You need to think strategically and understand what you really want to achieve in my point of view. With the shareownership scheme, it is a great way to get on the property ladder. You either in it for the short term, or you are in for the 100% ownership. Selling a 65% share property especially to someone who is highly going to be a first time buyer would be difficult as it is a no brainer if your next door neighbour has the same property as you at a cheaper price because of the lower % in shareownership. If you are looking at shareownership for the short term, you would keep the % of your share low max of 40%. Wait till you value of share gets greater then exit. I see comments in this thread making out this scheme is a scam, pleeeease don't dis it until you do your homework. Always remember, no matter what scheme you choose in relation to the help to buy scheme or even a normal mortgage, YOU DON'T OWN THE PROPERTY UNTIL YOU PAY YOUR MORTGAGE COMPLETELY!
@ Nick Exactly! Totally agree with you! There is always a risk when you buy a property- whether it is shared ownership, help to buy or a full on mortgage. People need to do their own informed research, read the paper work/ terms and conditions before signing contracts that bind them legally so that you are fully prepared of the risks and are not blindsided in any way.
Correct, you don't own the property when you have a traditional mortgage. However, you are not expected to pay rent in addition to your repayments. There are also a lot more restrictions when it comes to shared ownership, as Alex mentioned you are not allowed rent, some do not even allow pets. I personally agree that is a poor product that was created to give the illusion of being a homeowner.
Very well said, especially in the economy for most, shared ownership is great to get on the property ladder. There are cons to everything, but at least this gives people the security of having their own home.
The fact that the government allows such systems to exist is shocking, the developers are profiteering simples ! so much of UK property law and practice is exploitative and allows lawyers and certain others to make easy money
Awesome video. I have always been against shared ownership properties. Seems like a trap to me. I opted to move out of london and but a house out right as it was much cheaper and straightforward. Wouldn't recommend shared ownership to anyone
@@dukewilliam3660 it's been a great experience. I've started sharing our experience on my channel which focuses of property, personal finance and DIY. We hope to upload a sit down style interview video between my wife and I, showing and sharing our experience of moving. I hope this will show others, especially young families that it's totally possible. We only just got back from London and we make it work by visiting often (covid aside) We are looking to buy a second property in just 2 😅. I share this to say, be encouraged folks 😊
I bought a shared ownership house years ago and sold it after stair-casing to 100% with some redundancy money. I didn't do any research at the time so was lucky it worked out well. The main attraction for me was getting somewhere that I could put a cat flap in the front door and adopt a couple of rescue kittens!😺😺 All I thought about was cats!! 😺😺
You explained everything so well, thank you. I have a 3 bed semi detached shared ownership house and own 50%. Luckily we live in quite a nice sought after area. This video has really helped me consider whether to buy the full share before deciding to sell further down the line. The main drawback of ours is the garden is so small otherwise we would liked to have extended it (even with just a conservatory). We have an open plan space downstairs and no separate room incase we want to have a family. So many things to weigh up! I didn’t realise that the housing association relisted the house for sale at the share that the previous tenant purchased, I thought they could decide what share to sell it at. I will have to look into it further. Many thanks again 🙏
After speaking to a friend I've decided to give up on owning my property and getting into shared ownership. I feel people and society especially social media make it seem easy to own and buy property from say early 20s, yet its far from the truth. I'd libe to own my home but I've decided to not put pressure on myself if I don't. As a 34yr old mum of 1 work 5days a week pays childcare(before covid) and rent etc no benefits, it's hard and I'm ok with not owning. All this I bought my house at 23 or 25 videos I see, are great if u can but I'm done unless I move to say Newcastle or something.
Hey Elana, yes 100% agree! There really is pressure from society to get on the housing ladder which is also a very British thing as I have friends in the US and Europe where people choose to rent rather than buy unless it’s for an investment. At the end of the day you know more than anyone what’s right for you and your family and as you’ve said, that comes first before society’s opinions and pressures. Keep doing you!
@@gemma8611 lol me too! Pre-covid I stopped going out with friends and was just sitting home saving. Then covid came and said: ok, now you can sit home whole 1 year! I regret it so much haha how stupid was it, lets live life
@@jmusic2024 yep! Just save a certain amount each time payday comes but don't get too obsessed. That's the key. Got to find a balance. It's great to have goals but it's not worth being completely miserable in the process!
I am tired of paying rent for bad places to live. It sounds stressful but landlords are too. That money I have paid in rent is gone all of it. But it is nice to know there is something there in hold for you. What I've learnt from your video is about the percentage, I didn't like to own only 25% or 30% but you are right that is easier to sell. Thank you for sharing your experience
Thank you very helpful. I had same experience HAs take no responsibility for any works pests, boiler etc. However, if u want to do any improvements, u have to ask permission, plus pay fees. Its really a rubbish way of getting on the property ladder.
I just learned of this "new" practice of shared ownership: after wondering how people could "afford" all of the new-builds in my neighborhood, city, and state. This video is very good in explaining the complexities of unloading a shared property. Much thanks.
This was really informative, thanks for sharing your journey! Some people have told me to look into shared ownership instead of renting but I think your point at the end is extremely important, with renting you are not liable for any leaks, boiler breakdowns etc and that stuff can be hella expensive! I hope to get onto the property ladder next year but most likely an investment property (buy-to-let). I personally like the flexibility of renting right now despite the pressures of society that it is 'dead money'.
Such a helpful explanation of things, explaining via your own story made it easier too. Oh wow THREE solicitors, eesh complicated! Extra costs explained really helpful. Glad it all worked out - enjoy your new home 🏡😊
Thanks for your helpful video. I'll be watching this again when it comes to selling my shared ownership property. Definitely not looking forward to the convoluted process!
Thank you so much for your video. It’s been really helpful! 🙂 I can definitely relate to you so much! I am 33 and looking into Shared Ownership to buy a 25-30% share preferably a one bed because the help to buy scheme and the new government’s 95% mortgage scheme is still not affordable for me if buying alone- these schemes are great if you are buying with a partner or friend though. Therefore, I feel like shared ownership is my only option as I am not eligible for social housing because my salary is considered too high and therefore not a priority. I am done wasting my money on private renting which is why I moved back home to my parents to continue saving. I think Shared ownership is good if you want a place of your own and and somewhere secure to live instead of paying off the landlord’s mortgage. I have also subscribed to your channel too! There is a new version of the shared ownership scheme that was announced by the government- you can buy smaller shares, you can staircase in 1% increments and they offer to cover household repairs for new shared ownership buyers. Here is the link to article on the Shared Ownership website: www.sharetobuy.com/news/government-changes-to-shared-ownership-scheme/
No scheme offered by the Government is a good scheme, all benefit the Government in one way or another. Until you can afford to buy with a good deposit, and suitable monthly payments you must either live with family to save super fast or rent (but can't be in London, since you won't save anything... means extra transport costs to work, and extra travel time) but if you're renting without saving or saving very little then you'll be stuck long term unless you're in the process of getting a substantial promotion or payrise.
My advice buying such a small percent is the cost of staircasing is too costly and not to go with shaded ownership as a scheme. You pay for your surveyor and theirs, same for solicitors fees. I understand that there's a fee with newer shared ownership schemes with every staircasing. So that's A LOT of fees for that many staircases.
Completely agree with you. I think most everyone are thinking the video finishes in a negative note, but even in her negative conclusion I still see the benefits of it, her case was stressful and the pandemic didn't help her neither. The option for many of us is doing the share ownership or keep paying rent to private landlords.
@@davidromero1549 You make a very good point 👍🏾. I have just completed my shared ownership purchase and qualified for a 40% share and hope to staircase to 100% in the next three years- I have worked out a savings plan that will help me achieve this on my current salary. I lived at home with parents for the past year and a half and was able to save a lot of money which I am grateful for but still not enough to buy on the open market. Therefore, shared ownership was the best option for me and I have many positive stories about this scheme from work colleagues and family members so it’s not all bad ! I think it also depends on the location of your Shared Ownership property, financial climate (i.e. COVID) and ability to staircase at a faster rate due to salary and current savings. My mortgage, rent and service charge are well under £900 per month and SIGNIFICANTLY more affordable than renting privately (can’t believe how much money I wasted for three years before moving back home with parents !). I know that the rent portion and service charge can rise or decrease each year but they explain all that when you buy a shared ownership property so it’s important to budget for that - so there are no surprises along the way. I now have a secure place to live as long as I pay my bills on time and do not fear shady landlords trying to increase the rent extortionately or having the power to kick me out when they want to sell or renovate 🤗. Furthermore, I know of people who were able to sell their shared ownership properties with no problems as they bought in good locations, decent Housing Association and their properties were built well and had great amenities - they have used their equity from their sale to buy on the open market which they wouldn’t be able to do without shared ownership. It’s not for everyone but it works for some 😬. Even if you buy on the open market- you still need a mortgage and the property doesn’t really belong to you unless you pay the mortgage off in full and bought a freehold property - if you miss a mortgage payment you are at risk of your home being repossessed. Furthermore, if you fall on hard times you can claim housing benefit for the rent and sometimes service charge portion when you have a shared ownership property which is something I didn’t know before my mortgage broker, solicitor and housing association sales advisor explained to me. However, if you have a full on mortgage you are basically on your own and can’t really access much help. I am glad the government have made changes (albeit small) to the shared ownership scheme and I hope they continue to do so 😊
Thank you I think you saved me from future problems! For last few days I was checking some SO properties... but it is not worth for the hassle, what I "save" by building up equity I think it will go to fees, fees, feees, maintenance, repairs and more fees. Will rent few more years. This scheme should be revamped.
