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
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 😑
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: ru-vid.com/group/PLUG_SDz9gLQI3lKk_GIxi9Kgn_GeCaDDp - but you can start with my BBC Panorama video may be: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-R2les6Yle-E.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...
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'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: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-B-GZhQ0P48w.html
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: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-R2les6Yle-E.html
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.
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
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!
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
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!
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...
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
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...
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...
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.
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 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: ru-vid.com/group/PLUG_SDz9gLQI3lKk_GIxi9Kgn_GeCaDDp
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!!
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.
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.
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 RU-vid. 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!
@@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!
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.
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. 🙏
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.
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 (ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-kwATPO4VcNQ.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 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!
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...
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.
Absolutely hate shared ownership! Would NEVER recommend to anyone. Yes you have a roof over your head but no sense of fulfilment. I have a 50% share and 16 years later still can’t afford to increase my share and you can guess how much my property value has increased over that time! Living in a property that they’re happy to take your rent and mortgage for, they allow you to live there and pay but in their eyes you can’t afford to buy outright even though you’re paying for it. Diminishing lease year on year and have you checked out how much it costs to extend your lease?? Don’t even go there.... They’re happy to say that the value of your house has increased but when you want to ask to release any equity, you are not allowed to under shared ownership so you don’t even gain anything from the fact that your property is now worth more. You’re paying part rent to a housing association but they conveniently treat you as a fully fledged homeowner when it comes to any repairs (or lack of). Unless you have a working partner or such like who can buy with you, or you miraculously get a HUGE wage increase, you are stuck in a hell hole which you can’t progress or do anything with. STAY AWAY FROM IT! ITS RUBBISH
@@SelfInvested yes considered but then I would have to be forced to move way outside of London which would not suit my current situation. That’s the problem. Would have been happy to just stay where I am. This whole situation is a shambles.
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 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 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.
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.
This is true and is a wider issue with the leasehold system which needs reform. Hopefully when the proposed leasehold system changes get made law ( ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-oiF_4K-JJPk.html ), this will improve things for leaseholders...
@@SelfInvestedlf this is the only option l think l will rent forever. Let us know if things change in the future. Thanks for sharing your knowledge with us. God bless you
@@giovanna5593 I will do! There are changes being made which I will cover further... There is the proposed First Homes scheme which sounds like it might good, watch this to learn more: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-CHoXOUSF1IU.html
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?
@@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.
I don't see any point in staircase to 100%. You are getting subsidized rent compared to private rent and its better to either sell your share or do a simultaneous buy and sell to sell the entire property on the private market. Also, another point to make is, if the apartment went down in value, you are somewhat insulated as you don't own the whole amount so as a whole shared ownership shouldn't really be seen as an investment but just as a subsidized rent which you put a deposit down for.
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
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...
Shared ownership is a huge trap designed to fool people into thinking they can afford something they cannot. If you could afford a 75% LTV on a trendy london flat, you wouldn't need this sort of scheme. Living within your means is becoming more rare as time goes on. Any upside through asset growth is recorded when you buy your share back from the Gov - therefore you waste years of your life and are no better off than renting. It only works if you keep the property until you die, which is unlikely in a 2 bed flat in trendy Southwark.
It is legal, unfortunately, and unfair. The government has announced some changes, but the new model doesn't address the true issues with the scheme...
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...
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?
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 🙏
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...
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.
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: ru-vid.com/group/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. 🙏
Why can’t you guys just move out of London and invest in a good car to commute, or an annual season ticket, or get a work transfer or get a new job locally. These London flats are very small anyway, not a place to raise a family. My cousin moved to Manchester and her council house with the right to buy is humongous.
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: ru-vid.com/group/PLUG_SDz9gLQI3lKk_GIxi9Kgn_GeCaDDp
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!
@@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!!
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!
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 ?
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%.
It is a trap system and the SO tenants are the money bags who offset the traditional renting tenants that don't pay their rent or service charges. The HA know the SO are locked in cause of the mortgage so the rent being paid is guaranteed regardless. SO tenants get the worse deal. Worked in a HA for over 18yrs and know all the nonsense of that system. Wouldn't advise anyone in London to buy one or you'll be trapped forever and your not even allowed to rent it out. All the detail is in the fine print tenancy contract that the buyers don't read it to understand it or have a solicitor who understands this property type and the HA reps usually tend NOT to understand it or explain the conditions as the HA reps have lost all the detailed knowledge from high staff turn over plus they want to secure the sale. The HA reps knows barely anything. Always read the tenancy agreement which is the contract before you buy, visit the property before you buy both day and night as I could tell you some stories. Avoid the schemes with too many HA tenants as if they trash the place or break the lifts etc they put the price up on the Service charges for the SO tenants to pay, they get the rawest deal always. Avoid new builds with new or latest technology as if maintenance or repairs are needed they have to get that costly specialist repair done and the SO will be charged the extra in service charges for it or an extra charge which does not always come under the building guarantee. Avoid properties with lots of grass and lifts, ponds as you can guarantee high service charges over the annual RPI...
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!
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.
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,
@@shamsa971 Keep doing your research and crunching the numbers. I’ve done some other videos about the scheme here: ru-vid.com/group/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. 🙏
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: ru-vid.com/group/PLUG_SDz9gLQI3lKk_GIxi9Kgn_GeCaDDp
