As well as doing your homework to work out if this is right for you, even if you never intend to staircase, I suggest looking in depth at the sales process. You'll find it's typically twice as long as a standard sale with 10 times the hassle. Watch Alex's interview with Lemuel where she talked about how hard it is to sell. Problems can also occur where you have a high share and can't get the buyers because it's out of price range. Thank you Lemuel and Maya for speaking to me. I'm loving this new co host, please make her a permanent ❤️
Thanks for sharing. I appreciate this must be unbelievably stressful but you and others stuck have done the Lord's work raising awareness. This is very personal and the fact you are willing to share so that the others do not get trapped is very big of you. It is my hope the govt will intervene soon. It won't benefit them if more people steer away from shared ownership because of all the hassle. Wishing good luck to you and your family
I'd love to share a few things based on research, which might help those buying a leasehold flat (which is what most flats are). Not to spoil anyone's dream but so you have your eyes open and check figures and legal documents. 1: first up, you're not buying the flat forever, you're buying a lease, which means the flat is yours for a certain number of years, usually around 100. After this it reverts back to the freeholder (the freeholder owns not only the land but the building your flat is in). 100 years is OK if you're only staying there for 5 years or so. But if it's less than 100, and you stay longer (because moving is expensive and a hassle) the clock is ticking, and once your lease gets down to 80 years or less you will need to extend it otherwise the flat is hard to sell. And lease extensions cost A LOT. (multiple thousands). 2: Ask who the freeholder is. Not something most first-time buyers think of. Research them, as a lot are bastards to deal with or take no interest in the property when things like building works need to be done, or rip you off with charges etc. 3: Like Harleigh says, check the service charge. It can add £100 a month or more on to your monthly bills. It's not unusual to find flats that have even higher charges because at some point in the past the freeholder mismanaged it. Also check what it covers (e.g. frequency of cleaning communal areas, what they are and aren't responsible for, does it include a sinking fund for major works). 4: Check how much is in the sinking fund, when the next cyclical repairs are due, and that the fund will cover it - especially for flats in older houses such as Victorian where windows are near the end of their lifespan and may need replacing. Your survey should pick this up, and that's your cue to check how much is in the sinking fund/major works fund. Otherwise you could end up with a huge bill and a nasty shock. 5: Last, and maybe most important, if you ever do run into problems with the freeholder, over repairs, charges, major works, whatever, the law is almost entirely on the side of the freeholder. Although the lease is a supposedly legally binding document, and says they have to do certain things, a lot of it is a matter of interpretation. If it ever gets to a dispute, first of all it is hugely time-consuming and energy-draining to challenge them as they will either relentlessly pursue whatever it is that they're doing, regardless of how much it might cost you as the leaseholder or, conversely, will be absent and almost impossible to engage with. If it gets as far as taking them to a tribunal, this costs you not only your legal fees but theirs too. You need a very strong case, and even then the odds are it will go against you. You may hear that there is a process called a section 20 consultation before they are allowed to do anything that will cost leaseholders money, during which you can raise questions and objections (should you have any). There is, but it is only a box-ticking exercise. The process states that they have to have 'due regard' for your objections, but as long as they simply say they have had due regard, they can then go ahead and do whatever they like. As I said, I don't want to rain on anyone's parade, but over the years myself and many friends have had problems with freeholders. When I first bought we didn't have platforms like this and the ability to share all this information so freely. Now that we can, I just want to pass on some knowledge and help maybe a few people check things you might not have thought of and save you from stress further down the line.
Great contribution, thank you! I’ve extended a lease through the statutory route, so know what a painful and expensive process it is. Also I know the importance of having a sinking fund! I cover some of this in my video leasehold vs freehold: ruclips.net/video/B-GZhQ0P48w/видео.html
Private market rent average in London for a decent 1 bed flat, in a decent area, has reached 2k per month. You are still better off going with the shared ownership even if you are not interested to staircase, you'll still be better off compared to the private market rent
I’m really sorry to hear this lady’s story. I purchased my first property as a shared ownership and managed to staircase to 100% I had the same problem when I initially wanted to staircase and couldn’t afford to buy the rest but it gave me an idea of where I needed to be to purchase the remaining share. So put a plan together and then purchased the rest a year or two later. This then gave me enough equity to release later on to purchase my first rental property. So for me shared ownership has been a blessing. I’m really sorry it hasn’t worked out that way for her 🙁
I’m happy to hear it worked for you. Thank you for sharing your experience. Please visit endourcladdingscandal.org/call-to-action/ to see how you can help efforts to end this crisis - thank you!
I'm really happy to see this has been successful for you. It's depressing to hear people aren't able to staircase. But well done and i wish you every success with your properties 🙏
@journey2DebtFreedom I had a similar positive story to yours. I did mine a while back and without it I doubt I would have been able to get on the housing ladder. The system isn’t for everyone as stated in the video. In my experience, what I found shocking wasn’t the actual % figures (as I was fully aware of the “loan/Equity” process prior to going ahead with it) but what I missed in my research was the extra add ons that I would have to cover during the staircasing process; solicitors fees, valuation, admin etc for both sides. @deepa, It took me a little longer than I initially plan to buy them out but I hope your circumstances change for the better especially the whole new build flats safety issues and you’ll be able to reap the rewards of your investment. Good luck.
I never regreat buying my share ownership studio at 28.... l had a flat for myself paying less that what l would pay renting a room in london! ... l never had problems with service charge, it was always resonable( l think the problem is new build, they are overpriced and difficult to make a profit if you sell it too soo ) ... l also tried to staircase at some point but on 1 salary l was unable to do... but l think it worked better for me anyway ( l know other people who bought like this and staircased too after 2-3 years) ... this is my opinion
I guess personal issues that stopped me from buying 10 years ago was a blessing in disguise even when it appeared I was missing out with everyone around me getting on the property ladder via shared ownership schemes
Let it be known to all shared ownership owners even those who are considering purchasing a shared ownership property, if you default on the rent, you will lose your property and you won’t get your money back on the mortgage on the share you own. Please note shared ownership is just a long assured tenancy agreement.
100% facts! If I remember right there was a case law like that with Midland Heart. A lady bought her 25% share outright for £30k and then later defaulted on the rent and lost the property. Shared ownership is a trap with all the service charges, more costs staircasing and then I think you have to give housing association first refusal if you want to sell.
That's it though. The trap of leasehold to me is the way they market these properties. It's false advertising. You pay rent and part own and god help you if you are stuck in one of those bad cladding buildings. The govt is taking citizens for a ride and we need to be talking more about it
You're right! When you get into the detail, the scheme is very flawed! I think it's a gravy train for housing associations because they get all of the upside, without any exposure to the downside!
Not related to video at all but you help our family to finally bought our home using Help to Buy (2020). Your videos have been very useful. You also took time to reply to my question regarding eligibility of HTB 2021. Thank you so so much!
My husband and I staircased to 100% in new cross and stayed for about 6 months whilst looking for a house on the outskirts. We moved the very day of the grenfell fire to Croydon and often think about what what would have been our situation if we hadn’t!
Well done for staircasing to 100% and buying a house! Does the building you moved out of in New Cross have cladding issues? If so, you are very fortunate!!
Wow, this should be illegal, it’s just not affordable, yet it’s advertised to people who would struggle with affordability. Honestly, I wish the best for Deepa, how was she supposed to know all of this!?
It's completely unfair! One of the biggest faults of the scheme is that it is not very transparent. So, it is difficult to make an informed decision before committing to it...
I went to a mortage broker , a few years ago, who said I could only buy shared ownership...tried so hard to convince me, I felt something was off. Luckily I saw another broker who said that was a load of nonsense and that I could afford to buy a house in the area I was looking in, which ended up to be true. Sounds to me like there's quite a few brokers who work closely with shared ownership scheme, to attract customers for them. Great channel, keep it up!
Thank you for the sub! Are you interested in Shared Ownership? I have a playlist of videos on the scheme here: ruclips.net/p/PLUG_SDz9gLQI3lKk_GIxi9Kgn_GeCaDDp
When I bought I really wanted a brand new shiny flat, but after looking at many and the service charges realised that I did not want to be paying £2500 per year. Over 5 to 10 yrs this is a lot of money. Its so easy to think £2500 isn't much each year, but when you're given the bill each quarter it must be really hard to pay or attribute it to any value. I ended up looking at only properties which were share of freehold and ended up buying one. I don't have a service charge and we split bills between the 3 properties. My friend bought a leasehold flat and is paying £3750 per year! I was lucky enough to have saved a big enough deposit to avoid the government schemes but can understand why some people think it might look good (on the face of it)
Hi Gareth! I have the same thinking as you on this. Well done for doing your homework and buying a share of freehold with minimal maintainer requirements. I know you don’t have any service charge but it might be worth building a sinking fund for any unexpected works, such as to the roof...
@@SelfInvested Yes Im lucky in that I live with very nice neighbours and we have already had to make some small repairs to the roof. I paid and the other owners then transferred their share. We did think about a sinking fund but thought it might get more confusing if someone sold, trying to give their portion back etc. Unfortunately there aren't many share of freehold flats on the market, but definitely glad I bought one rather than a leasehold.
Hey Rachel! The government is actually planning to expand the scheme and lower to minimum share you can buy to 10%! This will just attract financially more vulnerable people to the scheme...
I do understand the difficulties and some tricky situations that may arise with the shared ownership. To be honest tho, I'm very happy about having my own flat rather than sharing one with other 3+ people who may be dirty, noisy, nasty etc - also with 1 bathroom and 1 kitchen and 1 fridge to share. With a very small amount more compared to a room rental, you can have your own peace. It makes a massive difference in your life quality mental health etc. Of course you always have to pay attention where and in what you are investing, even as "little" as 25% of the share :)
Glad to hear it worked for you. You’re right, people need to pay attention to where they are buying, but also they need to understand the financial responsibilities of being a shared owner and lease agreement they are signing... It can, however, be a better option for people than renting, but this is not always the case...