I always wondered how shared ownership properties are sold - say if you want to move somewhere else - the scheme probably bets against this and instead is aimed at people who will be less likely to move within 10 years for example - but you explained this very well. Also all these rules it does sound like they really don't want people to sell their properties.
Such a helpful video. I'm 3 years into my shared ownership property and I'm looking to sell. Unfortunately with all the issues surrounding the cladding I'm going to have to wait for it to be rectified before selling 😫 thanks for a little insight of your experience. Glad to know im not the only one who wouldn't buy a s/o flat again!!!! Xx
Ahhhh I’m so sorry to hear about the issues with cladding 😩 It’s so frustrating! And so annoying because you wouldn’t have known about it it when you bought the flat 😞 I really hope it doesn’t take that long to be sorted. With so many people experiencing issues, hopefully the government realises and takes some action rather than it being kept in limbo as to who should bear the costs 😒 xx
@@Alexandrasblog_ thank you for this, all leaseholders in my building have sent the email to the local MPs. Hopefully something positive comes from this. Its honestly been such a nightmare and like you said we have to deal with all issues that occurs within the flats. I've had several leaks across the 3 years (touch wood they've all been fixed) - but everything is so costly and the Housing Association do the bare minimum to support you. Anyways. Thanks again for the video. Have a lovely weekend x
Ladies, who are your HA's? I'm chasing a EWS1 form and it's coming up to a year now. It's super frustrating. I'd hoped the new clarifications with RICS on the 5th Apr was going to change the situation, doesn't seem to be the case.
@@ahms8689 that’s so frustrating! I’m sorry to hear that. I had a friend who was literally in the same position. He was buying the one buying the property but couldn’t because his sellers couldn’t get the EWS1. He waited for almost a year. My HA was L&Q
Really interesting to hear your experience of selling, as I've only spoken to those who own through SA, so they haven't gone through the entire process. It's good to see how it works if the value is lower than the price you paid. It's definitely not a great scheme, but I think maybe it's (ever so slightly) better than help to buy. With help to buy, the size of the loan increases when the value of the property increases and that is just not okay! At least with shared ownership, if you manage to sell at the valuation amount, you're not having to pay out extra money. I definitely think it's better to move further out and buy something you can afford without using SA/HTB, it's a better investment in the long run! Congrats on managing to sell and congrats on the new home.
Very interesting! It definitely varies from HA to HA though. In my experience, my HA sold mine - I told them I wanted to sell and it all went through them!
I wrote a comment on self invested too. Thank you for sharing your story because they make everything seem simple and reasonably priced. Sorry for your experience but so kind of you to share your experience. X
Excellent video , really well explained . I am looking at a 25% shared ownership property in London , I am late 50’s and on my own. It’s the only way I could afford to buy in London so no choice . I’m pleased that you sold in the end . I’m concerned on cladding and escalating service charge payments and escalating ground rent .
Hey there, glad you found the video helpful 😊 and yes I can see why that would be a concern. Re the cladding this is something that would/ should come up on the survey for when you are looking to buy the property, so it should come up as part of the surveyor report and in regards to the ground rent/ service charge this is something you could pick up with the housing association prior to buying to get an idea of how much increases could be in a year on year basis. I think there are also some instances now were ground rent might even be scrapped.
@@Alexandrasblog_ thanks Alexandra , I am actually a Chartered Surveyor , lost the family home via a divorce. Just feel a need a place of my own rather then paying 1250 per month in rent in Teddington . Really good advice as regards the potential escalation in ground rent and service charge and getting prior clarification in writing from the housing association . Thanks also on the cladding aspect , you hear about so many people in impossible situations in this regard don’t you . Much appreciated.
@@normhanson981 sorry to hear you’re having to start again. This can’t be easy. And I really understand on not wanting to rent anymore. Rent really is extortionate in the UK. And yeah like I said I would really encourage you to ask as many questions as possible in the process even if that means speaking to fellow neighbours before you purchase to find out how they’ve been getting on/ the dealings they’ve had with the housing association and whether they’ve experienced any crazy rent/ ground rent spikes. Sometimes it helps just to hear it directly from others. Wishing you all the best in this next phase and really hope it all works out for you 😊
Great video and details . Very honest and good explanation. Thanks a lot. You probably save me from this craziness it’s sounds like a scam. I heard lots of stories about this program and they all very similar to yours.
Very insightful thank you. I was contemplating getting a shared ownership to get out my mum's gaff but if that's the only benefit, then I might as well wait 2 more years till I can buy outright.
Thanks so much for this video! I have been struggling to find a video of someone explaining how they sold their Shared Ownership property, yours was very helpful 👍🏾👍🏾 I'm contemplating buying a 25% share in a flat but the many conditions around selling are just too restrictive! 😟
Hey, glad you found this helpful! I know, there are a lot of restrictions, however this was also what I experienced as part of my selling process and not all of these restrictions may apply with the housing association that you are intending to purchase your shared ownership property with. I would advise that you think about the main concerns that you have based on some of your own research and what I’ve spoken about in this video and raise it with whichever housing association you are thinking of purchasing with. Ask them to go through all of the conditions and restrictions that would be applicable and then you can weigh up whether it will work for you.
@@Alexandrasblog_ yes, I'm expecting the contract paperwork from the seller any day now so I'll be able to scrutinise it with my solicitor. Thanks again 😊
Girl you are right. I’m selling my shared ownership flat right now and so far it’s okay but would I do it again? Nope! I did research before I bought so I knew this would all happen. I think that’s why it’s going so well 😅
@@Alexandrasblog_ don't get me wrong - even knowing what I knew, and the next person has this wonderful video (thank you for it!) to help them know ahead, it is still more stressful than I anticipated. All a bit of a pain, with all the knowledge in the world! So happy for you you're out the other side!!
Great video, really clear and sound advice, glad you managed to get out of it! I don’t think shared ownership solves the housing issue or provide value to those struggle to afford houses to be honest, instead it exploits the wealth of those who don’t have much of it which is ironic. People’s wages are clearly not high enough to match the house prices, only way to fairly fix it is raising the minimum wage, but the gap is so wide now, government really failed on this.
WE NEED MORE AWARENESS ON THE POSSIBLE ISSUES AROUND SHARED OWNERSIP. IT IS NOT FOR EVERYBODY! IT IS ALSO VERY DIFFICULT TO GET A SHARED OWNERSHIP ON FREEHOLD!
This is very informative, I've been researching into shared ownership, but I feel like the more I research the more put off by the whole scheme I become
Yeah I think a lot of people are after looking into it. I do however have some friends who it’s really worked out for and who haven’t encountered any issues. It’s always good to have a good idea and understanding of the risks though, so you can know what you’re getting into.
Thank you for your video, I live in a little 2 bedroom mid terrace S/O having got fed up with landlords selling from under me. I was considering staircasing and buying the whole property so I could own it all. Having watched your video I then realised that the people that may want to buy it may only be able to afford the 25% deposit like I had. Its also in a terrace of other S/O. So if I staircase to 100% it could prevent me from selling it easily.
Hey! So the issue that I had was owning a higher percentage but still not owning the full 100%. So because I didn’t own 100% I had to try and sell and the share that I owned first and that’s where the difficulty came. Because most people doing S/O couldn’t afford my %, however if you own the house outright by stair casing to 100% then it’s no longer S/O and when it comes to selling you’ll just sell on the open market. Does that make sense?
Shared ownership is a con - all the down sides of owning a property i.e paying for anything that breaks with all the restrictions of renting i.e subletting
Hey, really glad you found this helpful! Unfortunately I haven’t had any experience with the buying or selling process of HTB so wouldn’t be able to provide any useful info x
Share ownership can be great if you can't buy 100% however you should be careful into buying " new build" as they are overpriced so hard to make a profit ( unless you keep it for 10 years plus l guess)...l bought mine at 28 many years ago and was a great choice...now l will pocket more than£ 50.000
I have been considering shared ownership. And recently went to view a house, I would say it was too expensive! Also they said it was a 3 bedrooms but I see it more as a two bedrooms. The third bedroom was so narrow. The other two where also so small I wonder where wardrobes will even go! And worst of all, downstairs was an open plan with really small area reserved for "living room"... The only good part of the house is that the garden was big enough.... I feel like they knew these houses will be sold on shared ownership thus buyer will not be so picky and because they just want to get to the housing market will happily accept it as it is... However, I feel that if the house was big enough, I would have considered it as I wanted to get then save from day one to then get 100% in the future
Thanks for this video. Very informative. I'm also selling my shared ownership flat and agree it is a nightmare but luckily I have a buyer. Did you have any issues with paying Stamp Duty when doing the staircase and sale? Thanks
Hey, glad to hear you have a buyer! No I didn't but i can't remember if it was because I opted to pay the full stamp duty when I bought which then meant I was exempt from having to pay again (it was only £500 so was woeth paying it at the start) if I decided to staircase or because my property fell below the stamp duty threshold.
