Saturday, Oct 03, 2009
Bonkers Desparation: 25% Shared Equity !
Propertyfinder.com: 25% Shared Ownership Scheme
Has anyone ever seen anything like this before ?
I've seen 75% and 50% shared ownership but 25% !
Who carries the loss if properties drop 10% ?
Posted by tenyearstogetmymoneyback @ 09:21 PM (768 views) Add Comment
8 Comments
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1. bystander said...
.............is the 52K the 25% or the whole price for the flat? If this is 25% of the retail price for a two bed in Bournemouth that means that this flat would be about 210K with 100% ownership - have prices actually fallen at all, anywhere??
2. Swissnic said...
So basically - this is like renting, but with a 25 year contract, and a landlord that has you over a barrel when it comes to rent review time...
Hmmmm - i dont think so!
3. Mantler said...
I have just - thankfully - exchanged contracts on my shared ownership flat. I sold my 25% share. I'll rent for a little while.
The 75% was subsidised rent, but coupled with the mortgage it's the same price as renting privately.
It's the worst of renting and owning at the same time really. You get regular patronising letters from the "Landlord" at the same time as getting mortgage statements.
Moving out costs all the usual fees, time and stress of selling, plus you're dealing with the Housing Association's solicitors and staff that you also have to pay for. You can't really make money out of a small share, and staircasing to 100% is pointless because you can't get rid of the outrageous service charges. Basically, you're better off renting.
4. vacuouspolitician said...
25% Shared Ownership scheme has been around for some time and yes it is 52K of 208K.
5. jonb said...
25% shared ownership schemes have been around for a while. If the price fell 10%, you would lose 10% on the 25% you own, and the housing association would lose 10% on their 75% share.
Given that this is being sold for about double it real value, you would be very lucky if you only lost 10%. Other things to look out for - very few lenders do shared ownership mortgages, and the rates tend to be higher, particularly so after Dunfermline went down, and you have rent and service charges to pay for on top of the mortgage. If they end up being more than what you would pay in rent for such a place, your share ends up being worth nothing, or possibly even being a liability.
6. tenyearstogetmymoneyback said...
Thanks for the answer jonb
I don't think this is housing association. The reason I commented on it is that I walked past the building yesterday
(its on the site of the old C&As - a perfectly good late sixties retail / office building on a slightly unfortunate site
as it was over a busy road from the pedestrain precinct.
Agree that the price seems high. A couple of minutes searching found this
2 bedroom flat for sale
Hartley Down, Bournemouth, Dorset, BH13PJ
£159,950
House & Son are pleased to offer for sale this well presented two bedroom purpose built apartment within Hartley Down, a purpose built development of 54 apartments over 8 floors. The accommodation comprises entrance hall, lounge/dining room, kitchen, two bedrooms and bathroom. Additional benefits...
More details, 9 photos and brochure Save property Contact agent
Marketed by House & Son, Bournemouth. Telephone: 0845 305 4478 (BT 4p/min)
Not sure of the location though and whether it is one of the "luxury" versions :-)
7. tenyearstogetmymoneyback said...
Thanks for the answer jonb
I don't think this is housing association. The reason I commented on it is that I walked past the building yesterday
(its on the site of the old C&As - a perfectly good late sixties retail / office building on a slightly unfortunate site
as it was over a busy road from the pedestrain precinct.
Agree that the price seems high. A couple of minutes searching found this
2 bedroom flat for sale
Hartley Down, Bournemouth, Dorset, BH13PJ
£159,950
House & Son are pleased to offer for sale this well presented two bedroom purpose built apartment within Hartley Down, a purpose built development of 54 apartments over 8 floors. The accommodation comprises entrance hall, lounge/dining room, kitchen, two bedrooms and bathroom. Additional benefits...
More details, 9 photos and brochure Save property Contact agent
Marketed by House & Son, Bournemouth. Telephone: 0845 305 4478 (BT 4p/min)
Not sure of the location though and whether it is one of the "luxury" versions :-)
8. Crunchy said...
3. jonb said...
Spot on!!!