@@SelfInvested sure, 100% agree :) any investment is a risk and even under the same scheme, each contract and development have their own terms...so always read the papers :) anyway, anything is better than abusive landlords (happened more than once) and scammers (yep, that too..).
I think I would have done the same as you and moved further out to buy outright. Very few will be able to buy 100% of their home through Shared Ownership!
I stair cased to 100%. I also had the pre-emption rights removed when I staircase to 100%. Shared ownership worked for me as I would not be able to afford to buy a place like that on my own.
Hey Luvett! Thanks for watching! I accept that the scheme does work for some people, I actually interviewed one person it did work for, Caroline (ruclips.net/video/kwATPO4VcNQ/видео.html), but there is also a large number of people it didn’t and doesn’t work for, who feel as though they were misled or under informed. The purpose of these videos is to shed more light on the scheme and help people make more informed decisions
I am in the same position but I never tried to staircase as I do not need to...my flat rose by a 100k since I bought 9 years back but I did put 20% deposit equalling the gov/housing association 20% with remaining 60% is mortgage...I am thinking of trying a 10% staircase in next 2 years.... On the service charge, this is an issue with all flats...and we are all suffering with this issue...Governement need to regulate this with management companies...
Thanks for leaving a comment! You're right, the service issue is a problem with flats generally, and many of the issues with shared ownership flats are general problems with the leasehold system, which affects all leaseholders and is a system that needs to be reformed. The problem with service charge for shared owners is worse, however, because regardless of what share you own of your home (even if it is 25%) you still responsible for 100% of the service charge and all repair costs. This seem particularly unfair to me because you don't own 100% of the property and you pay rent for the share you don't own. Typically when someone rents a home they don't own, they don't pay a separate service charge and are not responsible for repair costs... Also, shared owner have a weaker legal status than normal leaseholders...
@@SelfInvested I am with you 100% on shared ownership vs the service charge payment allocation. I think the more voices we have the more we can raise this issue. Thank you for this channel for starting to talk about it.
Great discussion on traps of shared ownership. I recognise everything Deepa has flagged up and also experienced 300% increase in service charges over 10 year period for no apparent reason. Buyer Beware.
Thank you, Kirsty! It’s difficult not to think this is a deliberate move to lull you into these developments. I’ve heard many similar stories with the same excuse that this was due to a miscalculation or underestimation of how much the service would actually cost...
My mother staircased to 100%, remember though that the original house cost was £60,000 and it took her 20 years to staircase. It’s near impossible now.
Are there any scenarios where shared ownership IS the right decision? Perhaps if your plan is to not staircase at all, but build equity on your share for 3-5 years, sell, and have a bigger deposit to then buy outright? That's what my plan was but don't know if this is realistic?
So, the scheme does work for some people. The next interview I do will be with someone who was able to get the scheme to work for them. I think the scheme can work for people, but you need to make sure you understand how it works, you have an exit plan (or at least a long-term), you crunch the numbers and consider all your options.
Its really important to know that the housing associations, and private house builders, and gov are equally responsible for the total mismanagement. Its another way to short squeeze people for more taxes. 1. Housing associations are outsourcing most of the services under joint ventures 2. The gov are not regulating this market - its too expensive, and the gov are funding these housing associations that don't know how to negotiate pricing 3. The red tape being removed under Dave Cameron drastically reduced the safety measures required 4. These properties are massively overpriced because they can't sell them all, and because of margins The scary thing is there are still 100,000s of new homes coming out to the market in the next few years.
Shared Ownership Scheme is just another big acceptable scam until people start demanding answers. The selling is as dodgy as the sales were for PPI from banks. A good journalistic investigation is required to blow the lid off SOS. I am so grateful to my late dad talked me out of it when I was looking for property in London many years ago. I hope Deepa continues to pursue this and get what she wants. Great video!
Well done Lemuel for bringing this subject up to warn many. It looks as if it's the easier and cheapest way but the trouble with it is PAIN in the end.
this was eye-opening! i watched a few of your videos now and you truly bring some clarity into a market i find very intransparent and daunting. thank you!
My pleasure, Lisa. I’m really happy to hear you’re finding the videos useful. Here’s a link to the full playlist for the Shared Ownership scheme... if you haven’t seen it already: ruclips.net/p/PLUG_SDz9gLQI3lKk_GIxi9Kgn_GeCaDDp
Thank you for this informative video! I have a quick question regarding affordability. In part 2, Deepa said her situation changed, I.e marriage. When you staircase, are you allowed to include your spouse’s income for remortgaging purposes?
I feel shared ownership in areas outside London is a more appropriate place to go for it. In particular houses vs flats. The shared ownership properties (new and resales) get snapped up incredibly quickly around where I am. I managed to get a new build under shared ownership (3 bed semi detached home) on 40% share. I have no intention of staircasing as this isn’t my future home just a way to get a foot on the ladder) and this way it’ll be easier to sell on due to it being a minimal share. The property I’m in has risen in value by £27,000 in the last 12 months. I’m shocked at the situation she’s gone through and I urge people to do their homework and ensure every I is dotted and every t crossed.
The scheme does work for people inside London as well, my next interview will be with one such person, but you may be right - that it better suited to places outside London - I will have to do more research on this. You are absolutely right, people need to do their homework and have an exit or long term plan before committing to the scheme. Thank you for your contribution!
I agree you've got to know what you're getting into. I'd recommend watching Alex's story about how hard it was for her to sell. This is the real kicker, once you're in, it's made impossible to leave. 🙏
@@SelfInvested I’m really impressed by the way at the level of thought put into your replies so I appreciate that, refreshing to see on RUclips. Looking forward to seeing your next video! One thing that may be worth mentioning at some point is that these homes are being sold sometimes before you even get a chance to view them, they’re still that popular. I got extremely lucky with mine as I’m in Oxfordshire and to pick up what I did at the cost I did was really good. Keep up the great content!
I went into the scheme in 2007 @65% and within 2 years I bought the remaining shares. You really need to do your research. My rent and service charge combined were very small at the time so it was easy for me to save money and on top of it my salary did increase so I was able to get a good mortgage and buy the remaining shares. Today I’m renting out the place but I want to sale it as soon as the market allows it. I don’t thing that the scheme is a great long term investment. Get in and out as soon as you can cause the service charge kept on increasing.
I think it can work for some people, but it’s important for people to approach the scheme carefully, do their research and consider all their options before committing to anything...
I really wish someone had shared this sort of information with me before I'd bought. Unfortunately there weren't so many reviewers at that point and all the reviews through Google or the developers or housing associations were lovely... How naive I was!
I personally think shared ownership is a big con and the industry needs regulation. My dad bought one many years ago 50%. 5 years after buying it he wanted to move and luckily there were buyers already looking to buy it at the price he had set having spent a LOT of money renovating it. Contour Housing (who he bought through) basically told him to take down the listing from the Estate Agent as he was breaching his contract and could only sell at what Contour deemed it was worth. He ended up losing £20,000 even though buyers were willing to pay the price! To me, the are parasites, nothing more nothing less.
Sorry to hear that, Gareth. Yes, the scheme is very restrictive. You need to be careful and read the terms of your agreement with the housing association. You do need to get permission before making structural changes, and must give the housing association the opportunity to sell your home as Shared Ownership first...
Thanks for this video Lemuel! I recently decided to pull out of my shared ownership purchase - there are just too many risks attached (for me personally). I'm now looking for a flat I can buy outright on the outskirts of London, without any of these govt schemes!
These schemes seem like a help to sell scheme as opposed to help to buy personally but it works for some. @Vic Ade You could always acquire a run down house (ie: probate/un-mortgageable ) in London, agree a price upfront, exchange on delayed completion, do the property up to increase its value then go for a personal mortgage and complete the sale. If you do this properly & ensure the numbers stack you can actually pull all your initial investment out (deposit).
@@Only1SapphireDiamond Haha! 'Help to Buy' should be rebranded to 'Help to Sell'! I agree that would be a more appropriate name. The Shared Ownership scheme seems like a gravy train for housing associations to me. That's a very interesting idea about probate/un-mortgageable homes! Is it something you have done?
It's worth doing your research, but I've found its incredibly hard to find real reviews from people who are still happy after the initial honeymoon period wears off. It's the big achievement events of staircasing and selling that are most stressful, they are compounded by the current cladding crisis. I think you've made the right decision to look further out. No restrictions, full ownership and no Leasehold, that's the ideal 🙏
@@SelfInvested After your video and watching more of them. Since I want to buy in London, I won't the service charged scared me the most. I plan on buying 1 bed in the open market, will probably have to renovate. let see how it goes.
@@aboutthatlife1418 We’ll see. I genuinely thinking that I’ll have to start recording videos with the family around because I’m not sure I’ll get enough free time without them...
@@SelfInvested I think you should do it, now that most people are working from home people are used to seeing family members in vlogs, pets too. You can always vlog in the car as well, thats another option but keep the great content coming!!
A lot of it is to do with is a lack of knowledge on how the system works when people look to purchase this and also a fault of housing association or governing bodies who are not totally transparent about the scheme. If you know exactly how it works and how it can benefit you then it's the right path to go.
Hey Didar! I don't think you're wrong but I would change your last sentence to read, "If you know exactly how it works and how it COULD benefit you, then it MAY BE the right path to go." Even if you know how the scheme works and how it could benefit you, it doesn't necessarily mean that it's the best or right option for you...
@@SelfInvested I agree, the main reasons to go down this path is if your living situation isn't the greatest combined with the affordability, deposit, if you're single or both just don't have the finances/income for a regular mortgage. To get yourself on the ladder as a short term stepping stone then I would suggest this route otherwise avoid it.