Found this video really helpful. Would love to see what a breakdown of the cost of selling looks like. Did you breakeven or make a profit/loss after selling?
@@Alexandrasblog_ I'm really happy you shared it because it's made me reassess how I want to buy myself. I think I'll go back to my dreams of cabins in the woods and vanlife 😂 London & Shared Ownership is too wild!
Most Gov schemes are a real tangle, on purpose. It's a shame you did not find out all about 'what happens when I want to sell?' BEFORE you entered into this mess. One thing I did not know, and as you say, so very unfair, is that you are responsible totally for the maintenance of the property even though you pay rent to the HA - they got you by the proverbial every step of the way.
Hi Alexandra glad to see your in your property. Can I please ask how long did the entire process take? Unfortunately the Housing Association is not so great. The RCIS Surveyor you advised was very good. We are just waiting to confirm something with the Housing Association who are dragging their heels. I am praying and leaving it to God. I am hoping that the property will be put on the open market as according to the Surveyor he believes that's what going to happen. I am praying.
Hey, glad the surveyor was a good choice for you! So I actually started the process in August 2019 and because of the HA being unable to sell it, plus COVID, plus people saying the price was too high I didn’t get an offer until July 2020 and then I completed in November 2020.
Hi - Thanks for this video extremely useful can I ask how it worked when you said your property went down in value? As far as I remember from the video you said the original value was £305k, the property was originally valued at £320k and then after the valuation expired it went down to £292k, if that is the case your responsible for anything below the original value didn’t you owe the housing association 13k? Super useful if I could pick your brain on how that works as it seems like the property depreciated and actually had negative equity? Could you advise if this is typical and what caused it to go down and the ways you could combat a low ball valuation?
Hi there! So you have to pay the housing association if you sell below the market valuation. I can’t remember exactly what I sold it for but I think it was £295K and so as it was valued at £292k I got to keep the £3k. I think anyway I can’t remember tbh. But that’s how it works anyway. And no there wasn’t negative equity as I only owned 65% and so my original mortgage was for $188k and the 35% I paid rent on. I hope this makes sense but let me know if not!
@@Alexandrasblog_ thanks so much you’re video was super eye opening, could I also ask if you think staircasing up to a lower amount would help to allow the property to sell easier? Of course as you mentioned the HA makes you take your maximum affordability but let’s assume someone’s maximum affordability was 40% would you recommend stay at your initial share and not stair case intentionally to assist with an easier exit? I can see this might mean lower equity growth but is it a risk worth taking? Grateful for your time and thoughts, thanks again for getting back on this!
@@samiulislam5918so my next door neighbour who had a one bedroom had a 25% share and was able to sell her flat pretty quickly. The 65% made it hard selling it another person looking for shared ownership as a lot of people couldn’t afford 65% I think that’s why I ended up having to sell it on the open market. I can’t advise whether it would be easier or harder to sell a lower amount but in my opinion I do think it plays a factor
I heard about this and it was offered to me but I was advised against it by a colleague. A friend who went ahead with his shared ownership purchase thoroughly regretted it. He never lived in the property due to problem neighbours. Devastation all round.
Hi This video is very helpful as I want to sell my property at the moment. Sounds very stressful and I that's something one can do without especially at this time. Can I ask did you paint or do any decorating works to your property, before getting valued ect?
Hey, glad you found it helpful! No I didn’t do anything to my property beforehand. Tbh before the pandemic I was hardly in my flat as I was either working or travelling so it was basically kept pretty much brand new so I didn’t see it necessary to do anything else
Hmm crazy, sounds like housing associations only benefit from owning the share without suffering the consequences. If you bought it for 305k and sold it for 292k, did you have to pay the difference to the housing association? I read somewhere that the tenant would be liable for the difference if the property value drops.
Yes you are correct, there is a difference to pay. Fortunately for me my property dropped in value and was valued at £290K so I was able to accept the £292K offer
Oh no! I thought you could sub-let under shared ownership (for me, that was one of the pros). Is this a hard and fast rule, or does it depend on your contract, the housing association you're with, etc.? Thanks for this video. Really insightful :)
Hey, so I had thought it was a hard and fast rule as including for myself and my lease none of my other friends who have done S/O have been able to - but someone commented on this video that they had been able to, so it would be worth checking with the housing association beforehand
Thank you for this!! Total demystification! Ironic what you said about a 20k deposit, we had that much but our salaries are so low we couldn't afford a mortgage to even get a bloody garage in London 🤣 Yet to be seen if moving in Dec 2019 was a great idea or the worst idea... thanks covid 😂 Deffo would never do shared ownership again, but it was our only option as I needed to be in London (outskirts) for work. Typical now WFH has become a thing we could look further afield for cheaper full ownership 😂
@@PRINCESSGEMINI1987 Buy hey......now they can post a video on here and monitorise their ' struggle'. Housing Association' are the biggest criminals with their regenerating communities. They are housing developers plain and simple. They are businesses and they are in the business of making money! Anything with full backing of this government is definitely something not to trust! Simple.
Yes I renewed a lot in the property myself as the Housing Association didn't want to know. Alexandra I am stressed already and I am just starting the process. Lol
It’s ridiculously stressful I can’t lie, and there isn’t a way around that but to keep going until you get to the other side. If it makes you feel better, apparently it’s buying and selling a property, having a baby and getting married that are supposed to be the most stressful things you can do in life so you’re not alone!
The process you went through took so long. Glad you came through it in the end. I just hope and pray my process gets going as quick as possible. Thank you for your help x
Thanks Alex, very helpful, I came here from the self inv. video, I think I applied for a flat in the same building (noticed you mentioned your neighbor had sold 25% within a week easily, think I was one of the 4 applicants! - on the 4th floor!) I was offered the flat 1st but declined, do you know if were are many other 25% owners in that building/area, really regret turning it down & would not be staircasing so think it could work for me temporarily
Agree! It also doesn't help that society is obsessed with telling everyone to buy a home and to do it my any means necessary. It's also difficult knowing that our parents (baby boomers) were all able to purchase homes a lot easier than we are. I think people need to do what is right for them and if that is to rent until they can afford a 100% mortgage then so be it, but if some people choose to do it via shared ownership they shouldn't be penalized for that either (either by society or through hidden govt costs)
Would love to hear more about your experience with the ews1 process. What type of cladding and how many floors did your building have? Did your HA pay for it?
Hey! So thankfully my building didn’t have any cladding. It’s something I’m aware of as two of my friends who have bought new builds now have the issue. With one of my friends he and the rest of the tenants are clubbing together to foot the bill (I think they are getting some sort of deal). With the other one it’s still in limbo. I think it’s still being decided in parliament who will pay commonslibrary.parliament.uk/research-briefings/cbp-8244/
@@Alexandrasblog_ thanks. You’re so lucky we’re having to wait for our HA to complete an investigation of the external wall. The government ruled against a bill to protect leaseholders last month so as it stands anyone under 18m is paying.
The fact the government voted against a bill to protect leaseholders is actually insane and I guess really sheds further light on these schemes and how much they do not favour the owner whether shared or an outright owner. It’s so frustrating that their failure with Grenfell and then bringing in new building regulations to “sort the problem” is now affecting so many more people. I’m really sorry that you’re having to face this issue 😔
It’s not the choice for everyone however some people choose it as a way of getting on the property ladder even if it means owning a lesser percentage than what is rented. People can own anywhere from 25% to 75% and in some cases more. A few people have shared how they have been able to make money on their shared ownership properties. So I think it comes down to each individual case
Selling a property after one year is where she went wrong. That increases the risk of selling at a loss or zero gain. You should ideally hold for at least 5 years before selling especially if the market is not moving as fast as in prior periods
Hi Louise. Thanks for highlighting this. The purpose of this video was to shed light on the complications that I had through selling a shared ownership property and so people could be aware when purchasing theirs. It wasn’t about the property dropping in value. And yes you are correct, people should aim to hold for at least 5 years where they are able to do so.
Hey Alexandra just wanted to let you know that I advised the Housing Association that it would be best that I go on the open market. They have not done anything to this point and have had no viewings, so I made the suggestion that I would approach an Estate Agent. All the Housing Association has said is that they will take it off the market then. Did you have to send the Housing Association anything at this point? They said I can sell at 100%, even though my share of the property is 50%. The Housing Association have not said much to me.
