Londoners are very passionate about living in London - and rightly so. You should be able to buy in the community you grew up in. It's not a London centric issue it an affordability one, people are pushed out left, right and centre. You made very vaild points. In my humble opinion shared ownership in the context of London is good for potentially reducing costs, eventually selling your share then moving out of the city. I would also urge those that are turning their nose up at commuter towns to take a look before you get priced out! I bought my home in Luton 3 years ago, if I were to buy it now (on the salary I had at the time) I would not be able to afford it. It takes me 23mins to get into Kings Cross and the trains are 24hrs (apart from Sat night, I learnt that the hard way lol).
I agree with you. It's very emotive when discuss moving away from the areas we call home but as I said in the video, I would have rather done that if I needed to for exactly what you said in terms of moving to Luton. I do think there are some people who could benefit from shared ownership but for me it just wasn't the best option as I am a fairly risk averse person. I know a few people who have sold their shares and bought something else as you said but I also know some people who have ended up in a pretty bad situation. Thank you so much for taking the time to watch and leave a comment. I've just had a look at your channel and looks right up my street so I've subbed and look forward to consuming the content!
I 100% agree with on the communter towns outside of London especially Luton, Leagrave and Bedford you can get a lot for your money in those areas. Next time get the Greenline bus service on Saturday its 24hrs 365days. ❤👍🏾
@@AdultingbyLola hello, thank you for the video! Please could you give a few examples of bad situations people may get into? My husband and I are seriously considering it because we live in London and it would just be impossible to get a regular mortgage. We are not looking to get 100% or staircase or anything for a lot of years, we just don't want to be wasting so much money on rent, it would be a way to save some more money for a few years. But I'm seeing videos warning people against it so now I'm worried!
My partner and I just pulled out of purchasing a SO property this week. We have been in rental for many years now and viewed it as our only option to get onto the housing ladder. However the further we got into the process, the more things came up which didn't sit right with us, we ended up feeling like we might of ended up trapped in a property which in time would no longer be an 'affordable' option to us. On paper yes, all of the figures worked out, but when we factored in rent - which we were told would only ever increase, a service charge which again would go up and which the housing association couldn't fully explain what it covered, full responsibility for all repairs for a share of the lease, the housing association admin fees and further costs to staircase etc in the future it really didn't feel like it was the right option for us. I totally appreciate that this does work out for some people, but in our circumstances we don't feel it is right for us. We are going to keep saving and hope our forever home is out there somewhere x
Thank you for the clarification. I have been doing my research and I came up with with the same conclusion as yours. I made up my mind, I will keep saving until I can afford 100% of the property.
you made the right decision, no matter how desperate people are to buy there home the shared ownership scheme is no good for anyone in the long run. this will turn out to be the next "endowment mortgage" scandal. don't do it people. use your first time buyer cherry on "equity loan" if a standard mortgage is not an option. don't own a room, own the house.
I have just subscribed! Your way of explaining things is really clear and straight forward! Thank you very much for this helpful video. My husband and I are planning to buy a house and we're thinking on Shared Ownership or Help to buy, but a friend of mine told me that it is not advisable due to the costs increasing constantly and sent me your video to have a clearer view on what it all involves. Thanks!
Just to add: I didn't go with shared ownership in the end. It's unnecessarily expensive. Friends and family all warned me against it; including those who are doing it at the moment; they would turn back the clock if they could and not do it.
This video was extremely helpful for me because I was thinking about shared ownership and have been researching but this video really helped me make my mind up it verified everything I thought about this scheme.
Great video! Loved how clear and informative this was. Iv done some research around this but this has really put everything into perspective. New subbie here ❤
Thanks a lot for this Lola, perfectly explained and really useful! Desperate for my first home but nothing about shared ownership has ever appealed to me. Thanks again
No problem. I'm glad you found it helpful. All the best on your journey to home ownership! Please let mw know if you have any questions I may be able to help with x
Good call. Leasehold are bad enough however a shared ownership compounds the negative effect. Rent + mortgage + admin works out to be more than rent and your trapped. Staircasing is a nightmare. They dictate the price based on the new current price.
Thanks for a fab video - I'm going ahead but you are absolutely right it is up to you depending on your personal circumstances if you are happy with the cons and READ YOUR LEASE.
Thanks for watching and yes, absolutely it has to be right for YOU and you only. There's no one size fits ll approach. Congratulations on your decision :)
Also, great tip about going in at higher percentages if you can - I'm starting at 50% and I actually anticipate a housing crash post-Brexit and associated with the post-lockdown economic recession. This is good for S/O buyers, because it means that although you will be in negative equity, the value of your home in about 2 years will be lower -- if you plan on moving in the next 2-5 years, terrible news. But if you plan on getting to 100% in the next 2-5 years, you can actually make the recession work for you by paying LESS for the next 50%. The downside is that lending is MORE difficult in periods of recession so make sure you've got a whopping big deposit saved when you go for your next portion. Just a tip there for anyone going ahead :D thanks again for a great vid!
Great video but just wanted to clarity the point ‘once you own 75%, there’s no more rent to pay’. This is not correct, I think you’re confusing the over 55 & older people’s shared ownership where you can only buy a maximum of 75% so you don’t pay rent on the remaining share. Consequently, they will never fully own that home entirely. With the standard shared ownership, you will pay rent on the remaining shares you don’t own which would be a subsidised amount and there’s usually the opportunity to staircase to 100%.