Yes, all those points are important. My next interview about Shared Ownership will be more positive about scheme, with some tips about how you can get it to work for you...
@@SelfInvested well to tell the truth I’ve been a spendaholic for the last 20 years and now clearing up my life one step at a time, within the next year I hope to be debt free and then save for a deposit for a property. I am worried about the scheme but I live in Devon where stuff is cheap here. I have a couple of friends in shared ownership properties and will ask them about it.
Good to hear you’re on the path to being free of debt! Well done for turning it around! I think speaking to friends on the scheme in your area is a great start. Do they have many Shared Ownership houses in your area? I think the houses are generally better than the flats...
@@SelfInvested thank you for your kind words, one of my friends has a house on a 40% share with no chance to purchase more than 80% which I think is stupid but that’s his choice. The second is in a block and has the dreaded service charge but thankfully it’s not much. There are not many where I am around the EX16 Postcode area and that’s where I need to be but I have to be debt free first before I even think about it.
I never understood these schemes, but, I believe, if you can’t afford the whole house, then you need to look for a cheaper house, this may mean moving to a different area. People being obsessed with living in a certain area is why the prices are so high, if you stop wanting to buy in an area you will be helping to reduce demand so it’ll help start driving prices down
I agree that if you can't afford the whole property, then you should buy a cheaper property, but everyone's situation is different and the scheme has worked for some people. I think each individual needs to research the scheme properly, make sure they understand it, and have an exit or long term plan before committing to it...
@@SelfInvested that’s the problem though, people buy property emotionally, if they fall in love with the property or location they get fixated on buying at all costs. I get the impression that a lot more people have a sense of regret that they’re stuck with an asset that is difficult to shift on. As she said in video, most of the people interviewed on their opinion on the scheme have only been in for 2-3 years, not the 10 she and others have been trapped
But when you can only afford 50% of a property or pay similar in rent, what choice is there? And people need to live where they work, it's flippant of you to say 'live elsewhere', besides house prices are levelling out across the country.
@@SelfInvested I'm really grateful to come across videos like this, as I'm in a position as a single parent where I wouldn't be able to take out a full mortgage so have been working towards the goal of shared ownership to get the first step onto the ladder. But its useful to see the other perspective once you have bought in and makes me realise how there is a lot more to think about. Thank you both :)
You’re welcome! With all its flaws, the scheme does still work for people. The purpose of these videos is to help people understand things that might not be apparent from the outset. It’s important consider all your options and work out which is best for you!
I'm interested in her 3 x I come multiplier conclusion? What leader offers just 3 times income ? She can get 5 times income. She will benefit when house prices go down. Share ownership is great right now because prices are due to reduce.
It's common sense. If you are already paying through the nose - mortgage PLUS rent, PLUS service charge and ground rent where are you supposed to find thousands more pounds to "stair case?" Not only that, these properties are usually overpriced. Unless you have a windfall coming in the future avoid at all costs. To buy shared ownership has always been a false economy in my opinion.
Shared ownership can work if you buy when younger, don’t staircase and can afford to stay there for a while. The downside are the extra costs in terms of time and money purchasing plus you are responsible for ALL of the maintenance and upgrades, not just the share you are responsible for so the HA ends up benefitting which is not fair.
When you extend your lease your it's is valued based on the total cost so you would have to pay for example 20k to extend a lease whether you own 25% or 75%.
Property newbie here... Are you able to sell your share? Like are you able to sell your share and purchase another property with the profit your share has generated?
Welcome! Yes, you can. It's not a straight forward process, but the housing association can sell your share to someone else and you can use any profit from the sell towards the purchase of another property... Here's my playlist on the Shared Ownership scheme, it should give you a better understanding of how it works: ruclips.net/p/PLUG_SDz9gLQI3lKk_GIxi9Kgn_GeCaDDp
Well, firstly, if the website did state she could staircase in the first year, but this was untrue, then that would be misleading and inaccurate information. Secondly, the point she was making was that it is difficult to staircase to 100%, even if you start with a 75%, because property prices increase and generally do quicker than salaries...
I want to get a shared ownership ship from help to buy but as soon as I started to look it get news articles and viedos of like warning so what's so bad and worrying with it ?
With all its flaws, the scheme does still work for people. The purpose of these videos is to help people understand things that might not be apparent from the outset. It's not to tell people, "don't use the scheme". It’s important consider all your options and work out which is best for you! I have a whole playlist on the scheme, here: ruclips.net/p/PLUG_SDz9gLQI3lKk_GIxi9Kgn_GeCaDDp - but you can start with my BBC Panorama video may be: ruclips.net/video/R2les6Yle-E/видео.html
@@SelfInvested so if I don't have a lot of money but I just want a nice house to live is this a good option still housing covers the rent and service charge so all I have to pay is like £300 mortgage a month would you recommend this form my information?
@@cwilson1768 Sorry, but I can’t give you personalised advice. You can watch my videos for general information, but if you need specific advice, you’ll need to engage a professional mortgage or financial adviser. I can point you in the direction of one if you wish...
This came up in my suggestions right at the right time! Have yall playing in my car while I drive to Costco 😄 thank you for this video. Will continue to trust my instincts. 100% ownership only
Very good information and definitely will be helpful to a lot of people the is always pros and cons in this situation, the location you purchase will also make the difference especially if you buy a house in central it will increase every year. I have one question maybe I’m being stupid but why doesn’t she sell her flat what’s stopping her selling it ?
Wish I saw this before buying my 50% share. two years into my shared ownership I tried to staircase to 100%. The valuation by the housing association (which I paid for) put the property at the original value of £300,000, but when I got the bank to do an evaluation they put the at £280,000 confirming it’s more reflective of the market. This meant to buy the other 50% I would need to cover through deposit the different to meet housing association evaluation. I’m looking at starting the process again in the next few months 🤞this will now be 3 years later.
Was the surveyor you paid for unwilling to adjust their valuation in light of the bank's assessment? If possible, it might be worth getting them to talk to each other if this happens again... Best of luck with it, and do keep me updated!
Thank you for such an eye opening information and we are just pulling out of a property for which we have already paid the reservation fee. It will be helpful to do a comparison between shared ownership and help to buy scheme based on a fixed income and consider x amount for rent and x amount for the government equity loan after 5th year. Also talk about the 5 year break benefits vs rent please.
You’re welcome! I’m glad you found it useful! Why did you pull out? I compare Help to Buy with Shared Ownership in this video: ruclips.net/video/kkfCOIj60IM/видео.html Let me know if it contains the information you’re looking for :)
As a shared owner my experience has been different. Would advise anyone thinking about it to do your homework, it maybe an alternative for some who can’t afford to buy on the open market. I am now in a position to staircase to 100% but not able to do so due to the cladding scandal even though I’m in a block less than 18m.
You’re right, doing your homework is imperative because the scheme is not very transparent. The scheme has worked for some people and my next interview will be with someone who made it work for them. Sorry to hear you’ve been caught in the cladding scandal. Deepa is in a similar situation as you will hear tomorrow...
@@shamsa971 Keep doing your research and crunching the numbers. I’ve done some other videos about the scheme here: ruclips.net/p/PLUG_SDz9gLQI3lKk_GIxi9Kgn_GeCaDDp
Make sure you check everything and understand exactly what you're getting into. I'd recommend the videos explaining why you'll never staircase to 100% and Alex's interview about selling. These will be key moments with shared ownership that will cause the utmost stress. 🙏
Do your homework and make sure you understand how it works before you commit. It can work for some people and I hope to interview someone it has worked for so they can explain how they were able to get the scheme to work for them and share some tips. Here’s a link to all the videos I’ve done on Shared Ownership: ruclips.net/p/PLUG_SDz9gLQI3lKk_GIxi9Kgn_GeCaDDp
It does work for some. Make sure you know what you're getting into. Personally this was the biggest mistake of my life. I wish I had this information before I purchased and then I would have saved longer and bought freehold and mortgaged a whole property. But we live and learn. 🙏
I’m currently in the process of applying for a property, but I’ve been having some serious doubts. At the moment it’s just about affordable, but if the rent increases by 2% each year for the next 5 years, it won’t be. The service charges are extortionate in some places and it begs the question as to whether the associations are pocketing the extra cash for themselves. I work in an industry that’s heavily regulated, but it appears the regulations for the shared ownership market are very loose. I don’t see anything changing any time soon under our current government, as they favour the landlords, but hopefully one day someone comes into power who will see that the property market is a sad state of affairs.
I think all you can do is make a decision based on the information that’s available to you. Do all the homework you can and consider all your options. I do think Shared Ownership is a gravy train for housing associations... In the BBC Panorama episode on the scheme, it was suggested that revenue from the scheme was used to fund other services provided by housing associations... I think this is unfortunate, if true, because Shared Ownership is supposed to a form of affordable housing for the financially less able... Anyway, all the best with your purchase!
I am quite good with contracts, though I am not saying I am the responsible tenant at all. However, if this lady signed a lease stipulating that at anytime she could purchase the full property, then that is the lease she signed, until she signs something else unbeknownst to herself. No Housing Association could take a website to court and rule out a signed document. Only a judge can throw out a signed contract and that will be because tenant or shared home owner broke the signed agreement. I think there might be a case to be made for the Housing Association to have one thing in contact and another on their website. When you start talking about finding legal advice they get scared, but I think Ms Mistry-Longley has a case because it has led her to the trouble she is in today. Shared ownership also means when the housing association wants to change, upgrade or fix something it is coming out of your pockets at their prices whether you like it or not. If a door cost 200 pounds to repaint you are paying for it in some cases.
Thank you for your contribution, David! I'll make sure Deepa sees your comment. Is there also a case for mis-selling if what she bought was advertised in one way, but sold with different terms?