So I had an 8 week nomination period which gave the HA time to sell. They weren’t able to get any offers so I was able to then sell on the open market. They were aware as it was the end of the 8 week nomination period. I think I may have sent them an email to confirm but tbh I can’t remember. As I was at the end of the period and that was the terms of my lease I wasn’t too fussed about getting any response from them and went ahead and and started the open market process. And yep on the open market you sell at 100% irrespective of your share. Essentially the buyer is buying from both you and the HA
@@Alexandrasblog_ I really appreciate your help as the process to me is not straightforward and not getting the advise from the Housing Association as I thought I would. My nomination period is not even up, but they have been doing nothing and to be honest, I only see it advertised in the Housing Associations website and that is it. So you pay the percentage of the sale to the Estate Agent then?
Yep you pay the estate agent a fee. Each estate agent will charge something different but it’s usually in the 1-1.5% range of the sale price. The terms of my lease meant I also had to pay my HA’s legal fees as well.
Hi Alexandra I do hope you don't mind me asking you questions about my shared ownership property and appreciate your help. I am getting there eventually as spoke with a nice young lady from Metropolitan who was so helpful and got things moving eventually. Going to have a ID interview on Monday with her and have made an appointment for their photographer to come around in the week to take pictures of the property. Once they do that, how long did it take for them to advertise your property? Do you actually get to see evidence where your property is advertised for sale? Also money paid back to the Housing Association once your property was sold, is at 1% of the amount that your property was valued?
Hey, no worries at all! So once the pictures were taken I had to send them to the HA to do the listing. They were extremely slow. The pictures were taken in august and the listing wasn’t up until the end of September. (My next door neighbour didn’t have this problem though). And yes once the listing was ready I think I was able to review the listing first. So because I sold 100% through the open market and not just my share I didn’t have to pay a fee to the HA. Instead I only had to pay their legal fees. If they had sold my share I would’ve had to pay them 1% and the 1% is based off the sale price. Let me know if you need any more info!
Thank you so much Alexandra. When you sell at 100% on the open market, do you have to sell up to the price of the evaluation? Can you sell for more? I do not want to get less than the evaluation price as I personally think it is still a little low. The lady I spoke with at Metropolitan said she would ask if I could sell my property at 100% as she said she doesn't see why not as that's what they use to do anyway. So hopefully I get to sell at 100% anyway. Can I ask, which Legal firm did you use? I am of course going to get 3 quotes as the legal fees I know are expensive, especially as I am here in London.
@@elaibesummers906 so I sold at the valuation price. I was told that I could sell above and keep the profit for myself, but I ended up selling at the price. I agreed with the estate agent what we would market the property at.
@@elaibesummers906 yeah you can do a price comparison for legal fees online and go with the best quote. The firm that I used was Berkeley Rowe - they wasn’t the cheapest though. I used them as my estate agent had a relationship with them and it was easier.
The whole process seems complicated and convoluted, did you still lose money with her shared ownership route (buying and later selling) compared to case if you had rented through out that period?
Yeah it was seriously complicated and very stressful. I think tbh it worked out roughly the same as my rent when I was renting and my rent and mortgage on my shared ownership place was pretty similar. If my flat hadn’t dropped so much in value then I would have got my deposit back so yeah that was the major negative.
@@Alexandrasblog_ hmm, sad to hear you had to go through this, doesn't you get back share of your deposit and the mortgage payments you already made when you sell (dependent on the price at time of selling), I thought this is already factored in your final calculation?
@@Alexandrasblog_ Apologies, I meant: (your initial deposit+mortgage+rent+selling costs) minus (what you got through sale) is greater than (your initial deposit + full rent through all this period) by (your initial deposit - £500), apologies again if I made it again too complicated
@@samrazakir sorry yes this is a bit complicated 😂 but I think I can see what you’re getting at. So in summary when I sold my flat because of all of the fees and the redemption charges to come out of my mortgage early I lost any equity that I could’ve got back and was £500 down on exit. If I had been renting then I would not have used the deposit that I saved to buy the flat but at the same time I wouldn’t have added much to it either because I was renting. So if I hadn’t have bought my flat then I would still have my deposit with maybe some minimal additions to it. However if my flat had risen in value then k on selling I could have gotten back my deposit and more.
Hi Alex, I am in the process of selling and about to exchange after the lengthy eight months of this process.. before the exchange however my valuation has expired and we needed to apply for another one. It came back at a different price (much higher) which puts the chain in jeopardy. HA is now in talks with the surveyor not sure if they’ll be able to negotiate for the price to remain as it was as we were literally days prior exchanging. Would this mean new mortgage application for the buyers and further costly delays ??? Just so sick of it .. Let me know if you have any ideas around this, thanks for the video x
Hey, ahhhh man! I’m so sorry to hear about all of this and the fact that the process has been so long for you 😩😩 tbh I’m not entirely sure what this would mean as mine didn’t expire so I didn’t have to go through this. I think you are on the right track with speaking to the surveyor and seeing if the valuation could be adjusted given that you are so close to exchanging now. I think it would also be worth you following up with the surveyors yourself in addition to this being done by the housing association. If it can’t be adjusted then the other option might be seeing if the buyer can pay more, or meet you in the middle somewhere (although this would mean you’d need to take the shortfall in price). Is there any particular reason why this has gone on for so long?
@@Alexandrasblog_ you’re a star, thanks so much for your support! We wrote them a letter as you’ve suggested so hopefully they will adjust the price. As to why it’s been so long..? Our buyers solicitor is an absolute ... no responses for months, excuses etc.. the list goes on. I’ll let you know if we managed to get till the end..
@@Alexandrasblog_ No point in staircasing unless you plan to stay for a long period of time also harder to sell as it become unaffordable . Also I would only do it on a house not a flat
We need people speaking on these government schemes
You need to think strategically and understand what you really want to achieve in my point of view. With the shareownership scheme, it is a great way to get on the property ladder. You either in it for the short term, or you are in for the 100% ownership. Selling a 65% share property especially to someone who is highly going to be a first time buyer would be difficult as it is a no brainer if your next door neighbour has the same property as you at a cheaper price because of the lower % in shareownership. If you are looking at shareownership for the short term, you would keep the % of your share low max of 40%. Wait till you value of share gets greater then exit. I see comments in this thread making out this scheme is a scam, pleeeease don't dis it until you do your homework. Always remember, no matter what scheme you choose in relation to the help to buy scheme or even a normal mortgage, YOU DON'T OWN THE PROPERTY UNTIL YOU PAY YOUR MORTGAGE COMPLETELY!
@ Nick Exactly! Totally agree with you! There is always a risk when you buy a property- whether it is shared ownership, help to buy or a full on mortgage. People need to do their own informed research, read the paper work/ terms and conditions before signing contracts that bind them legally so that you are fully prepared of the risks and are not blindsided in any way.
Proper information thank you
Correct, you don't own the property when you have a traditional mortgage. However, you are not expected to pay rent in addition to your repayments. There are also a lot more restrictions when it comes to shared ownership, as Alex mentioned you are not allowed rent, some do not even allow pets. I personally agree that is a poor product that was created to give the illusion of being a homeowner.
Very well said, especially in the economy for most, shared ownership is great to get on the property ladder. There are cons to everything, but at least this gives people the security of having their own home.
It is a scam! Listen to what she says in the video. NEVER do shared ownership.
The fact that the government allows such systems to exist is shocking, the developers are profiteering simples ! so much of UK property law and practice is exploitative and allows lawyers and certain others to make easy money
I totally agree with you. This is a ponzi scheme
The first property I went for was shared ownership and I remember being bitterly disappointed when it fell through! I now Thank God it did.🙏🏽
What did you end up buying. Or did you stay private rented
Awesome video. I have always been against shared ownership properties. Seems like a trap to me. I opted to move out of london and but a house out right as it was much cheaper and straightforward. Wouldn't recommend shared ownership to anyone
Have you sold now and what's next for your property journey?
Would be great to share with us how you did that.
@@dukewilliam3660 it's been a great experience. I've started sharing our experience on my channel which focuses of property, personal finance and DIY. We hope to upload a sit down style interview video between my wife and I, showing and sharing our experience of moving. I hope this will show others, especially young families that it's totally possible. We only just got back from London and we make it work by visiting often (covid aside)
We are looking to buy a second property in just 2 😅. I share this to say, be encouraged folks 😊
@@TheMalcolms7 Great move, I’m looking forward to the video
@@LilyellaLondon Thank you. Working on a new video now. I will also get my wife's point of view too 😊
I bought a shared ownership house years ago and sold it after stair-casing to 100% with some redundancy money. I didn't do any research at the time so was lucky it worked out well. The main attraction for me was getting somewhere that I could put a cat flap in the front door and adopt a couple of rescue kittens!😺😺 All I thought about was cats!! 😺😺
Thanks for the insight! Looks like I'll be ruling out the Shared Ownership option to get on the property ladder🙈
You explained everything so well, thank you. I have a 3 bed semi detached shared ownership house and own 50%. Luckily we live in quite a nice sought after area. This video has really helped me consider whether to buy the full share before deciding to sell further down the line. The main drawback of ours is the garden is so small otherwise we would liked to have extended it (even with just a conservatory). We have an open plan space downstairs and no separate room incase we want to have a family. So many things to weigh up! I didn’t realise that the housing association relisted the house for sale at the share that the previous tenant purchased, I thought they could decide what share to sell it at. I will have to look into it further. Many thanks again 🙏
Super interesting!
