A shared ownership in central London

[godnose]

Am I mad to even consider this?

https://www.zoopla.co.uk/for-sale/details/63388939/

I have a deposit of about £250,000. The rent on the other 75% is very low. The service charge does raise my eyebrows a bit.

I know a lot of people hate on London. But for me this is almost ideal. It is very spaceous. I won't outgrow it (no family plans) and it affords a lot of privacy. The Mews-style is quite pleasant.

Thoughts welcome.

[sexton]

How much, including lost interest, a month in total?

Can they chuck you out and leave you penniless if you miss a payment?

[godnose]

2 hours ago, sexton said:

How much, including lost interest, a month in total?

Can they chuck you out and leave you penniless if you miss a payment?

Well, £920 pm + mortgage + bills. Which I think woiuld be manageable. I'd get a lodger in for around £950 per month all in (would double check it's permitted, it usually is).

Interest lost is an interesting thought 👍 at the mement I get a rather modest £150 per month max (premium bonds in there so it fluctuates).

So that's £1070 + mortgage and + bills. And minus £950 with a lodger.

I currently pay £850 per month in rent + bills.

The point for me is also that £1.2 million total value... Shared ownerships are priced on the market rate, but it's kind of a fiction, because they cannot be used for buy-to-let, and the market is priced to accommodate buy-to-let. So effectively, you get worst of both worlds; priced with buy-to-let potential in mind, but you cannot let it out.

Looking nearby I think this property tells me that the £1.2 million price is ambitious: https://www.zoopla.co.uk/for-sale/details/62864045/

The high price tag can obviously be easier supported by finding a buyer who only has to cover 25% of the cost though (it's a prop to the housing market of course).

I doubt they can kick you out penniless. If you fall behind, they would put the property on the market, give you back your share, deducting any costs due.