Not as far as I understand. From I understand, rent usually increases annually just above the rate of inflation, but this depends on your housing provider. The cost that usually catches people out is service charge. Many people experience this cost increasing unexpectedly and without good explanation
Shared ownership is a con, it may have been worth buying before 2010 but now not worth it the properties are above market price for the type of properties in the area, and they all are leasehold, even houses which are normally freehold. the new builds have low leases and very high service charges it's absolutely ridiculous. I don't even understand how banks are giving mortgages on these overpriced properties as a bank valuator should never give a mortgage on most of these properties. If anyone is suffering financial hardship I would try suing the bank as if you were to try buying a property outright on the market instead of these schemes they usually undervalue it but in shared to buy it's like automatically accepted meaning they are not accessing the risk and they owe that due diligence to you as their customer
It can workout cheaper than renting and it does work well for people. The key is to make sure you do your homework so you’re not surprised by anything...
@@SelfInvested That’s why I’m only looking at resales. New builds are a total rip-off with the crazy rents and charges. Until 10 years ago maybe it was truly affordable, but not anymore. It turned into a bit of a swindle when it became clear developers were calling the shots, and it all seems unstoppable under the current system of profit profit profit, screw other people. Ideally I am looking at spending more on my monthly mortgage repayments than on the rent. I just want a proper place to live in, a home, at a price I can afford, without all my money going into someone else’s pocket. I don’t care for the glossy brochures from the housing associations. These places look more and more like boutique hotels - all soulless faux everything prefab copies.
@@Mimix476 you are absolutely right about New Build properties. I would also personally stay away from the London house market and Flats. 1) The rate of property prices increase in London in recent yrs, makes it very difficult to save money to the staircase. 2) Flats always seem to have extra fees/ service charges. Most of which you have no control over the rate of increase. Good luck
Helpful video for people to consider all aspects of this scheme. But also this makes it difficult for anyone to sell their shared ownership...so unfortunately this lady is making any possibility of selling her own flat, smaller 😑
This is especially troubling for Shared Owners, who can only afford 25% of their home but are responsible for 100% of the service charge and repair costs...
Yes i agree. If I had this information before I purchased, even I would have waited until I could afford to mortgage a whole property and freehold without restrictions. Further out would have been fine. 🙏
The terms that you are responsible for 100% service charge while owning 75% is onerous!. Maybe, you can make the case to Competition and Marketing Authority (CMA) to investigate. You could get a petition to government like those who got trapped by escalating ground rents. Also, you can lauch a collective legal case under unfair contract laws with other share-ownership owners. There is a good chance you win. Hope this helps. God Bless
@@SelfInvested Yes, maybe that is why I suggested to contact CMA. If you can show they have not put that info (100% liability for service charge regardless of % ownership. I think it will be class-action in legal context. So you may be able to mobilise people in the same boat to look into. Happy to help,
Now that prices are dropping, due to the sanitary/economic crisis. Does this mean that having a small share put you in a stronger position going forward? As the small share has more value as the price declines?
For current shared owners, if house prices fall, then the share they don’t own should become cheaper to buy. For those that buy while prices are low, the longer it takes them to buy the remaining shares, the more expensive it will become, but they may benefit from equity growth as the share will be worth more...
The problem in a crisis environment is that not only prices fall but also incomes, hence lenders become stricter. But in theory yes, if your income was stable and prices fell, the remaining share to purchase would be reflective. 🙏
I personally prefer the HTB scheme, but it’s not perfect. I compare the two schemes in this video: ruclips.net/video/kkfCOIj60IM/видео.html I also plan to interview a HTB user soon, so watch out for it!
Very knowledgeable 👌👏 I appreciate this videos I shared with most people who are thinking about getting this scheme. In my mind the government doesn't have our own (the average people) best interests in mind. I'm strange brother.. for example free cavity walls insulation I could have done it for free but I didn't because in my mind they will be using unqualified people and cheap materials and very likely cause water to be trapped and dump during the winter. This is just a silly example. My wife wanted to buy a share ownership in 2013 in elephant and Castle for the same kind of Reason I didn't buy it (it looked to good to be true). I managed to changed her mind. I could make lots of example where government intervention has made life worst for us.
These schemes can work for people, but many of them are ill conceived, and many use these schemes when there are other options better suited to their situation. Best thing is not to rush into anything and instead take some time to weigh up your options. I really want to do a video on how people can compare the options available to them… I need to think through how that could work!
I was suspicious from the start about shared ownership, however I still went to a viewing and what they told me never added up. Service charge ground rent and then your bills. Then later on your service charge goes up, it’s never ending. I am buying a share but yet I have to pay 100% of repairs not the percentage I have brought. Don’t forget about the lease 99 years it’s a joke.It’s just a financial trap that will eventually bleed you dry. Stay away from this scheme is my advice.
As well as doing your homework to work out if this is right for you, even if you never intend to staircase, I suggest looking in depth at the sales process. You'll find it's typically twice as long as a standard sale with 10 times the hassle. Watch Alex's interview with Lemuel where she talked about how hard it is to sell. Problems can also occur where you have a high share and can't get the buyers because it's out of price range.
Thank you Lemuel and Maya for speaking to me. I'm loving this new co host, please make her a permanent ❤️
Thank you for your advice Deepa Mistry-Longley.
Thanks for chatting with Maya and I, and here’s a link to the Alex interview: ruclips.net/video/Q-nwCcCJ1Bw/видео.html
Thanks for sharing. I appreciate this must be unbelievably stressful but you and others stuck have done the Lord's work raising awareness. This is very personal and the fact you are willing to share so that the others do not get trapped is very big of you. It is my hope the govt will intervene soon. It won't benefit them if more people steer away from shared ownership because of all the hassle. Wishing good luck to you and your family
@@nfornneka thank you so much x
@@SelfInvested thank you
Your daughter is too adorable!! 😃😄
😊 thank you!
I'd love to share a few things based on research, which might help those buying a leasehold flat (which is what most flats are). Not to spoil anyone's dream but so you have your eyes open and check figures and legal documents. 1: first up, you're not buying the flat forever, you're buying a lease, which means the flat is yours for a certain number of years, usually around 100. After this it reverts back to the freeholder (the freeholder owns not only the land but the building your flat is in). 100 years is OK if you're only staying there for 5 years or so. But if it's less than 100, and you stay longer (because moving is expensive and a hassle) the clock is ticking, and once your lease gets down to 80 years or less you will need to extend it otherwise the flat is hard to sell. And lease extensions cost A LOT. (multiple thousands). 2: Ask who the freeholder is. Not something most first-time buyers think of. Research them, as a lot are bastards to deal with or take no interest in the property when things like building works need to be done, or rip you off with charges etc. 3: Like Harleigh says, check the service charge. It can add £100 a month or more on to your monthly bills. It's not unusual to find flats that have even higher charges because at some point in the past the freeholder mismanaged it. Also check what it covers (e.g. frequency of cleaning communal areas, what they are and aren't responsible for, does it include a sinking fund for major works). 4: Check how much is in the sinking fund, when the next cyclical repairs are due, and that the fund will cover it - especially for flats in older houses such as Victorian where windows are near the end of their lifespan and may need replacing. Your survey should pick this up, and that's your cue to check how much is in the sinking fund/major works fund. Otherwise you could end up with a huge bill and a nasty shock. 5: Last, and maybe most important, if you ever do run into problems with the freeholder, over repairs, charges, major works, whatever, the law is almost entirely on the side of the freeholder. Although the lease is a supposedly legally binding document, and says they have to do certain things, a lot of it is a matter of interpretation. If it ever gets to a dispute, first of all it is hugely time-consuming and energy-draining to challenge them as they will either relentlessly pursue whatever it is that they're doing, regardless of how much it might cost you as the leaseholder or, conversely, will be absent and almost impossible to engage with. If it gets as far as taking them to a tribunal, this costs you not only your legal fees but theirs too. You need a very strong case, and even then the odds are it will go against you. You may hear that there is a process called a section 20 consultation before they are allowed to do anything that will cost leaseholders money, during which you can raise questions and objections (should you have any). There is, but it is only a box-ticking exercise. The process states that they have to have 'due regard' for your objections, but as long as they simply say they have had due regard, they can then go ahead and do whatever they like. As I said, I don't want to rain on anyone's parade, but over the years myself and many friends have had problems with freeholders. When I first bought we didn't have platforms like this and the ability to share all this information so freely. Now that we can, I just want to pass on some knowledge and help maybe a few people check things you might not have thought of and save you from stress further down the line.
Great contribution, thank you! I’ve extended a lease through the statutory route, so know what a painful and expensive process it is. Also I know the importance of having a sinking fund! I cover some of this in my video leasehold vs freehold: ruclips.net/video/B-GZhQ0P48w/видео.html
This was extremely helpful - thank you so much.
Private market rent average in London for a decent 1 bed flat, in a decent area, has reached 2k per month. You are still better off going with the shared ownership even if you are not interested to staircase, you'll still be better off compared to the private market rent
I’m really sorry to hear this lady’s story. I purchased my first property as a shared ownership and managed to staircase to 100% I had the same problem when I initially wanted to staircase and couldn’t afford to buy the rest but it gave me an idea of where I needed to be to purchase the remaining share. So put a plan together and then purchased the rest a year or two later. This then gave me enough equity to release later on to purchase my first rental property. So for me shared ownership has been a blessing. I’m really sorry it hasn’t worked out that way for her 🙁
I’m happy to hear it worked for you. Thank you for sharing your experience. Please visit endourcladdingscandal.org/call-to-action/ to see how you can help efforts to end this crisis - thank you!
I'm really happy to see this has been successful for you. It's depressing to hear people aren't able to staircase. But well done and i wish you every success with your properties 🙏
@journey2DebtFreedom I had a similar positive story to yours. I did mine a while back and without it I doubt I would have been able to get on the housing ladder. The system isn’t for everyone as stated in the video. In my experience, what I found shocking wasn’t the actual % figures (as I was fully aware of the “loan/Equity” process prior to going ahead with it) but what I missed in my research was the extra add ons that I would have to cover during the staircasing process; solicitors fees, valuation, admin etc for both sides.