I’ve on and off with the idea of getting into shared-ownership.
Your thoughts and experience are really helpful
Me too, I’m planning to view a Shared Ownership property shortly, maybe that will change my mind once and for all. 😊
After speaking to a friend I've decided to give up on owning my property and getting into shared ownership. I feel people and society especially social media make it seem easy to own and buy property from say early 20s, yet its far from the truth. I'd libe to own my home but I've decided to not put pressure on myself if I don't. As a 34yr old mum of 1 work 5days a week pays childcare(before covid) and rent etc no benefits, it's hard and I'm ok with not owning. All this I bought my house at 23 or 25 videos I see, are great if u can but I'm done unless I move to say Newcastle or something.
Hey Elana, yes 100% agree! There really is pressure from society to get on the housing ladder which is also a very British thing as I have friends in the US and Europe where people choose to rent rather than buy unless it’s for an investment. At the end of the day you know more than anyone what’s right for you and your family and as you’ve said, that comes first before society’s opinions and pressures. Keep doing you!
Same here. I was becoming obsessed with saving for a deposit to the point where i felt guilty spending money on food! It's just not worth it.
@@gemma8611 lol me too! Pre-covid I stopped going out with friends and was just sitting home saving. Then covid came and said: ok, now you can sit home whole 1 year! I regret it so much haha how stupid was it, lets live life
@@jmusic2024 yep! Just save a certain amount each time payday comes but don't get too obsessed. That's the key. Got to find a balance. It's great to have goals but it's not worth being completely miserable in the process!
I am tired of paying rent for bad places to live. It sounds stressful but landlords are too. That money I have paid in rent is gone all of it.
But it is nice to know there is something there in hold for you.
What I've learnt from your video is about the percentage, I didn't like to own only 25% or 30% but you are right that is easier to sell.
Thank you for sharing your experience
Thank you very helpful. I had same experience HAs take no responsibility for any works pests, boiler etc. However, if u want to do any improvements, u have to ask permission, plus pay fees. Its really a rubbish way of getting on the property ladder.
I just learned of this "new" practice of shared ownership: after wondering how people could "afford" all of the new-builds in my neighborhood, city, and state. This video is very good in explaining the complexities of unloading a shared property. Much thanks.
Do they do shared ownership in USA?
@@user-cj4hs5sh2x Am sure some people are familiar with the practice. However, this is new information to me.
This was really informative, thanks for sharing your journey! Some people have told me to look into shared ownership instead of renting but I think your point at the end is extremely important, with renting you are not liable for any leaks, boiler breakdowns etc and that stuff can be hella expensive! I hope to get onto the property ladder next year but most likely an investment property (buy-to-let). I personally like the flexibility of renting right now despite the pressures of society that it is 'dead money'.
It is dead money, if you get a mortgage as long as property prices go up your share will increase too
Such a helpful explanation of things, explaining via your own story made it easier too. Oh wow THREE solicitors, eesh complicated! Extra costs explained really helpful. Glad it all worked out - enjoy your new home 🏡😊
Thanks for your helpful video. I'll be watching this again when it comes to selling my shared ownership property. Definitely not looking forward to the convoluted process!
Well I really hope it’s not as complicated and stressful for you!
Thank you so much for your video. It’s been really helpful! 🙂 I can definitely relate to you so much! I am 33 and looking into Shared Ownership to buy a 25-30% share preferably a one bed because the help to buy scheme and the new government’s 95% mortgage scheme is still not affordable for me if buying alone- these schemes are great if you are buying with a partner or friend though. Therefore, I feel like shared ownership is my only option as I am not eligible for social housing because my salary is considered too high and therefore not a priority. I am done wasting my money on private renting which is why I moved back home to my parents to continue saving. I think Shared ownership is good if you want a place of your own and and somewhere secure to live instead of paying off the landlord’s mortgage. I have also subscribed to your channel too! There is a new version of the shared ownership scheme that was announced by the government- you can buy smaller shares, you can staircase in 1% increments and they offer to cover household repairs for new shared ownership buyers. Here is the link to article on the Shared Ownership website: www.sharetobuy.com/news/government-changes-to-shared-ownership-scheme/
Glad you found it helpful! And yes completely understand with it being the only option, that was literally my position too! Thanks for subscribing ♥️
No scheme offered by the Government is a good scheme, all benefit the Government in one way or another.
Until you can afford to buy with a good deposit, and suitable monthly payments you must either live with family to save super fast or rent (but can't be in London, since you won't save anything... means extra transport costs to work, and extra travel time) but if you're renting without saving or saving very little then you'll be stuck long term unless you're in the process of getting a substantial promotion or payrise.
My advice buying such a small percent is the cost of staircasing is too costly and not to go with shaded ownership as a scheme. You pay for your surveyor and theirs, same for solicitors fees. I understand that there's a fee with newer shared ownership schemes with every staircasing. So that's A LOT of fees for that many staircases.
Completely agree with you. I think most everyone are thinking the video finishes in a negative note, but even in her negative conclusion I still see the benefits of it, her case was stressful and the pandemic didn't help her neither. The option for many of us is doing the share ownership or keep paying rent to private landlords.
@@davidromero1549 You make a very good point 👍🏾. I have just completed my shared ownership purchase and qualified for a 40% share and hope to staircase to 100% in the next three years- I have worked out a savings plan that will help me achieve this on my current salary. I lived at home with parents for the past year and a half and was able to save a lot of money which I am grateful
for but still not enough to buy on the open market. Therefore, shared ownership was the best option for me and I have many positive stories about this scheme from work colleagues and family members so it’s not all bad !
I think it also depends on the location of your Shared Ownership property, financial climate (i.e. COVID) and ability to staircase at a faster rate due to salary and current savings.
My mortgage, rent and service charge are well under £900 per month and SIGNIFICANTLY more affordable than renting privately (can’t believe how much money I wasted for three years before moving back home with parents !). I know that the rent portion and service charge can rise or decrease each year but they explain all that when you buy a shared ownership property so it’s important to budget for that - so there are no surprises along the way. I now have a secure place to live as long as I pay my bills on time and do not fear shady landlords trying to increase the rent extortionately or having the power to kick me out when they want to sell or renovate 🤗.
Furthermore, I know of people who were able to sell their shared ownership properties with no problems as they bought in good locations, decent Housing Association and their properties were built well and had great amenities - they have used their equity from their sale to buy on the open market which they wouldn’t be able to do without shared ownership. It’s not for everyone but it works for some 😬.
Even if you buy on the open market- you still need a mortgage and the property doesn’t really belong to you unless you pay the mortgage off in full and bought a freehold property - if you miss a mortgage payment you are at risk of your home being repossessed. Furthermore, if you fall on hard times you can claim housing benefit for the rent and sometimes service charge portion when you have a shared ownership property which is something I didn’t know before my mortgage broker, solicitor and housing association sales advisor explained to me. However, if you have a full on mortgage you are basically on your own and can’t really access much help. I am glad the government have made changes (albeit small) to the shared ownership scheme and I hope they continue to do so 😊
Thanks for the info. I was never drawn to the scheme but you’ve been very informative
This is really helpful. I've been weighing up shared ownership and this gave me useful insight
Wow! This was really informative. Thank you so much for sharing xx
Such an informative video - thank you Alexandra for being so open and honest *carries on saving*
Thank you I think you saved me from future problems! For last few days I was checking some SO properties... but it is not worth for the hassle, what I "save" by building up equity I think it will go to fees, fees, feees, maintenance, repairs and more fees. Will rent few more years. This scheme should be revamped.
I always wondered how shared ownership properties are sold - say if you want to move somewhere else - the scheme probably bets against this and instead is aimed at people who will be less likely to move within 10 years for example - but you explained this very well. Also all these rules it does sound like they really don't want people to sell their properties.
Such a helpful video. I'm 3 years into my shared ownership property and I'm looking to sell. Unfortunately with all the issues surrounding the cladding I'm going to have to wait for it to be rectified before selling 😫 thanks for a little insight of your experience. Glad to know im not the only one who wouldn't buy a s/o flat again!!!! Xx
Ahhhh I’m so sorry to hear about the issues with cladding 😩 It’s so frustrating! And so annoying because you wouldn’t have known about it it when you bought the flat 😞 I really hope it doesn’t take that long to be sorted. With so many people experiencing issues, hopefully the government realises and takes some action rather than it being kept in limbo as to who should bear the costs 😒 xx
Also just seen this
ruclips.net/video/4708b419mfU/видео.html
@@Alexandrasblog_ thank you for this, all leaseholders in my building have sent the email to the local MPs. Hopefully something positive comes from this. Its honestly been such a nightmare and like you said we have to deal with all issues that occurs within the flats. I've had several leaks across the 3 years (touch wood they've all been fixed) - but everything is so costly and the Housing Association do the bare minimum to support you. Anyways. Thanks again for the video. Have a lovely weekend x
Ladies, who are your HA's? I'm chasing a EWS1 form and it's coming up to a year now. It's super frustrating. I'd hoped the new clarifications with RICS on the 5th Apr was going to change the situation, doesn't seem to be the case.
