[TeaAndToast]

Hello,

Many thanks for all those who have contributed to this forum, some great posts. My girlfriend and I have been thinking about going co-ownership because my past credit history is bad, and hers is quite good at 950 on Experian after new car finance. Our small deposit was wiped out by an act of nature. I can see the likes of Ulster Bank not requesting any deposit at 50% with co-ownership. But do they frown upon this when assessing? The co-own tool says we are able to go to 100K at 50%. Should we apply now or hold off as we could pull like £15,000 by Aug-Sept.

[TeaAndToast]

I have read many of the posts in the links. I can see where people have lost due to the decreasing house prices, but they would have lost out anyhow, and even less so with co-own. We have rented before and did not want to go down this route again. If we got a house at RV value would it not be a good time to jump in sometime soon if we thought the market was flat-lining? Otherwise we are just paying out money, if we co-owned at least 50% could be ours. My wage would also be saved to staircase.

[Venger]

TeaAndToast, on 27 December 2012 - 10:38 PM, said:

My wage would also be saved to staircase.

Got limited knowledge of co-ownership/shared-ownership, but want to raise a point about staircasing.

Isn't it possible staircasing and buying up more of a share in the property isn't sensible.

If you got to 80% or even 100% then you'd need buyers prepared to pay your 80% or 100% in the future, if and when you ever came to sell.

As buyers, you're not positioned to acquire more than 50% now (even though I don't think it a good idea), becuase of your financial circumstances. Likely the same you'll be limiting your market if and when you come to sell as well.

And the price is likely inflated because of the 50-50 deal. I'd bet you could get it cheaper if offering to buy 100% now, were you able to do so.

You'd also expose your own position to falling prices if you acquire more of a share.

[Si1]

TeaAndToast, on 27 December 2012 - 10:38 PM, said:

and even less so with co-own.

yes and no I believe is the answer

[Guest_Belfast Fubar_*]

TeaAndToast, on 27 December 2012 - 09:47 PM, said:

Hello,

Many thanks for all those who have contributed to this forum, some great posts. My girlfriend and I have been thinking about going co-ownership because my past credit history is bad, and hers is quite good at 950 on Experian after new car finance. Our small deposit was wiped out by an act of nature. I can see the likes of Ulster Bank not requesting any deposit at 50% with co-ownership. But do they frown upon this when assessing? The co-own tool says we are able to go to 100K at 50%. Should we apply now or hold off as we could pull like £15,000 by Aug-Sept.

Whilst house prices are still falling and showing no signs of bottoming out, renting is by far the best option.

[Ausdave]

TeaAndToast, on 27 December 2012 - 09:47 PM, said:

Hello,

Many thanks for all those who have contributed to this forum, some great posts. My girlfriend and I have been thinking about going co-ownership because my past credit history is bad, and hers is quite good at 950 on Experian after new car finance. Our small deposit was wiped out by an act of nature. I can see the likes of Ulster Bank not requesting any deposit at 50% with co-ownership. But do they frown upon this when assessing? The co-own tool says we are able to go to 100K at 50%. Should we apply now or hold off as we could pull like £15,000 by Aug-Sept.

I don't think the entire co-ownership deal is a bad thing.
It allowed me to sell to a CO purchaser and us to move.
I would recommend you keep your options open though. Every 1k you save now in cash and off falling house prices is worth much more to you in the future.
How long do you have between submitting paperwork and having to complete.
If it's open ended - then just submit your paperwork and hold fire.

I would aim under RV, at least 15-20% and then at the present time it's good value.
I doubt my sentiments will be mirrored by many, the majority on the site are anti co ownership and anti anyone purchasing unless they're long time HPCers.

[righttoleech]

Si1, on 28 December 2012 - 01:59 AM, said:

yes and no I believe is the answer

What about maybe as a possibility?

[TeaAndToast]

Venger, on 27 December 2012 - 11:29 PM, said:

Got limited knowledge of co-ownership/shared-ownership, but want to raise a point about staircasing.Isn't it possible staircasing and buying up more of a share in the property isn't sensible. If you got to 80% or even 100% then you'd need buyers prepared to pay your 80% or 100% in the future, if and when you ever came to sell.As buyers, you're not positioned to acquire more than 50% now (even though I don't think it a good idea), becuase of your financial circumstances. Likely the same you'll be limiting your market if and when you come to sell as well. And the price is likely inflated because of the 50-50 deal. I'd bet you could get it cheaper if offering to buy 100% now, were you able to do so.You'd also expose your own position to falling prices if you acquire more of a share.

The buyer would still need a mortgage for the full amount, if we owned 80% then the 20% would go to co-own at the current value. As far as I was told by UPS, we could go for any house they had on the market, so prices should not be inflated.

Belfast Fubar, on 28 December 2012 - 06:01 AM, said:

Whilst house prices are still falling and showing no signs of bottoming out, renting is by far the best option.

I would prefer to remain at home than rent to be honest. I was hoping prices would bottom out by summer 2013, I've no crystal ball mind, tho I did predict the property crash.....

Ausdave, on 28 December 2012 - 09:34 AM, said:

I don't think the entire co-ownership deal is a bad thing. It allowed me to sell to a CO purchaser and us to move.I would recommend you keep your options open though. Every 1k you save now in cash and off falling house prices is worth much more to you in the future.How long do you have between submitting paperwork and having to complete.If it's open ended - then just submit your paperwork and hold fire.I would aim under RV, at least 15-20% and then at the present time it's good value.I doubt my sentiments will be mirrored by many, the majority on the site are anti co ownership and anti anyone purchasing unless they're long time HPCers.