@deepa, It took me a little longer than I initially plan to buy them out but I hope your circumstances change for the better especially the whole new build flats safety issues and you’ll be able to reap the rewards of your investment. Good luck.
Wow, how did you manage this?
I never regreat buying my share ownership studio at 28.... l had a flat for myself paying less that what l would pay renting a room in london! ... l never had problems with service charge, it was always resonable( l think the problem is new build, they are overpriced and difficult to make a profit if you sell it too soo ) ... l also tried to staircase at some point but on 1 salary l was unable to do... but l think it worked better for me anyway ( l know other people who bought like this and staircased too after 2-3 years) ... this is my opinion
I guess personal issues that stopped me from buying 10 years ago was a blessing in disguise even when it appeared I was missing out with everyone around me getting on the property ladder via shared ownership schemes
Possibly! I don't think anyone should rush into Shared Ownership. It's important to do your homework!
Let it be known to all shared ownership owners even those who are considering purchasing a shared ownership property, if you default on the rent, you will lose your property and you won’t get your money back on the mortgage on the share you own. Please note shared ownership is just a long assured tenancy agreement.
You’re right, this is possible if you fall into rent arrears. I cover this in my BBC Panorama video: ruclips.net/video/R2les6Yle-E/видео.html
@@SelfInvested thanks
100% facts! If I remember right there was a case law like that with Midland Heart. A lady bought her 25% share outright for £30k and then later defaulted on the rent and lost the property. Shared ownership is a trap with all the service charges, more costs staircasing and then I think you have to give housing association first refusal if you want to sell.
@@ShootingStar466 Yes, you do. But if they are unable to sell you can sell 100% of it on the open market...
Wow! Thank you for sharing this information. I had no idea!
Definitely going to check out the BBC programme
I'm loving your new co-host! What a sweetie.
Haha! Thank you! Although, I think she’s after my job!
That's it though. The trap of leasehold to me is the way they market these properties. It's false advertising. You pay rent and part own and god help you if you are stuck in one of those bad cladding buildings. The govt is taking citizens for a ride and we need to be talking more about it
You're right! When you get into the detail, the scheme is very flawed! I think it's a gravy train for housing associations because they get all of the upside, without any exposure to the downside!
Not related to video at all but you help our family to finally bought our home using Help to Buy (2020). Your videos have been very useful. You also took time to reply to my question regarding eligibility of HTB 2021. Thank you so so much!
My pleasure 🙏🏿 I’m just happy you found the videos useful! Congratulations on your new place!
Lemuel... respect man! You had a great helper, your daughter.
I did :) thank you!
My husband and I staircased to 100% in new cross and stayed for about 6 months whilst looking for a house on the outskirts. We moved the very day of the grenfell fire to Croydon and often think about what what would have been our situation if we hadn’t!
Well done for staircasing to 100% and buying a house! Does the building you moved out of in New Cross have cladding issues? If so, you are very fortunate!!
That was very well timed. Any later and you may have been stuck like 11m of us. I'm so glad you got away 🙏
Wow, this should be illegal, it’s just not affordable, yet it’s advertised to people who would struggle with affordability. Honestly, I wish the best for Deepa, how was she supposed to know all of this!?
It's completely unfair! One of the biggest faults of the scheme is that it is not very transparent. So, it is difficult to make an informed decision before committing to it...
Thank you 🙏 if i had this information before I bought, I wouldn't have purchased.
I went to a mortage broker , a few years ago, who said I could only buy shared ownership...tried so hard to convince me, I felt something was off. Luckily I saw another broker who said that was a load of nonsense and that I could afford to buy a house in the area I was looking in, which ended up to be true. Sounds to me like there's quite a few brokers who work closely with shared ownership scheme, to attract customers for them. Great channel, keep it up!
Thanks for watching and leaving a comment! Yeah, I would find a pushy broker worrying. Well done for going with your gut!
As soon as I finish seeing this video, I subscribed his channel.
Thank you for the sub! Are you interested in Shared Ownership? I have a playlist of videos on the scheme here: ruclips.net/p/PLUG_SDz9gLQI3lKk_GIxi9Kgn_GeCaDDp
Thanks for the clarity and transparency
Always! Thank you for leaving a comment 🙏🏿
When I bought I really wanted a brand new shiny flat, but after looking at many and the service charges realised that I did not want to be paying £2500 per year. Over 5 to 10 yrs this is a lot of money. Its so easy to think £2500 isn't much each year, but when you're given the bill each quarter it must be really hard to pay or attribute it to any value. I ended up looking at only properties which were share of freehold and ended up buying one. I don't have a service charge and we split bills between the 3 properties. My friend bought a leasehold flat and is paying £3750 per year! I was lucky enough to have saved a big enough deposit to avoid the government schemes but can understand why some people think it might look good (on the face of it)
Hi Gareth! I have the same thinking as you on this. Well done for doing your homework and buying a share of freehold with minimal maintainer requirements. I know you don’t have any service charge but it might be worth building a sinking fund for any unexpected works, such as to the roof...
@@SelfInvested Yes Im lucky in that I live with very nice neighbours and we have already had to make some small repairs to the roof. I paid and the other owners then transferred their share. We did think about a sinking fund but thought it might get more confusing if someone sold, trying to give their portion back etc. Unfortunately there aren't many share of freehold flats on the market, but definitely glad I bought one rather than a leasehold.
Just shows that all the glitter isn't gold. Really sad to hear the situation she is in. Great eye opening video
Thank you! I'm glad you found it illuminating
Thank you, totally spot on... Shiny shiny isn't always good.
Don't get sucked in unless you really know your stuff 🙏
You've got a wonderful presenting voice and persona. Pls keep it up!
You’re very kind ☺️ thank you! Will do 👍🏿
Gosh, this sounds awful and depressing. I really hope the government steps in and does something about this as it's not morally right.
Hey Rachel! The government is actually planning to expand the scheme and lower to minimum share you can buy to 10%! This will just attract financially more vulnerable people to the scheme...
This just put me off the right to buy scheme even more. I was never in favour of paying mortgage and rent for something I was suppose to own.
Right to buy or Shared Ownership? Yeah, I don’t like the idea of paying rent on something you supposedly own either!
Sorry I meant shared ownership
I do understand the difficulties and some tricky situations that may arise with the shared ownership. To be honest tho, I'm very happy about having my own flat rather than sharing one with other 3+ people who may be dirty, noisy, nasty etc - also with 1 bathroom and 1 kitchen and 1 fridge to share. With a very small amount more compared to a room rental, you can have your own peace. It makes a massive difference in your life quality mental health etc. Of course you always have to pay attention where and in what you are investing, even as "little" as 25% of the share :)
Glad to hear it worked for you. You’re right, people need to pay attention to where they are buying, but also they need to understand the financial responsibilities of being a shared owner and lease agreement they are signing... It can, however, be a better option for people than renting, but this is not always the case...
@@SelfInvested sure, 100% agree :) any investment is a risk and even under the same scheme, each contract and development have their own terms...so always read the papers :) anyway, anything is better than abusive landlords (happened more than once) and scammers (yep, that too..).
Is staircasing mainly a problem with flats? I find people who bought houses seem to get a better deal.
Staricasing is at least equally an issue for houses. But I do agree that Shared Ownership houses are a better deal than SO flats...
No that much of a difference to be honest
Shocking. Man I thank God that my wife and I didn't fall into this trap a few years ago. Shared ownership, the house you will never own 🙈
I think I would have done the same as you and moved further out to buy outright. Very few will be able to buy 100% of their home through Shared Ownership!
Exactly!
I stair cased to 100%. I also had the pre-emption rights removed when I staircase to 100%. Shared ownership worked for me as I would not be able to afford to buy a place like that on my own.
Hey Luvett! Thanks for watching! I accept that the scheme does work for some people, I actually interviewed one person it did work for, Caroline (ruclips.net/video/kwATPO4VcNQ/видео.html), but there is also a large number of people it didn’t and doesn’t work for, who feel as though they were misled or under informed. The purpose of these videos is to shed more light on the scheme and help people make more informed decisions
I am in the same position but I never tried to staircase as I do not need to...my flat rose by a 100k since I bought 9 years back but I did put 20% deposit equalling the gov/housing association 20% with remaining 60% is mortgage...I am thinking of trying a 10% staircase in next 2 years....
On the service charge, this is an issue with all flats...and we are all suffering with this issue...Governement need to regulate this with management companies...
Thanks for leaving a comment!
You're right, the service issue is a problem with flats generally, and many of the issues with shared ownership flats are general problems with the leasehold system, which affects all leaseholders and is a system that needs to be reformed.
The problem with service charge for shared owners is worse, however, because regardless of what share you own of your home (even if it is 25%) you still responsible for 100% of the service charge and all repair costs. This seem particularly unfair to me because you don't own 100% of the property and you pay rent for the share you don't own. Typically when someone rents a home they don't own, they don't pay a separate service charge and are not responsible for repair costs...
Also, shared owner have a weaker legal status than normal leaseholders...
@@SelfInvested I am with you 100% on shared ownership vs the service charge payment allocation. I think the more voices we have the more we can raise this issue. Thank you for this channel for starting to talk about it.
No problem, brother! Thank you for watching 🙏🏿
Same situation I am in! Honestly I think this is a serious housing scandal....
So much about it is wrong!
Great discussion on traps of shared ownership. I recognise everything Deepa has flagged up and also experienced 300% increase in service charges over 10 year period for no apparent reason. Buyer Beware.
Thank you, Kirsty! It’s difficult not to think this is a deliberate move to lull you into these developments. I’ve heard many similar stories with the same excuse that this was due to a miscalculation or underestimation of how much the service would actually cost...