@@ahms8689 that’s so frustrating! I’m sorry to hear that. I had a friend who was literally in the same position. He was buying the one buying the property but couldn’t because his sellers couldn’t get the EWS1. He waited for almost a year. My HA was L&Q
Really interesting to hear your experience of selling, as I've only spoken to those who own through SA, so they haven't gone through the entire process. It's good to see how it works if the value is lower than the price you paid. It's definitely not a great scheme, but I think maybe it's (ever so slightly) better than help to buy. With help to buy, the size of the loan increases when the value of the property increases and that is just not okay! At least with shared ownership, if you manage to sell at the valuation amount, you're not having to pay out extra money. I definitely think it's better to move further out and buy something you can afford without using SA/HTB, it's a better investment in the long run! Congrats on managing to sell and congrats on the new home.
This was really useful, your breakdown and explanation was really good too! Looking forward to more content
Thank you!!
Very informative video and congratulations on your new home!
I'm in SO and every person I spoke to said keep your share below 40% because most can't afford anything over!
Also there are only 4 houses on SO here and each home got over 200+ applications as we're in a sought after area
Thanks for the insight!
Very interesting! It definitely varies from HA to HA though. In my experience, my HA sold mine - I told them I wanted to sell and it all went through them!
Hey! That’s interesting. Did they sell 100% or just your share?
@@Alexandrasblog_ just the share x
Ah yes. So the HA tried to sell my share but couldn’t which is why I had to sell 100% on the open market with an estate agent x
@@Alexandrasblog_ you seemed to be a lot more involved than I did though! I literally just told them I wanted to sell and then accepted viewings x
Same with my HA. I'm selling atm. They've done everything and I've just had to accept viewings then tell them who I wanted to go with x
I wrote a comment on self invested too.
Thank you for sharing your story because they make everything seem simple and reasonably priced. Sorry for your experience but so kind of you to share your experience. X
Hey! Thanks for the feedback, much appreciated! And yes they really do! X
Excellent video , really well explained . I am looking at a 25% shared ownership property in London , I am late 50’s and on my own. It’s the only way I could afford to buy in London so no choice . I’m pleased that you sold in the end . I’m concerned on cladding and escalating service charge payments and escalating ground rent .
Hey there, glad you found the video helpful 😊 and yes I can see why that would be a concern. Re the cladding this is something that would/ should come up on the survey for when you are looking to buy the property, so it should come up as part of the surveyor report and in regards to the ground rent/ service charge this is something you could pick up with the housing association prior to buying to get an idea of how much increases could be in a year on year basis. I think there are also some instances now were ground rent might even be scrapped.
@@Alexandrasblog_ thanks Alexandra , I am actually a Chartered Surveyor , lost the family home via a divorce. Just feel a need a place of my own rather then paying 1250 per month in rent in Teddington . Really good advice as regards the potential escalation in ground rent and service charge and getting prior clarification in writing from the housing association . Thanks also on the cladding aspect , you hear about so many people in impossible situations in this regard don’t you . Much appreciated.
@@normhanson981 sorry to hear you’re having to start again. This can’t be easy. And I really understand on not wanting to rent anymore. Rent really is extortionate in the UK. And yeah like I said I would really encourage you to ask as many questions as possible in the process even if that means speaking to fellow neighbours before you purchase to find out how they’ve been getting on/ the dealings they’ve had with the housing association and whether they’ve experienced any crazy rent/ ground rent spikes. Sometimes it helps just to hear it directly from others.
Wishing you all the best in this next phase and really hope it all works out for you 😊
Great video and details . Very honest and good explanation. Thanks a lot. You probably save me from this craziness it’s sounds like a scam. I heard lots of stories about this program and they all very similar to yours.
Very insightful thank you. I was contemplating getting a shared ownership to get out my mum's gaff but if that's the only benefit, then I might as well wait 2 more years till I can buy outright.
I advised both my children to NEVER get involved with shared ownership or any government buying schemes😮... They both listened well.
Thanks so much for this video! I have been struggling to find a video of someone explaining how they sold their Shared Ownership property, yours was very helpful 👍🏾👍🏾
I'm contemplating buying a 25% share in a flat but the many conditions around selling are just too restrictive! 😟
Hey, glad you found this helpful! I know, there are a lot of restrictions, however this was also what I experienced as part of my selling process and not all of these restrictions may apply with the housing association that you are intending to purchase your shared ownership property with. I would advise that you think about the main concerns that you have based on some of your own research and what I’ve spoken about in this video and raise it with whichever housing association you are thinking of purchasing with. Ask them to go through all of the conditions and restrictions that would be applicable and then you can weigh up whether it will work for you.
@@Alexandrasblog_ yes, I'm expecting the contract paperwork from the seller any day now so I'll be able to scrutinise it with my solicitor. Thanks again 😊
I found this very helpful! cheers......was considering shared ownership but changed my mind now
Great content. Well explained. Went through this myself. If you can buy outright it is best. Costs can mount up. 😕😕
Girl you are right. I’m selling my shared ownership flat right now and so far it’s okay but would I do it again? Nope! I did research before I bought so I knew this would all happen. I think that’s why it’s going so well 😅
Well done for doing the research! I was definitely blind sided 😫
@@Alexandrasblog_ don't get me wrong - even knowing what I knew, and the next person has this wonderful video (thank you for it!) to help them know ahead, it is still more stressful than I anticipated. All a bit of a pain, with all the knowledge in the world! So happy for you you're out the other side!!
Excellent! Excellent video, thank you for being so open. Good luck with your sale 🤞🏾
Thanks for this information. It really does feel like a trap... 9 years in 😬🙏🏼🙏🏼
Really helpful for me ! Exactly the feedback I was looking for. It looks a bit like a scam to me...
Great video, really clear and sound advice, glad you managed to get out of it!
I don’t think shared ownership solves the housing issue or provide value to those struggle to afford houses to be honest, instead it exploits the wealth of those who don’t have much of it which is ironic. People’s wages are clearly not high enough to match the house prices, only way to fairly fix it is raising the minimum wage, but the gap is so wide now, government really failed on this.
WE NEED MORE AWARENESS ON THE POSSIBLE ISSUES AROUND SHARED OWNERSIP. IT IS NOT FOR EVERYBODY!
IT IS ALSO VERY DIFFICULT TO GET A SHARED OWNERSHIP ON FREEHOLD!
This is very informative, I've been researching into shared ownership, but I feel like the more I research the more put off by the whole scheme I become
Yeah I think a lot of people are after looking into it. I do however have some friends who it’s really worked out for and who haven’t encountered any issues. It’s always good to have a good idea and understanding of the risks though, so you can know what you’re getting into.
Thank you for your video, I live in a little 2 bedroom mid terrace S/O having got fed up with landlords selling from under me. I was considering staircasing and buying the whole property so I could own it all. Having watched your video I then realised that the people that may want to buy it may only be able to afford the 25% deposit like I had. Its also in a terrace of other S/O. So if I staircase to 100% it could prevent me from selling it easily.
Hey! So the issue that I had was owning a higher percentage but still not owning the full 100%. So because I didn’t own 100% I had to try and sell and the share that I owned first and that’s where the difficulty came. Because most people doing S/O couldn’t afford my %, however if you own the house outright by stair casing to 100% then it’s no longer S/O and when it comes to selling you’ll just sell on the open market. Does that make sense?
Thanks for sharing this video. Really helpful for when we are ready to sell our shared ownership property
After watching the panorama programme it defo put me off . 😩 the service charge increase...
Really good video, such clarity and honesty.
thank you for this! thanks for sharing the numbers too!!
Great video! Many thanks for sharing your experience Alexandra s2
Shared ownership is a con - all the down sides of owning a property i.e paying for anything that breaks with all the restrictions of renting i.e subletting
Great video! Very clear info. Thank you very much. Would you share some info about selling a help to buy property next?
Hey, really glad you found this helpful! Unfortunately I haven’t had any experience with the buying or selling process of HTB so wouldn’t be able to provide any useful info x
@@Alexandrasblog_ No worries.. Keep up the good work!:)
Share ownership can be great if you can't buy 100% however you should be careful into buying " new build" as they are overpriced so hard to make a profit ( unless you keep it for 10 years plus l guess)...l bought mine at 28 many years ago and was a great choice...now l will pocket more than£ 50.000
I have been considering shared ownership. And recently went to view a house, I would say it was too expensive! Also they said it was a 3 bedrooms but I see it more as a two bedrooms. The third bedroom was so narrow. The other two where also so small I wonder where wardrobes will even go! And worst of all, downstairs was an open plan with really small area reserved for "living room"... The only good part of the house is that the garden was big enough.... I feel like they knew these houses will be sold on shared ownership thus buyer will not be so picky and because they just want to get to the housing market will happily accept it as it is... However, I feel that if the house was big enough, I would have considered it as I wanted to get then save from day one to then get 100% in the future
Interesting, the whole valuation thing having to be valid sounds like a headache tbh - great video tho, just subbed 😌😌
Yes it was! I was so worried about it expiring before I completed, so was grateful that didn’t happen. Thanks for subscribing!