I do not think its open-ended as you select a house, agree a price through negotiation and then forward this to their office for assessment. I guess you could always pull out at this point, but wouldn't want to do this as it could impact on future applications. In the Newtownabbey/Coalisland area most houses I had a look at last night were valued above the RV, to a point of around 10-20% above RV. So a 15-20% under RV is a bit of a push id say.


Thanks for all the communication, helps a lot.

[2buyornot2buy]

If you are going to buy a house in coalisland with co-ownership at 100k that's 20% over RV you need your head looked at. Given the info above i would say you'll be looking many years past summer 2013 before it "bottoms out". Co-ownership is a market prop. It offers little value when prices are dropping. Its really only for people who earn so little they shouldnt be buying.

This post has been edited by 2buyornot2buy: 28 December 2012 - 06:55 PM

[TeaAndToast]

2buyornot2buy, on 28 December 2012 - 06:51 PM, said:

If you are going to buy a house in coalisland with co-ownership at 100k that's 20% over RV you need your head looked at. Given the info above i would say you'll be looking many years past summer 2013 before it "bottoms out". Co-ownership is a market prop. It offers little value when prices are dropping. Its really only for people who earn so little they should be buying.

Shouldn't be buying?

The thing is it will be based on one income and not two, due to a bad mistake a few years ago on my part. I earn a good wage but will not be able to apply for a mortgage for about 3 years. Thus we have the money to pay off, but not just the acceptability level. I would never pay above RV, some sellers are deluded, but some are competitive.

[2buyornot2buy]

TeaAndToast, on 28 December 2012 - 06:55 PM, said:

Shouldn't be buying?

The thing is it will be based on one income and not two, due to a bad mistake a few years ago on my part. I earn a good wage but will not be able to apply for a mortgage for about 3 years. Thus we have the money to pay off, but not just the acceptability level. I would never pay above RV, some sellers are deluded, but some are competitive.

What was the mistake? IVA or bankrupt?

[TeaAndToast]

2buyornot2buy, on 28 December 2012 - 06:56 PM, said:

What was the mistake? IVA or bankrupt?

Not sure what IVA is but not bankrupt. Basically got a red strike when I finished university some 3 years ago. Stays on record for 6.

[Shotoflight]

Co ownership is de facto government sponsored and promoted sub prime lending. You must prove you cannot afford the house before you can be accepted. Available up to £175k, with current average sale prices at £94k.

Do you see yourself with your present girlfriend, on whose credit rating you rely, for the next 25 yrs? Have you agreed who gets and pays what if it doesn't work out?

Will you both be in paid employment for 25 yrs?

Will you have kids and good health?

Difficult questions only you can answer, not very romantic and would also apply to 'mainstream' mortgage lending but the more you stretch, the more important these questions become - nevermind prices, interest rates and the economy.

I don't have the answers - it may work for some and could be manipulated to suit circumstances (like IO mortgages for those that can work them to their advantage) perhaps, especially, if private rents are high and social housing non existant. Obviously thousands have taken up the offer over the years though the crash may cause particular difficulties in a scheme like this

I won't put you off - just make sure you go in with your eyes open. Hope it works out for you - let us know.

This post has been edited by Shotoflight: 28 December 2012 - 07:30 PM

[TeaAndToast]

Shotoflight, on 28 December 2012 - 07:29 PM, said:

Co ownership is de facto government sponsored and promoted sub prime lending. You must prove you cannot afford the house before you can be accepted. Available up to £175k, with current average sale prices at £94k.

Do you see yourself with your present girlfriend, on whose credit rating you rely, for the next 25 yrs? Have you agreed who gets and pays what if it doesn't work out?

Will you both be in paid employment for 25 yrs?

Will you have kids and good health?

Difficult questions only you can answer, not very romantic and would also apply to 'mainstream' mortgage lending but the more you stretch, the more important these questions become - nevermind prices, interest rates and the economy.

I don't have the answers - it may work for some and could be manipulated to suit circumstances (like IO mortgages for those that can work them to their advantage) perhaps, especially, if private rents are high and social housing non existant. Obviously thousands have taken up the offer over the years though the crash may cause particular difficulties in a scheme like this

I won't put you off - just make sure you go in with your eyes open. Hope it works out for you - let us know.

Been going together a long time. Both work in health with no expectations of closure. Both will pay 50/50 e.g. house costs £400, so we would put £300 each in per month, saving the rest for stepping up. Kids or health, who knows. But paying £300 each per month would not stretch us. We don't live a lavish lifestyle to be honest.

[Guest_Belfast Fubar_*]

TeaAndToast, on 28 December 2012 - 07:58 PM, said:

Been going together a long time. Both work in health with no expectations of closure. Both will pay 50/50 e.g. house costs £400, so we would put £300 each in per month, saving the rest for stepping up. Kids or health, who knows. But paying £300 each per month would not stretch us. We don't live a lavish lifestyle to be honest.

I'm confused. Why, in your situation, would you not find somewhere to rent until you can buy a whole house rather than just rushing ahead to buy part of one now whilst house prices are still falling? Doesn't make any sense.

Example- rent for £450, save the remaining £150 pcm. House prices will fall by around £5 - £10 K this year in your price range which covers your rent plus a bit.

It is beyond me why you would rent part of a house. Just wait a bit and buy when you can.