It's worth doing the research and speaking to as many shared owners you can find that aren't on the developers/HA sites.
My mother staircased to 100%, remember though that the original house cost was £60,000 and it took her 20 years to staircase.
It’s near impossible now.
Yeah, for most people it looks that way. Especially in London...
@@SelfInvested her house is in London, for her to staircase to 100% from 50%, it cost her 3-4x the cost of the original house value.
Geez! 😬 The main thing is that she did it!
@@SelfInvested yes, but it does increasingly seem to be that the best way to become financial independent is to buy a house in the 90’s in London...
Well done, that is a great achievement!
Are there any scenarios where shared ownership IS the right decision? Perhaps if your plan is to not staircase at all, but build equity on your share for 3-5 years, sell, and have a bigger deposit to then buy outright? That's what my plan was but don't know if this is realistic?
So, the scheme does work for some people. The next interview I do will be with someone who was able to get the scheme to work for them.
I think the scheme can work for people, but you need to make sure you understand how it works, you have an exit plan (or at least a long-term), you crunch the numbers and consider all your options.
Its really important to know that the housing associations, and private house builders, and gov are equally responsible for the total mismanagement. Its another way to short squeeze people for more taxes.
1. Housing associations are outsourcing most of the services under joint ventures
2. The gov are not regulating this market - its too expensive, and the gov are funding these housing associations that don't know how to negotiate pricing
3. The red tape being removed under Dave Cameron drastically reduced the safety measures required
4. These properties are massively overpriced because they can't sell them all, and because of margins
The scary thing is there are still 100,000s of new homes coming out to the market in the next few years.
Yes, the whole system needs reform!
Shared Ownership Scheme is just another big acceptable scam until people start demanding answers. The selling is as dodgy as the sales were for PPI from banks. A good journalistic investigation is required to blow the lid off SOS. I am so grateful to my late dad talked me out of it when I was looking for property in London many years ago. I hope Deepa continues to pursue this and get what she wants. Great video!
Thank you, Patsy! There’s a lot wrong with the scheme. I hope it is reformed to be fairer to shared owners...
Thank you Patsy. Agreed there's alot of slick marketing but now looking back it feels like mis selling x
Well done Lemuel for bringing this subject up to warn many. It looks as if it's the easier and cheapest way but the trouble with it is PAIN in the end.
Thank you! There really can be because people don't fully appreciate the associated costs and restrictions!
Thank you for your channel and providing information that is honest, valuable, relevant and forward thinking. This is giving so many of us hope 🙏🏾💕
I’m glad you think so :) Thank you for leaving such a kind message 🙏🏿
this was eye-opening! i watched a few of your videos now and you truly bring some clarity into a market i find very intransparent and daunting. thank you!
My pleasure, Lisa. I’m really happy to hear you’re finding the videos useful. Here’s a link to the full playlist for the Shared Ownership scheme... if you haven’t seen it already: ruclips.net/p/PLUG_SDz9gLQI3lKk_GIxi9Kgn_GeCaDDp
@@SelfInvested they really are! thank you for the playlist - I will check it out :)
Thank you for this informative video! I have a quick question regarding affordability. In part 2, Deepa said her situation changed, I.e marriage. When you staircase, are you allowed to include your spouse’s income for remortgaging purposes?
You’re welcome! Thanks for watching. Good question! I’ll see if I can get her to respond...
Hi there, yes you can add your other half to the deeds and to the mortgage, and then yes you can get a bigger mortgage.
Hi Lemuel this interview was really helpful. I myself have explored shared ownership but it seems murky and full of T's & C's!
Hi there! I’m glad you found it helpful. It’s not a very transparent scheme. I hope my videos help make things clearer...
Yes it's a very restrictive scheme and once you're in its very difficult to get out. 🙏
I feel shared ownership in areas outside London is a more appropriate place to go for it. In particular houses vs flats. The shared ownership properties (new and resales) get snapped up incredibly quickly around where I am. I managed to get a new build under shared ownership (3 bed semi detached home) on 40% share. I have no intention of staircasing as this isn’t my future home just a way to get a foot on the ladder) and this way it’ll be easier to sell on due to it being a minimal share. The property I’m in has risen in value by £27,000 in the last 12 months. I’m shocked at the situation she’s gone through and I urge people to do their homework and ensure every I is dotted and every t crossed.
The scheme does work for people inside London as well, my next interview will be with one such person, but you may be right - that it better suited to places outside London - I will have to do more research on this.
You are absolutely right, people need to do their homework and have an exit or long term plan before committing to the scheme.
Thank you for your contribution!
I agree you've got to know what you're getting into. I'd recommend watching Alex's story about how hard it was for her to sell. This is the real kicker, once you're in, it's made impossible to leave. 🙏
@@SelfInvested I’m really impressed by the way at the level of thought put into your replies so I appreciate that, refreshing to see on RUclips. Looking forward to seeing your next video! One thing that may be worth mentioning at some point is that these homes are being sold sometimes before you even get a chance to view them, they’re still that popular. I got extremely lucky with mine as I’m in Oxfordshire and to pick up what I did at the cost I did was really good. Keep up the great content!
Thanks Adam, I appreciate your comment 🙏🏿
I went into the scheme in 2007 @65% and within 2 years I bought the remaining shares. You really need to do your research. My rent and service charge combined were very small at the time so it was easy for me to save money and on top of it my salary did increase so I was able to get a good mortgage and buy the remaining shares. Today I’m renting out the place but I want to sale it as soon as the market allows it. I don’t thing that the scheme is a great long term investment. Get in and out as soon as you can cause the service charge kept on increasing.
Glad to hear it worked for you and I agree with your suggested approach to the scheme!
Thank you for your contribution!
Hi guys. There is something I can not understand. Why can't she sell the house and move on ?
Good question! That will be explained in part 2!
You have a soothing voice ...plus your daughter is cute ☺️
Thank you, Wendy! I'm glad you think so! 😊
Shared ownership has always been a con since day one I am afraid, I work for HA's so know too well. Avoid at all costs.
I think it can work for some people, but it’s important for people to approach the scheme carefully, do their research and consider all their options before committing to anything...
Thanks for the break down. The Information is priceless
You’re welcome. I’m glad you found it of value.
I really wish someone had shared this sort of information with me before I'd bought. Unfortunately there weren't so many reviewers at that point and all the reviews through Google or the developers or housing associations were lovely... How naive I was!
I personally think shared ownership is a big con and the industry needs regulation. My dad bought one many years ago 50%. 5 years after buying it he wanted to move and luckily there were buyers already looking to buy it at the price he had set having spent a LOT of money renovating it. Contour Housing (who he bought through) basically told him to take down the listing from the Estate Agent as he was breaching his contract and could only sell at what Contour deemed it was worth. He ended up losing £20,000 even though buyers were willing to pay the price! To me, the are parasites, nothing more nothing less.
Sorry to hear that, Gareth. Yes, the scheme is very restrictive. You need to be careful and read the terms of your agreement with the housing association.
You do need to get permission before making structural changes, and must give the housing association the opportunity to sell your home as Shared Ownership first...
Having a Shared ownership is a glorify tenant.
You're not wrong! I believe legally you are classed as an assured tenant and have a weaker status in law than ordinary leaseholders!
Exactly!
And without the right to repairs.
Thanks for this video Lemuel! I recently decided to pull out of my shared ownership purchase - there are just too many risks attached (for me personally). I'm now looking for a flat I can buy outright on the outskirts of London, without any of these govt schemes!
I don’t blame you! Buying outright would be my preference, even if it was further out! What areas are you looking at?
These schemes seem like a help to sell scheme as opposed to help to buy personally but it works for some. @Vic Ade You could always acquire a run down house (ie: probate/un-mortgageable ) in London, agree a price upfront, exchange on delayed completion, do the property up to increase its value then go for a personal mortgage and complete the sale. If you do this properly & ensure the numbers stack you can actually pull all your initial investment out (deposit).
@@Only1SapphireDiamond Haha! 'Help to Buy' should be rebranded to 'Help to Sell'! I agree that would be a more appropriate name. The Shared Ownership scheme seems like a gravy train for housing associations to me.
That's a very interesting idea about probate/un-mortgageable homes! Is it something you have done?
It's worth doing your research, but I've found its incredibly hard to find real reviews from people who are still happy after the initial honeymoon period wears off.
It's the big achievement events of staircasing and selling that are most stressful, they are compounded by the current cladding crisis.
I think you've made the right decision to look further out. No restrictions, full ownership and no Leasehold, that's the ideal 🙏
This is so helpful thank you!
You’re welcome! Thank you for leaving a comment 🙏🏿 Are you planning to use the scheme?
@@SelfInvested After your video and watching more of them. Since I want to buy in London, I won't the service charged scared me the most. I plan on buying 1 bed in the open market, will probably have to renovate. let see how it goes.
Awwwwwww!!! She's so cute, love to see this.
Thank you! You might be seeing it more because I’ve got a second on the way and don’t know when I’ll have time to film!
@@SelfInvested Congratulations! She's very well behaved so yes have her as a regular feature.
@@aboutthatlife1418 We’ll see. I genuinely thinking that I’ll have to start recording videos with the family around because I’m not sure I’ll get enough free time without them...
@@SelfInvested I think you should do it, now that most people are working from home people are used to seeing family members in vlogs, pets too. You can always vlog in the car as well, thats another option but keep the great content coming!!
@@aboutthatlife1418 Thank you!
A lot of it is to do with is a lack of knowledge on how the system works when people look to purchase this and also a fault of housing association or governing bodies who are not totally transparent about the scheme. If you know exactly how it works and how it can benefit you then it's the right path to go.
