djchewmacca Posted October 1, 2005 Share Posted October 1, 2005 I've been looking into these Shared Ownership schemes from Nomad Housing which are supposed to help first time buyers to get onto the property ladder. This particular one is for the new development at Mandale Estate in Thornaby. Anyway I got the information pack this morning and initially they are building 10 three bedroom semi detached houses which are going for £120,000. (VERY, VERY EXPENSIVE!!!) What you do is you buy 50% of the property which would be £60,000 and pay £150 a month rent. I've worked out you would roughly pay around £350 a month on a £60k mortage adding the £150 month for rent would take it right upto £500 per month. All I want to know is how are 2 people with a child supposed to afford this? Our joint income would be about £22k a year and the most a bank would lend us is £60k and that is really pushing our limits. You could get a £75k mortgage for about £500 a month, so you may as well do that. I don't understand it. The government say they want to help first time buyers. I don't think this is helping at all unless you are a first time buyer who has a decent income who would like a £120k property for the equivalent of a £75k property. This scheme is not helping anyone who only earns a basic wage. Quote Link to comment Share on other sites More sharing options...
Guest Posted October 1, 2005 Share Posted October 1, 2005 As a potential FTB, my take on this is: This 'shared ownership' gets you a house / flat. It's a desperation move. What the hell are you supposed to do next? Spend the rest of your life working your way up the ladder on shared ownership schemes??? Same if you buy with a mate. When you come to move up, you've got less equity built up cos you only bought a share in the first place. Not a solution in my book. Quote Link to comment Share on other sites More sharing options...
djchewmacca Posted October 1, 2005 Author Share Posted October 1, 2005 As a potential FTB, my take on this is: This 'shared ownership' gets you a house / flat. It's a desperation move.What the hell are you supposed to do next? Spend the rest of your life working your way up the ladder on shared ownership schemes??? Same if you buy with a mate. When you come to move up, you've got less equity built up cos you only bought a share in the first place. Not a solution in my book. That's exactly what I was thinking. Quote Link to comment Share on other sites More sharing options...
OLDFTB Posted October 1, 2005 Share Posted October 1, 2005 Also what happens if the value falls. Does that mean your share is worth less? But can you then increase your share by buying extra at a cheaper price because the value of the other partys share has fallen? Quote Link to comment Share on other sites More sharing options...
djchewmacca Posted October 1, 2005 Author Share Posted October 1, 2005 Also what happens if the value falls. Does that mean your share is worth less?But can you then increase your share by buying extra at a cheaper price because the value of the other partys share has fallen? I bet they'll be some sort of catch if this was the case. I can't imagine they would want to sell you their share if the value of the property came down. They would sooner have you renting. It's something to look into though. May want to check any small print on anything you commit to. Quote Link to comment Share on other sites More sharing options...
djchewmacca Posted October 1, 2005 Author Share Posted October 1, 2005 (edited) I've included the letter I received this morning from Nomad Homes in this attachment. It has all the FAQ's and important information etc... Nomad_Housing_FAQ.zip Nomad_Housing_FAQ.zip Edited October 1, 2005 by djchewmacca Quote Link to comment Share on other sites More sharing options...
right_freds_dead Posted October 1, 2005 Share Posted October 1, 2005 it is a pile of total crap. keep well clear. the values of these homes could half and you'll be left owing someone 80k for no reason at all. Quote Link to comment Share on other sites More sharing options...
theChuz Posted October 1, 2005 Share Posted October 1, 2005 Its one of the desperation measures to try and keep things afloat, if the average couple cant buy the average Ftb''r place on a average salary then the average price is wrong. Shared ownership - you own half you house + all maintaniance costs etc, but you pay rent on the half you dont own... hows about get f*cked. Quote Link to comment Share on other sites More sharing options...
djchewmacca Posted October 1, 2005 Author Share Posted October 1, 2005 I've included the letter I received this morning from Nomad Homes in this attachment.It has all the FAQ's and important information etc... Check out page 2 of the 'Nomad Housing FAQ.zip' where it says... Q. How much will the rent be increased by? You could get yourself into this scheme and find in a couple of years totally out of pocket because you may be paying loads in rent along with a 60k mortgage. Quote Link to comment Share on other sites More sharing options...
Pluto Posted October 1, 2005 Share Posted October 1, 2005 Shared ownerships is sh.it. Don't bother with this VI abortion. It's just another FTB trap. You get to pay rent and a mortgage and do all the repairs pay all the insurance. What a deal...and you also get wacked when the prices go pear shape. Stay away from them. Reminds me of the endowment mortgages of the 80's. Yep..another great deal at the time. Quote Link to comment Share on other sites More sharing options...
andy_wants_a_home Posted October 1, 2005 Share Posted October 1, 2005 As a potential FTB, my take on this is: This 'shared ownership' gets you a house / flat. It's a desperation move.What the hell are you supposed to do next? Spend the rest of your life working your way up the ladder on shared ownership schemes??? Same if you buy with a mate. When you come to move up, you've got less equity built up cos you only bought a share in the first place. Not a solution in my book. My view too, it should NEVER NEVER EVER have come to this Thanks to the inaction of this utterly useless government who care not for struggling FTBs Thankyou very much Tony Blair and Goon Brown. Waht next Multiple shared ownerships. Quote Link to comment Share on other sites More sharing options...
SarahBell Posted October 1, 2005 Share Posted October 1, 2005 What the hell are you supposed to do next? Spend the rest of your life working your way up the ladder on shared ownership schemes??? No! Because you're only allowed one shared ownership scheme. Most won't let up upgrade to a bigger place so you'll be stuck with a tiny flat that you only own half of, and all the problems that entails. Quote Link to comment Share on other sites More sharing options...
teddyboy Posted October 1, 2005 Share Posted October 1, 2005 Love the way it is worded "Prices can go down and up. So you could pay MORE to buy extra shares. You may be forced to SELL at less than what you paid initially. SOunds to me that they are on a win-win and the buyer is on Lose-Lose! Not only are you paying a Mortgage AND rent you also pay a SERVICE CHARGE!!! The even keep it at £120,000 instead of £119,950 so you have to pay £1,200 Stamp Duty! ABSOLUTE RIP OFF!! Stay well clear! Quote Link to comment Share on other sites More sharing options...
Warwickshire Lad Posted October 1, 2005 Share Posted October 1, 2005 Shared ownership is utter BS and shame on websites like FirstRungNow for promoting it. Quote Link to comment Share on other sites More sharing options...
right_freds_dead Posted October 1, 2005 Share Posted October 1, 2005 ..and john prescott Quote Link to comment Share on other sites More sharing options...
Mushroom Posted October 1, 2005 Share Posted October 1, 2005 ..and john prescott Socialism personified. If alive today, I'm sure a certain Mr. G. Orwell would look at our Johny and think, "I got it right". Quote Link to comment Share on other sites More sharing options...
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