This is very helpful and informative video! Thank you!
Whew girl I remember seeing this from afar.
GURL you know it was a hot mess 😂
Thank you for the information it was very helpful and useful. You are a super star 🌟 girl 👍 . I’ll share this video with family and friends
Thanks for this video. Very informative. I'm also selling my shared ownership flat and agree it is a nightmare but luckily I have a buyer. Did you have any issues with paying Stamp Duty when doing the staircase and sale? Thanks
Hey, glad to hear you have a buyer! No I didn't but i can't remember if it was because I opted to pay the full stamp duty when I bought which then meant I was exempt from having to pay again (it was only £500 so was woeth paying it at the start) if I decided to staircase or because my property fell below the stamp duty threshold.
Found this video really helpful. Would love to see what a breakdown of the cost of selling looks like. Did you breakeven or make a profit/loss after selling?
Just realised you were on Self Invested. I knew you looked familiar 😊 Thanks for sharing your story!
@@AbiChow hey no worries! Was literally about to direct you to the self invested video as I did a breakdown of my costs during the video 😊
@@Alexandrasblog_ It's crazy how much it all cost, sounds like it was really stressful and scarring 😟 Hope you're doing well now it's all behind you!
@@AbiChow honestly it was traumatising I can’t lie and has defo put me off buying for a while! I’ll happily rent until I’m ready to buy again 😅
@@Alexandrasblog_ I'm really happy you shared it because it's made me reassess how I want to buy myself. I think I'll go back to my dreams of cabins in the woods and vanlife 😂 London & Shared Ownership is too wild!
Love this video Alexandra - so helpful! Thank you 😊
Thank you for sharing your experience. Very helpful explanation.
Good explanation of your experience and perspective 👍🏾
Most Gov schemes are a real tangle, on purpose. It's a shame you did not find out all about 'what happens when I want to sell?' BEFORE you entered into this mess. One thing I did not know, and as you say, so very unfair, is that you are responsible totally for the maintenance of the property even though you pay rent to the HA - they got you by the proverbial every step of the way.
Thanks for taking the time/effort to make this video, I'm having thoughts about shared ownership
Thank girl, great tips
Great video 🙌 very useful and to the point! Thank you 😊
Hi Alexandra glad to see your in your property. Can I please ask how long did the entire process take? Unfortunately the Housing Association is not so great. The RCIS Surveyor you advised was very good. We are just waiting to confirm something with the Housing Association who are dragging their heels. I am praying and leaving it to God. I am hoping that the property will be put on the open market as according to the Surveyor he believes that's what going to happen. I am praying.
Hey, glad the surveyor was a good choice for you! So I actually started the process in August 2019 and because of the HA being unable to sell it, plus COVID, plus people saying the price was too high I didn’t get an offer until July 2020 and then I completed in November 2020.
Hi - Thanks for this video extremely useful can I ask how it worked when you said your property went down in value? As far as I remember from the video you said the original value was £305k, the property was originally valued at £320k and then after the valuation expired it went down to £292k, if that is the case your responsible for anything below the original value didn’t you owe the housing association 13k? Super useful if I could pick your brain on how that works as it seems like the property depreciated and actually had negative equity? Could you advise if this is typical and what caused it to go down and the ways you could combat a low ball valuation?
Hi there! So you have to pay the housing association if you sell below the market valuation. I can’t remember exactly what I sold it for but I think it was £295K and so as it was valued at £292k I got to keep the £3k. I think anyway I can’t remember tbh. But that’s how it works anyway. And no there wasn’t negative equity as I only owned 65% and so my original mortgage was for $188k and the 35% I paid rent on. I hope this makes sense but let me know if not!
@@Alexandrasblog_ thanks so much you’re video was super eye opening, could I also ask if you think staircasing up to a lower amount would help to allow the property to sell easier? Of course as you mentioned the HA makes you take your maximum affordability but let’s assume someone’s maximum affordability was 40% would you recommend stay at your initial share and not stair case intentionally to assist with an easier exit? I can see this might mean lower equity growth but is it a risk worth taking? Grateful for your time and thoughts, thanks again for getting back on this!
@@samiulislam5918so my next door neighbour who had a one bedroom had a 25% share and was able to sell her flat pretty quickly. The 65% made it hard selling it another person looking for shared ownership as a lot of people couldn’t afford 65% I think that’s why I ended up having to sell it on the open market. I can’t advise whether it would be easier or harder to sell a lower amount but in my opinion I do think it plays a factor
@@Alexandrasblog_ thanks again for your thoughts and time, best of luck to you on your future endeavours
Thanks very insightful & congrats on selling
Thanks for the transparency
I heard about this and it was offered to me but I was advised against it by a colleague. A friend who went ahead with his shared ownership purchase thoroughly regretted it. He never lived in the property due to problem neighbours. Devastation all round.
Wow 😔 that’s so sad!
Hi This video is very helpful as I want to sell my property at the moment. Sounds very stressful and I that's something one can do without especially at this time. Can I ask did you paint or do any decorating works to your property, before getting valued ect?
Hey, glad you found it helpful! No I didn’t do anything to my property beforehand. Tbh before the pandemic I was hardly in my flat as I was either working or travelling so it was basically kept pretty much brand new so I didn’t see it necessary to do anything else
Thank you x
Excellent and comprehensive, tysm for taking us through both pros & cons.
Subbing for more :)
Hmm crazy, sounds like housing associations only benefit from owning the share without suffering the consequences. If you bought it for 305k and sold it for 292k, did you have to pay the difference to the housing association? I read somewhere that the tenant would be liable for the difference if the property value drops.
Yes you are correct, there is a difference to pay. Fortunately for me my property dropped in value and was valued at £290K so I was able to accept the £292K offer
Oh no! I thought you could sub-let under shared ownership (for me, that was one of the pros). Is this a hard and fast rule, or does it depend on your contract, the housing association you're with, etc.? Thanks for this video. Really insightful :)
Hey, so I had thought it was a hard and fast rule as including for myself and my lease none of my other friends who have done S/O have been able to - but someone commented on this video that they had been able to, so it would be worth checking with the housing association beforehand
@@Alexandrasblog_ Thanks for the speedy response. Will take your words on board! :)
Thank you for this!! Total demystification! Ironic what you said about a 20k deposit, we had that much but our salaries are so low we couldn't afford a mortgage to even get a bloody garage in London 🤣
Yet to be seen if moving in Dec 2019 was a great idea or the worst idea... thanks covid 😂
Deffo would never do shared ownership again, but it was our only option as I needed to be in London (outskirts) for work. Typical now WFH has become a thing we could look further afield for cheaper full ownership 😂
Completely hear you on it being the only option! Really hope it works out for you x
There were enough warnings about shared ownership!
That’s what I was thinking too. I didn’t go down this road.
@@PRINCESSGEMINI1987 Buy hey......now they can post a video on here and monitorise their ' struggle'. Housing Association' are the biggest criminals with their regenerating communities. They are housing developers plain and simple. They are businesses and they are in the business of making money! Anything with full backing of this government is definitely something not to trust! Simple.
Yes I renewed a lot in the property myself as the Housing Association didn't want to know. Alexandra I am stressed already and I am just starting the process. Lol
It’s ridiculously stressful I can’t lie, and there isn’t a way around that but to keep going until you get to the other side. If it makes you feel better, apparently it’s buying and selling a property, having a baby and getting married that are supposed to be the most stressful things you can do in life so you’re not alone!
The process you went through took so long. Glad you came through it in the end. I just hope and pray my process gets going as quick as possible. Thank you for your help x
Really helpful, thank you
Thanks Alex, very helpful, I came here from the self inv. video, I think I applied for a flat in the same building (noticed you mentioned your neighbor had sold 25% within a week easily, think I was one of the 4 applicants! - on the 4th floor!) I was offered the flat 1st but declined, do you know if were are many other 25% owners in that building/area, really regret turning it down & would not be staircasing so think it could work for me temporarily
Glad you found the video helpful! Unfortunately I’m not sure what % people owned. I only know about my neighbour as she was literally next door!
@@Alexandrasblog_ OK thanks for letting me know & sharing your experience
Most of these schemes mean a person is not in a position to buy a home.
Agree! It also doesn't help that society is obsessed with telling everyone to buy a home and to do it my any means necessary. It's also difficult knowing that our parents (baby boomers) were all able to purchase homes a lot easier than we are. I think people need to do what is right for them and if that is to rent until they can afford a 100% mortgage then so be it, but if some people choose to do it via shared ownership they shouldn't be penalized for that either (either by society or through hidden govt costs)
Would love to hear more about your experience with the ews1 process. What type of cladding and how many floors did your building have? Did your HA pay for it?