Hey Didar! I don't think you're wrong but I would change your last sentence to read, "If you know exactly how it works and how it COULD benefit you, then it MAY BE the right path to go." Even if you know how the scheme works and how it could benefit you, it doesn't necessarily mean that it's the best or right option for you...
@@SelfInvested I agree, the main reasons to go down this path is if your living situation isn't the greatest combined with the affordability, deposit, if you're single or both just don't have the finances/income for a regular mortgage. To get yourself on the ladder as a short term stepping stone then I would suggest this route otherwise avoid it.
Shared Ownership can do you good if you do your research well.
I always make sure I enquire about the lease length service charge ground rent etc.
Yes, all those points are important. My next interview about Shared Ownership will be more positive about scheme, with some tips about how you can get it to work for you...
I only found your channel yesterday but I have learned so much in the two videos! Thanks for doing this!
You are very welcome! I’m glad to hear it! Are you considering the Shared Ownership scheme?
@@SelfInvested well to tell the truth I’ve been a spendaholic for the last 20 years and now clearing up my life one step at a time, within the next year I hope to be debt free and then save for a deposit for a property. I am worried about the scheme but I live in Devon where stuff is cheap here. I have a couple of friends in shared ownership properties and will ask them about it.
Good to hear you’re on the path to being free of debt! Well done for turning it around! I think speaking to friends on the scheme in your area is a great start. Do they have many Shared Ownership houses in your area? I think the houses are generally better than the flats...
@@SelfInvested thank you for your kind words, one of my friends has a house on a 40% share with no chance to purchase more than 80% which I think is stupid but that’s his choice. The second is in a block and has the dreaded service charge but thankfully it’s not much.
There are not many where I am around the EX16 Postcode area and that’s where I need to be but I have to be debt free first before I even think about it.
I never understood these schemes, but, I believe, if you can’t afford the whole house, then you need to look for a cheaper house, this may mean moving to a different area.
People being obsessed with living in a certain area is why the prices are so high, if you stop wanting to buy in an area you will be helping to reduce demand so it’ll help start driving prices down
I agree that if you can't afford the whole property, then you should buy a cheaper property, but everyone's situation is different and the scheme has worked for some people.
I think each individual needs to research the scheme properly, make sure they understand it, and have an exit or long term plan before committing to it...
@@SelfInvested that’s the problem though, people buy property emotionally, if they fall in love with the property or location they get fixated on buying at all costs.
I get the impression that a lot more people have a sense of regret that they’re stuck with an asset that is difficult to shift on.
As she said in video, most of the people interviewed on their opinion on the scheme have only been in for 2-3 years, not the 10 she and others have been trapped
@@Gingerharry2011 Very true!
But when you can only afford 50% of a property or pay similar in rent, what choice is there? And people need to live where they work, it's flippant of you to say 'live elsewhere', besides house prices are levelling out across the country.
Doing Gods work! Stay blessed
Thank you, ma’am! You too!
Lemuel. Remind people to click the like button. Thanks for your informative videos !
Will do! Especially at the end!
Your daughter is beautiful bro. God bless
thanks bro ;)
The reality of shared ownership is actually depressing :(
Yes, it really can be :’(
@@SelfInvested I'm really grateful to come across videos like this, as I'm in a position as a single parent where I wouldn't be able to take out a full mortgage so have been working towards the goal of shared ownership to get the first step onto the ladder. But its useful to see the other perspective once you have bought in and makes me realise how there is a lot more to think about. Thank you both :)
You’re welcome! With all its flaws, the scheme does still work for people. The purpose of these videos is to help people understand things that might not be apparent from the outset. It’s important consider all your options and work out which is best for you!
I'm interested in her 3 x I come multiplier conclusion? What leader offers just 3 times income ? She can get 5 times income.
She will benefit when house prices go down. Share ownership is great right now because prices are due to reduce.
The shared ownership video by Self Invested is awesome 👏🏻
Glad you liked it! Thank you!
Also another brilliant video thank you!
Thank you, Lala! My pleasure :)
can you do a help to buy version of this with somebody?
It’s coming!
It's common sense. If you are already paying through the nose - mortgage PLUS rent, PLUS service charge and ground rent where are you supposed to find thousands more pounds to "stair case?" Not only that, these properties are usually overpriced. Unless you have a windfall coming in the future avoid at all costs. To buy shared ownership has always been a false economy in my opinion.
You’re right. You can easily get stuck!
Shared ownership can work if you buy when younger, don’t staircase and can afford to stay there for a while. The downside are the extra costs in terms of time and money purchasing plus you are responsible for ALL of the maintenance and upgrades, not just the share you are responsible for so the HA ends up benefitting which is not fair.
Yes, it does seem like a bit of a gravy train for housing associations. Are you a shared owner?
When you extend your lease your it's is valued based on the total cost so you would have to pay for example 20k to extend a lease whether you own 25% or 75%.
Great info thank you bro 🙏🏻🙏🏻🙏🏻
Great to hear! Thank you for your leaving a comment🙏🏿
Property newbie here...
Are you able to sell your share?
Like are you able to sell your share and purchase another property with the profit your share has generated?
Welcome! Yes, you can. It's not a straight forward process, but the housing association can sell your share to someone else and you can use any profit from the sell towards the purchase of another property... Here's my playlist on the Shared Ownership scheme, it should give you a better understanding of how it works: ruclips.net/p/PLUG_SDz9gLQI3lKk_GIxi9Kgn_GeCaDDp
Aw your daughter!!!!! 😁👸
She’s a cutie ☺️
Here contract is legally binding, irregardless of what is stated on a website is deemed irrelevant!
Well, firstly, if the website did state she could staircase in the first year, but this was untrue, then that would be misleading and inaccurate information.
Secondly, the point she was making was that it is difficult to staircase to 100%, even if you start with a 75%, because property prices increase and generally do quicker than salaries...
Is it possible to get a shared ownership owner who purchase a house rather than a flat and understand their experience? Thanks
I will certainly try! I’m sure their experience will be different...
@@SelfInvested Thanks great work. keeping the uninformed, informed. 👍
I want to get a shared ownership ship from help to buy but as soon as I started to look it get news articles and viedos of like warning so what's so bad and worrying with it ?
With all its flaws, the scheme does still work for people. The purpose of these videos is to help people understand things that might not be apparent from the outset. It's not to tell people, "don't use the scheme". It’s important consider all your options and work out which is best for you!
I have a whole playlist on the scheme, here: ruclips.net/p/PLUG_SDz9gLQI3lKk_GIxi9Kgn_GeCaDDp - but you can start with my BBC Panorama video may be: ruclips.net/video/R2les6Yle-E/видео.html
@@SelfInvested so if I don't have a lot of money but I just want a nice house to live is this a good option still housing covers the rent and service charge so all I have to pay is like £300 mortgage a month would you recommend this form my information?
@@cwilson1768 Sorry, but I can’t give you personalised advice. You can watch my videos for general information, but if you need specific advice, you’ll need to engage a professional mortgage or financial adviser. I can point you in the direction of one if you wish...
@@SelfInvested yes please if you can get me someone to speak to that would be amazing
@@cwilson1768 You’ll find his details in the description of this video: ruclips.net/video/wRz_1S9MAUY/видео.html
Great informative video. Personally not a fan of shared ownership but I guess gives a lot of people opportunity to enter the property market.
True. I know it works for some. Thanks for watching!
This came up in my suggestions right at the right time! Have yall playing in my car while I drive to Costco 😄 thank you for this video. Will continue to trust my instincts. 100% ownership only
Our pleasure! That would be my preference if I could afford it!
Very good information and definitely will be helpful to a lot of people the is always pros and cons in this situation, the location you purchase will also make the difference especially if you buy a house in central it will increase every year.
I have one question maybe I’m being stupid but why doesn’t she sell her flat what’s stopping her selling it ?
Wish I saw this before buying my 50% share. two years into my shared ownership I tried to staircase to 100%. The valuation by the housing association (which I paid for) put the property at the original value of £300,000, but when I got the bank to do an evaluation they put the at £280,000 confirming it’s more reflective of the market. This meant to buy the other 50% I would need to cover through deposit the different to meet housing association evaluation. I’m looking at starting the process again in the next few months 🤞this will now be 3 years later.
Was the surveyor you paid for unwilling to adjust their valuation in light of the bank's assessment? If possible, it might be worth getting them to talk to each other if this happens again... Best of luck with it, and do keep me updated!
Thank you for such an eye opening information and we are just pulling out of a property for which we have already paid the reservation fee.
It will be helpful to do a comparison between shared ownership and help to buy scheme based on a fixed income and consider x amount for rent and x amount for the government equity loan after 5th year. Also talk about the 5 year break benefits vs rent please.
You’re welcome! I’m glad you found it useful! Why did you pull out?
I compare Help to Buy with Shared Ownership in this video: ruclips.net/video/kkfCOIj60IM/видео.html
Let me know if it contains the information you’re looking for :)
As a shared owner my experience has been different. Would advise anyone thinking about it to do your homework, it maybe an alternative for some who can’t afford to buy on the open market. I am now in a position to staircase to 100% but not able to do so due to the cladding scandal even though I’m in a block less than 18m.
You’re right, doing your homework is imperative because the scheme is not very transparent.
The scheme has worked for some people and my next interview will be with someone who made it work for them.
Sorry to hear you’ve been caught in the cladding scandal. Deepa is in a similar situation as you will hear tomorrow...
This is such a helpful video
Glad you found it helpful! Are you considering the scheme?
@@SelfInvested I was debating it but I really can't see the benefits. I don't want to get trapped with a property that I can't ever fully own
@@shamsa971 Keep doing your research and crunching the numbers. I’ve done some other videos about the scheme here: ruclips.net/p/PLUG_SDz9gLQI3lKk_GIxi9Kgn_GeCaDDp
Make sure you check everything and understand exactly what you're getting into.
