25% then the housing association would own the remaining 25%

So as well as the The £600pm for your mortgage.
You would also pay £400pm to pay off your 25% outstanding then once that was paid you would buy the last 25%.

Its all confusing if you have the money and would have a problem getting a full mortgage then this is the best way to go alot of propertys are now shared ownership as they want the younger generation to get on the property ladder.

There are your other costs though like normal legal fees, survey fee's council Tax etc you would def benefit from getting some real advice citazens Bureat may know.
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Postby crazy_in_love » Fri May 25, 2007 6:37 pm

hey and thanks!

shared ownership seems to be a real tricky subject as not many people know about it. since posting this topic i have learnt more! the scheme is government funded so the price of your 50% ownership and the rent cannot amount to the same as if you bought the hosue outright. the rent side of the property is goverment funded so is heavily susidised.

I am looking at 50% ownership at 49750 and the mortgage would be£302 a month. that is a mortgage where i pay no valuation fee or product fee (for those of you that know about mortgages!)

The rent is 157 so altogether i will pay 459 a month which i dont think is bad for a brand new property, 2 bedrooms and my own private parking. does anyone think/know is this is actually expensive???
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Postby LME79 » Wed May 30, 2007 7:37 am

Try here - www.fool.co.uk
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Postby Teenspirit » Wed May 30, 2007 4:18 pm

Hey crazy,

Which area do you live in?

I am south east london and that price seems really good for a 2bedroom place.

Good luck with it

x
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Postby crazy_in_love » Wed May 30, 2007 8:16 pm

hey thanks for the replies, yes i live in nottingham, sorry i forgot, because its and apartment i ahve a service charge, so mortgage, rent and service sharge is 523 per month. seems quite expensive but still not as much if i bought outright. I also got told that even if i bought outright id still have to pay a service charge anyway!
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Postby kitten » Thu May 31, 2007 11:39 am

I pay £414 a month on an interest only mortgage of £110,000 on a house we bought outright, so to speak.

Shared ownership is a good way to go when you don't have much of a deposit or can't get a big mortgage but it does seem quite expensive.
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Postby crazy_in_love » Thu May 31, 2007 9:07 pm

this is a repayment mortgage so i am covering interest and capital. That seems cheap as i looked at mortgages for 99500 (the full price of the apartment) and it said £600 per month mortgage, that was with natwest. My mortgage is £302 per month based on a mortgage for 49750. the other £221 is the rent and service charge.
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Postby crazy_in_love » Thu May 31, 2007 9:14 pm

also i forgot to mention, this is a 100% mortgage so i pay higher rates etc, you could have put a deposit down lowering your mortgage costs, You could also have got good rates it all depends.

With my mortgage i got free valuations, no product fee and free legals so thats y i pay slightly higher rate of 6.09%
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