Hey! So thankfully my building didn’t have any cladding. It’s something I’m aware of as two of my friends who have bought new builds now have the issue. With one of my friends he and the rest of the tenants are clubbing together to foot the bill (I think they are getting some sort of deal). With the other one it’s still in limbo. I think it’s still being decided in parliament who will pay commonslibrary.parliament.uk/research-briefings/cbp-8244/
@@Alexandrasblog_ thanks. You’re so lucky we’re having to wait for our HA to complete an investigation of the external wall. The government ruled against a bill to protect leaseholders last month so as it stands anyone under 18m is paying.
The fact the government voted against a bill to protect leaseholders is actually insane and I guess really sheds further light on these schemes and how much they do not favour the owner whether shared or an outright owner. It’s so frustrating that their failure with Grenfell and then bringing in new building regulations to “sort the problem” is now affecting so many more people. I’m really sorry that you’re having to face this issue 😔
@@Alexandrasblog_ thank you and I agree re these schemes. They really need to be approached with caution.
My girl is a mortgage advisor and when I found out that you could pay 300 in mortgage and 600 in rent I knew shared ownership was stupid...
It’s not the choice for everyone however some people choose it as a way of getting on the property ladder even if it means owning a lesser percentage than what is rented. People can own anywhere from 25% to 75% and in some cases more. A few people have shared how they have been able to make money on their shared ownership properties. So I think it comes down to each individual case
thank you for this xxx very informative.
WAY TOO MANY HIDDEN COSTS!
Selling a property after one year is where she went wrong. That increases the risk of selling at a loss or zero gain. You should ideally hold for at least 5 years before selling especially if the market is not moving as fast as in prior periods
Hi Louise. Thanks for highlighting this. The purpose of this video was to shed light on the complications that I had through selling a shared ownership property and so people could be aware when purchasing theirs. It wasn’t about the property dropping in value. And yes you are correct, people should aim to hold for at least 5 years where they are able to do so.
Best thing to do with shared ownership is to buy it out right
Hey Alexandra just wanted to let you know that I advised the Housing Association that it would be best that I go on the open market. They have not done anything to this point and have had no viewings, so I made the suggestion that I would approach an Estate Agent. All the Housing Association has said is that they will take it off the market then. Did you have to send the Housing Association anything at this point? They said I can sell at 100%, even though my share of the property is 50%. The Housing Association have not said much to me.
So I had an 8 week nomination period which gave the HA time to sell. They weren’t able to get any offers so I was able to then sell on the open market. They were aware as it was the end of the 8 week nomination period. I think I may have sent them an email to confirm but tbh I can’t remember. As I was at the end of the period and that was the terms of my lease I wasn’t too fussed about getting any response from them and went ahead and and started the open market process. And yep on the open market you sell at 100% irrespective of your share. Essentially the buyer is buying from both you and the HA
@@Alexandrasblog_ I really appreciate your help as the process to me is not straightforward and not getting the advise from the Housing Association as I thought I would. My nomination period is not even up, but they have been doing nothing and to be honest, I only see it advertised in the Housing Associations website and that is it. So you pay the percentage of the sale to the Estate Agent then?
Yep you pay the estate agent a fee. Each estate agent will charge something different but it’s usually in the 1-1.5% range of the sale price. The terms of my lease meant I also had to pay my HA’s legal fees as well.
@@Alexandrasblog_ Thank you for your assistance.
Hi Alexandra I do hope you don't mind me asking you questions about my shared ownership property and appreciate your help. I am getting there eventually as spoke with a nice young lady from Metropolitan who was so helpful and got things moving eventually. Going to have a ID interview on Monday with her and have made an appointment for their photographer to come around in the week to take pictures of the property. Once they do that, how long did it take for them to advertise your property? Do you actually get to see evidence where your property is advertised for sale? Also money paid back to the Housing Association once your property was sold, is at 1% of the amount that your property was valued?
Hey, no worries at all! So once the pictures were taken I had to send them to the HA to do the listing. They were extremely slow. The pictures were taken in august and the listing wasn’t up until the end of September. (My next door neighbour didn’t have this problem though). And yes once the listing was ready I think I was able to review the listing first.
So because I sold 100% through the open market and not just my share I didn’t have to pay a fee to the HA. Instead I only had to pay their legal fees. If they had sold my share I would’ve had to pay them 1% and the 1% is based off the sale price.
Let me know if you need any more info!
Thank you so much Alexandra. When you sell at 100% on the open market, do you have to sell up to the price of the evaluation? Can you sell for more? I do not want to get less than the evaluation price as I personally think it is still a little low.
The lady I spoke with at Metropolitan said she would ask if I could sell my property at 100% as she said she doesn't see why not as that's what they use to do anyway. So hopefully I get to sell at 100% anyway. Can I ask, which Legal firm did you use? I am of course going to get 3 quotes as the legal fees I know are expensive, especially as I am here in London.
@@elaibesummers906 so I sold at the valuation price. I was told that I could sell above and keep the profit for myself, but I ended up selling at the price. I agreed with the estate agent what we would market the property at.
@@elaibesummers906 yeah you can do a price comparison for legal fees online and go with the best quote. The firm that I used was Berkeley Rowe - they wasn’t the cheapest though. I used them as my estate agent had a relationship with them and it was easier.
@@Alexandrasblog_ Thank you so much for your help, much appreciated xx
I wouldn't touch a shared ownership property! I'd rather buy a canal boat and live on the river! I don't trust anything with these places!
😂 fair enough!
Thanks, this was very helpful!
This was awesome!
The whole process seems complicated and convoluted, did you still lose money with her shared ownership route (buying and later selling) compared to case if you had rented through out that period?
Yeah it was seriously complicated and very stressful. I think tbh it worked out roughly the same as my rent when I was renting and my rent and mortgage on my shared ownership place was pretty similar. If my flat hadn’t dropped so much in value then I would have got my deposit back so yeah that was the major negative.
@@Alexandrasblog_ hmm, sad to hear you had to go through this, doesn't you get back share of your deposit and the mortgage payments you already made when you sell (dependent on the price at time of selling), I thought this is already factored in your final calculation?
@@samrazakir sorry not sure I completely get your question but I think you’re asking what happened to the money from paying off my mortgage?
@@Alexandrasblog_ Apologies, I meant: (your initial deposit+mortgage+rent+selling costs) minus (what you got through sale) is greater than (your initial deposit + full rent through all this period) by (your initial deposit - £500), apologies again if I made it again too complicated
@@samrazakir sorry yes this is a bit complicated 😂 but I think I can see what you’re getting at. So in summary when I sold my flat because of all of the fees and the redemption charges to come out of my mortgage early I lost any equity that I could’ve got back and was £500 down on exit. If I had been renting then I would not have used the deposit that I saved to buy the flat but at the same time I wouldn’t have added much to it either because I was renting. So if I hadn’t have bought my flat then I would still have my deposit with maybe some minimal additions to it. However if my flat had risen in value then k on selling I could have gotten back my deposit and more.
Great video. Soo helpful 💖.
Sounds like an overly complex process. Also, i don't think she said if she made a profit on the sale? It would only be worth the aggro if she did
Thank you 😊
Hi Alex, I am in the process of selling and about to exchange after the lengthy eight months of this process.. before the exchange however my valuation has expired and we needed to apply for another one. It came back at a different price (much higher) which puts the chain in jeopardy. HA is now in talks with the surveyor not sure if they’ll be able to negotiate for the price to remain as it was as we were literally days prior exchanging. Would this mean new mortgage application for the buyers and further costly delays ??? Just so sick of it .. Let me know if you have any ideas around this, thanks for the video x
Hey, ahhhh man! I’m so sorry to hear about all of this and the fact that the process has been so long for you 😩😩 tbh I’m not entirely sure what this would mean as mine didn’t expire so I didn’t have to go through this. I think you are on the right track with speaking to the surveyor and seeing if the valuation could be adjusted given that you are so close to exchanging now. I think it would also be worth you following up with the surveyors yourself in addition to this being done by the housing association. If it can’t be adjusted then the other option might be seeing if the buyer can pay more, or meet you in the middle somewhere (although this would mean you’d need to take the shortfall in price). Is there any particular reason why this has gone on for so long?
@@Alexandrasblog_ you’re a star, thanks so much for your support! We wrote them a letter as you’ve suggested so hopefully they will adjust the price. As to why it’s been so long..? Our buyers solicitor is an absolute ... no responses for months, excuses etc.. the list goes on. I’ll let you know if we managed to get till the end..
@@sense1983 really hoping it all gets sorted for you! X
@@Alexandrasblog_ you ♥️
@@Alexandrasblog_ you ♥️
Such an informative video xx
You can sub let once you get the permission from the housing association
My lease didn’t allow it, but yeah it might be different depending on the HA
@@Alexandrasblog_
Maybe as long as have permission sometimes they may place a maximum time frame of 6-12 months
Ahhh okay, good to know thanks!
@@Alexandrasblog_
No point in staircasing unless you plan to stay for a long period of time also harder to sell as it become unaffordable . Also I would only do it on a house not a flat