I'd recommend the videos explaining why you'll never staircase to 100% and Alex's interview about selling. These will be key moments with shared ownership that will cause the utmost stress. 🙏
@@deepamistry-longley6664 yes I've watched these now. Definitely helped get a different perspective
I was really looking into shared ownership, but that does not look good.
No idea what Im gonna do
Do your homework and make sure you understand how it works before you commit. It can work for some people and I hope to interview someone it has worked for so they can explain how they were able to get the scheme to work for them and share some tips. Here’s a link to all the videos I’ve done on Shared Ownership: ruclips.net/p/PLUG_SDz9gLQI3lKk_GIxi9Kgn_GeCaDDp
It does work for some. Make sure you know what you're getting into.
Personally this was the biggest mistake of my life. I wish I had this information before I purchased and then I would have saved longer and bought freehold and mortgaged a whole property. But we live and learn. 🙏
I’m currently in the process of applying for a property, but I’ve been having some serious doubts. At the moment it’s just about affordable, but if the rent increases by 2% each year for the next 5 years, it won’t be. The service charges are extortionate in some places and it begs the question as to whether the associations are pocketing the extra cash for themselves. I work in an industry that’s heavily regulated, but it appears the regulations for the shared ownership market are very loose. I don’t see anything changing any time soon under our current government, as they favour the landlords, but hopefully one day someone comes into power who will see that the property market is a sad state of affairs.
I think all you can do is make a decision based on the information that’s available to you. Do all the homework you can and consider all your options.
I do think Shared Ownership is a gravy train for housing associations... In the BBC Panorama episode on the scheme, it was suggested that revenue from the scheme was used to fund other services provided by housing associations... I think this is unfortunate, if true, because Shared Ownership is supposed to a form of affordable housing for the financially less able...
Anyway, all the best with your purchase!
thank you for sharing !
I am quite good with contracts, though I am not saying I am the responsible tenant at all. However, if this lady signed a lease stipulating that at anytime she could purchase the full property, then that is the lease she signed, until she signs something else unbeknownst to herself. No Housing Association could take a website to court and rule out a signed document. Only a judge can throw out a signed contract and that will be because tenant or shared home owner broke the signed agreement. I think there might be a case to be made for the Housing Association to have one thing in contact and another on their website. When you start talking about finding legal advice they get scared, but I think Ms Mistry-Longley has a case because it has led her to the trouble she is in today. Shared ownership also means when the housing association wants to change, upgrade or fix something it is coming out of your pockets at their prices whether you like it or not. If a door cost 200 pounds to repaint you are paying for it in some cases.
Thank you for your contribution, David! I'll make sure Deepa sees your comment. Is there also a case for mis-selling if what she bought was advertised in one way, but sold with different terms?
Tried the link for 2nd part but told video is private???
You’re a bit early! It gets published at 12pm
😱😱
Your daughter... Start 'em young! She's very cute. 🥰
Can I ask, I have recently purchased a 2 bed apartment for 75k (30% of the property) . Rent is £320 per month. Can they increase rent for any reason?
Not as far as I understand. From I understand, rent usually increases annually just above the rate of inflation, but this depends on your housing provider. The cost that usually catches people out is service charge. Many people experience this cost increasing unexpectedly and without good explanation
@@SelfInvested ok thanks for replying.
Shared ownership is a con, it may have been worth buying before 2010 but now not worth it the properties are above market price for the type of properties in the area, and they all are leasehold, even houses which are normally freehold. the new builds have low leases and very high service charges it's absolutely ridiculous. I don't even understand how banks are giving mortgages on these overpriced properties as a bank valuator should never give a mortgage on most of these properties. If anyone is suffering financial hardship I would try suing the bank as if you were to try buying a property outright on the market instead of these schemes they usually undervalue it but in shared to buy it's like automatically accepted meaning they are not accessing the risk and they owe that due diligence to you as their customer
Something needs to change!
If it works out cheaper than renting then I’m happy with a small share personally.
It can workout cheaper than renting and it does work well for people. The key is to make sure you do your homework so you’re not surprised by anything...
@@SelfInvested That’s why I’m only looking at resales. New builds are a total rip-off with the crazy rents and charges. Until 10 years ago maybe it was truly affordable, but not anymore. It turned into a bit of a swindle when it became clear developers were calling the shots, and it all seems unstoppable under the current system of profit profit profit, screw other people. Ideally I am looking at spending more on my monthly mortgage repayments than on the rent. I just want a proper place to live in, a home, at a price I can afford, without all my money going into someone else’s pocket. I don’t care for the glossy brochures from the housing associations. These places look more and more like boutique hotels - all soulless faux everything prefab copies.
I think you’ll find my next video interesting... 😉
@@Mimix476 you are absolutely right about New Build properties. I would also personally stay away from the London house market and Flats. 1) The rate of property prices increase in London in recent yrs, makes it very difficult to save money to the staircase. 2) Flats always seem to have extra fees/ service charges. Most of which you have no control over the rate of increase. Good luck
@@onecgc Thanks. But I can’t / don’t want to move outside of London.
Helpful video for people to consider all aspects of this scheme. But also this makes it difficult for anyone to sell their shared ownership...so unfortunately this lady is making any possibility of selling her own flat, smaller 😑
Thank you! She should be ok because if she’s unable to find a shared owner to buy he home, she should be able sell 100% of it on the open market
I might be making my life more difficult but in the hope of giving others the information I've never had. X
@@deepamistry-longley6664 very selfless. Hope all goes well for you. God bless
interesting. The increasing running costs can really kill you
This is especially troubling for Shared Owners, who can only afford 25% of their home but are responsible for 100% of the service charge and repair costs...
@@SelfInvested i think it's probably better to buy something further out and cheaper but one can own it outright
Yes i agree. If I had this information before I purchased, even I would have waited until I could afford to mortgage a whole property and freehold without restrictions. Further out would have been fine. 🙏
The terms that you are responsible for 100% service charge while owning 75% is onerous!.
Maybe, you can make the case to Competition and Marketing Authority (CMA) to investigate.
You could get a petition to government like those who got trapped by escalating ground rents.
Also, you can lauch a collective legal case under unfair contract laws with other share-ownership owners. There is a good chance you win. Hope this helps. God Bless
It is completely unfair! Imagine those that only own 25% being responsible for 100% of costs! I wonder if there is a case for mis-selling?
@@SelfInvested Yes, maybe that is why I suggested to contact CMA. If you can show they have not put that info (100% liability for service charge regardless of % ownership. I think it will be class-action in legal context. So you may be able to mobilise people in the same boat to look into. Happy to help,
@@nikkion2140 I know someone who is currently exploring this and waiting for a response. Depending on the response received, I’ll make a video on it!
* I meant in their marketing brochure or make it obvious upfront.
Now that prices are dropping, due to the sanitary/economic crisis. Does this mean that having a small share put you in a stronger position going forward? As the small share has more value as the price declines?
For current shared owners, if house prices fall, then the share they don’t own should become cheaper to buy. For those that buy while prices are low, the longer it takes them to buy the remaining shares, the more expensive it will become, but they may benefit from equity growth as the share will be worth more...
The problem in a crisis environment is that not only prices fall but also incomes, hence lenders become stricter. But in theory yes, if your income was stable and prices fell, the remaining share to purchase would be reflective. 🙏
This video just made me make up my mind... " NO SHARED OWNERSHIP "
Yes, it’s important to do your homework before committing to this scheme
Look at freehold, lease, equity loan, retirement and shared ownership
You want me to make videos on these topics?
Its such a scam, disgusting. I hope Deepa can't sell and move on :( 10 years later wow
I hope she can sell and move on as well 🤞🏿
Thank you, we keep hoping 🙏
Do you know whether anyone has had a bad experience with the government help to buy equity 20% loan?
I personally prefer the HTB scheme, but it’s not perfect. I compare the two schemes in this video: ruclips.net/video/kkfCOIj60IM/видео.html
I also plan to interview a HTB user soon, so watch out for it!
She’s so cutie 🥰
Thank you ☺️
Very knowledgeable 👌👏 I appreciate this videos I shared with most people who are thinking about getting this scheme. In my mind the government doesn't have our own (the average people) best interests in mind.
I'm strange brother.. for example free cavity walls insulation I could have done it for free but I didn't because in my mind they will be using unqualified people and cheap materials and very likely cause water to be trapped and dump during the winter. This is just a silly example.
My wife wanted to buy a share ownership in 2013 in elephant and Castle for the same kind of Reason I didn't buy it (it looked to good to be true).
I managed to changed her mind.
I could make lots of example where government intervention has made life worst for us.
These schemes can work for people, but many of them are ill conceived, and many use these schemes when there are other options better suited to their situation. Best thing is not to rush into anything and instead take some time to weigh up your options. I really want to do a video on how people can compare the options available to them… I need to think through how that could work!
@@SelfInvested sounds great !
I'm staying as a private renter. As long as my property is in good condition and rent stays fixed I'm not interested in moving.
I dont blame you!
You don't have to staircase she can sale... for those with a short lease they are at a huge disadvantage
I was thinking that what’s stopping her selling the flat I’m confused
Just buy a place you can afford. Shared ownership is a con and ends badly
I don’t disagree with you, but many people are lured in under false or misleading advertising
I was suspicious from the start about shared ownership, however I still went to a viewing and what they told me never added up. Service charge ground rent and then your bills. Then later on your service charge goes up, it’s never ending. I am buying a share but yet I have to pay 100% of repairs not the percentage I have brought. Don’t forget about the lease 99 years it’s a joke.It’s just a financial trap that will eventually bleed you dry. Stay away from this scheme is my advice.
I don’t disagree with you. I’m not a big fan of this scheme!
Noncens, just sell it and buy what you can afford to own than. All of this is not a problem. In fact you at a win win point.
I think you should watch Part 2 to see why this is not possible...