Keyworker Shared ownership?

[pinkshell_nails]

Hi,

I am currently trying to get a mortgage, however it is proving to be difficult as it looks like i just dont earn enough and i havent got a substantial deposit! There is a fairly new scheme for keyworkers (nhs staff, police staff, teachers etc), in which you can buy a % of a property, and pay a reduced rent on the remaining %. What im asking is, have any of you geeks looked into this, or even gone through with it? I have done my research, and sent off an application form, and am waiting to hear back, but wondered if anyone has already bought a house/property this way and if so have you got any advice, hidden pro's/con's.

Thanks in advance guys.

Michelle x

 

[tinkywinky]

I bought my first house when I was 22 on 50% shared ownership.

I found the following positives and negatives;

Positives
You can get a nice house when you may not be able to afford a mortgage for a certain amount
House was well built and clean, in a nice location
I could afford to get away from home
You can buy the whole share or sell if you want

Negatives
The money paid in rent is not going towards a mortgage
Some people in the area where I lived weren't the nicest people to live near (noisy and inconsiderate, lots of kids riding round in boy racer cars late at night)
When you sell you won't make all the profit on the house
It is harder to rent out the property if your situations change (e.g. I got married and decided to sell up rather than taking on a tenant, as you had to get permission etc from the housing association)

In the end I couldn't wait to move, we had an idiot of a neighbour move in who would run round the house shouting til 4 -5am in the morning, I had to be up for work at 7.30 so it wasn't funny.

But then you get silly neighbours all over the place!

Hope this helps. It certainly did me the world of good to get on the property ladder, my first home was lovely and I do miss is sometimes Lots of happy memories there.xx:cry:

 

[pinkshell_nails]

Thanks for the help tinky, ive sent off an application, so i'll just wait and see what happens, it may turn out not to be the right thing for me, or it might be great! Thanks again, x

 

[Tammy BTN]

I work for a conveyancing solicitors, we do a few of these at work. Alot of my friends (single gals) looked into it but then found the homebuy scheme, same thing but you can choose ANY house - not association ones, and they put up 25% of the purchase price and you so not pay rent on the balance. you just owe it to them when you sell or you can buy it of them bit by bit.
:green:

 

[connoisseur]

Hi,

I am currently trying to get a mortgage, however it is proving to be difficult as it looks like i just dont earn enough and i havent got a substantial deposit! There is a fairly new scheme for keyworkers (nhs staff, police staff, teachers etc), in which you can buy a % of a property, and pay a reduced rent on the remaining %. What im asking is, have any of you geeks looked into this, or even gone through with it? I have done my research, and sent off an application form, and am waiting to hear back, but wondered if anyone has already bought a house/property this way and if so have you got any advice, hidden pro's/con's.

Thanks in advance guys.

Michelle x

Hi Michelle,

I'm a primary school teacher and brought my house just over two years ago via the 'Key homebuy' scheme.

This scheme was where the housing association gave me loan for 25% of the purchase cost. I only pay the loan back when I SELL the house, and then it's 25% of the market price.

This scheme works perfectly for me and my husband. All we pay is the mortgage on the remaining 75%.There is absolutely no way we would have been able to afford to buy otherwise.

Hope that helps in some way?

Amanda

 

[Urban Geek]

I bought my first property about 15 years ago on DIYSO (Do It Yourself Shared Ownership) where I could buy a % of a property anywhere in England or Wales. I purchased 50% and payed rental on the remaining 50% and after a couple of years bought the Housing Association out of their 50% share.

I found it an excellent scheme as, at that time, the property market was extremely rocky. If the property went into negative equity, I would only have been responsible for 50% of that. Then again, I only gained 50% of the equity gained but it was a safe bet for me. Also, when you go to sell or purchase the remaining %, any improvements you made on the property will be added to your share.

I would never have got on the housing ladder without the scheme. Good luck!

 

[nailsbydesign]

My son and dughter-in-law are buying their house on a 50/50 shared ownership but although they only theoretically own half the house when any repairs minor or major need to be done the housing association do not pay 50% towards them, they have to pay them all themsleves.

 

[pinkshell_nails]

Thanks for all your helpful advise, ive sent off an application, and am just waiting to hear back from them now. Im going to have to get something sorted asap, as when i got home from work today, there was a for sale up outside my rented house!