The Pro's and Con's of Shared Ownership Properties - First Time Buyer Secrets

Подписаться 24 тыс.

Просмотров 126 тыс.

50% 1

It is really important to know The Pro's and Con's of Shared Ownership Properties - Watch this BEFORE you look for Shared Ownership Properties!
Shared Ownership Properties can be an excellent alternative if you can't yet get onto the property ladder the traditional way. However, there are pro's and con's of shared ownership properties.
In this video I provide the pro's and con's of Shared Ownership purchases and a "Must Know" list you can download and check when buying your shared ownership property and obtaining your shared ownership mortgage. You MUST check with the housing association - Do not get into a shared ownership deal until you know everything within the terms and conditions.
*** Show Notes, and Resources ***
Make sure you know:
- Monthly rent
- Ground rent
- Service charges
- Can you Stair case ?
- Do they work with all mortgage lenders ?
- New build have different mortgage rules to traditional properties, does your lender allow shared ownership ?
- Obtain a MOS (Memorandum of sale) after purchase and the shared ownership documents
- Double check the mortgage lenders criteria as flats can require more of a deposit than houses
---
**MORTGAGE CHAIN LTD**
Mortgage Chain Website - www.mortgagech...
Book a free no obligation chat - link.alexkerr....
Mentorship Program - First Time Buyer Expert
link.alexkerr....
---
*SHOW NOTES & LINKS**
Check My File - Download Free Credit Report: link.alexkerr....
Contact: www.mortgagech...
Subscribe to my channel: www.youtube.co...
*NEW! Download FREE First Time Buyer Pack
link.alexkerr....
QUOTING PORTAL (Solicitors, House Insurance and Surveys)
www.mortgagech...
---
**CREDIT FILE CHECKS**
CHECK MY FILE - This is step 1 as a First Time Buyer. Check your credit file!
Free Credit File Check. Check your credit score from the outset! Use checkmyfile as they provide reports of all three credit file agencies the mortgage lenders use to credit score you, on one file (Experian, Equifax and Transunion)
checkmyfile offer a 30-day free trial which is then £14.99 a month thereafter and can be cancelled at any time.
Check my free credit score now:
link.alexkerr....
Correct Errors on Your Credit File:
Contact Experian: ins.experian.c...
Contact Equifax: help.equifax.c...
Contact Transunion: www.transunion...
Apply for Voters Roll: www.gov.uk/reg...
---
**BOOK A FREE CHAT**
Book a Free, No Obligation Call with Alex Book Now:
link.alexkerr....
DISCLAIMER: This video and description contains affiliate links via the above checkmyfile, Uswitch and credit ladder links, which means that if you click on one of the product links and purchase the product, I’ll receive a small commission. This helps support the channel and allows us to continue to make videos like this. Thank you for the support!
---
BAD CREDIT ?
Download our FREE Adverse credit mentorship program below:
link.alexkerr....
---
FACEBOOK GROUP For First Time Buyers:
/ firsttimebuyeruk
Say hi on social:
Twitter: / alexkerrmortgag
Instagram: / alexkerrmortgage
Facebook: / alexkerrmortgage
TikTok: / alexkerrmortgage
Contact: www.mortgagech...
---
⚡QUESTION OF THE DAY: Are you considering a shared ownership mortgage ? Let me know! 👇👇👇
---
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
#FirstTimeBuyerUK #sharedownership #alexkerrmortgage

Опубликовано:

30 сен 2024

Ссылка:

Скачать:

Готовим ссылку...

Добавить в:

Мой плейлист

Посмотреть позже

Комментарии : 457

@alexkerrmortgage 5 лет назад

⚡QUESTION OF THE DAY: Are you considering a shared ownership mortgage ? Let me know! 👇👇👇

@amitkaushik5841 4 года назад

Hi, thank you for the video and information. My question: Is shared ownership better than help to buy scheme since it helps to give you 20% interest-free for 5 years. FYI: I am considering a new 3-bed build property to buy (£170k) with its maximum (75%) ownership. However, on the other side, I have little better features (area, toilets) achievable from £195,k. I can go for either of them but help to buy would allow me to be rent-free or interest-free for 5 years. I would be thankful if you could advise on this matter. Cheers!

@lamastolu 4 года назад

Yes I am

@alexkerrmortgage 4 года назад

LAMAS TOLU excellent! Have you found a property or at early stages ?

@lamastolu 4 года назад

Early stage Im looking for property outside london (like 45min drive to London)

@alexkerrmortgage 4 года назад

LAMAS TOLU this is a good place to start www.sharetobuy.com/

@Tdr-jv2nc 7 месяцев назад

Was the only way me and my wife could get on the ladder and I’m so pleased we did. We now own 100% of our property

@usables4028 3 года назад

I dont understand one thing and I will try to explain it. I was looking for home but where I live its too expensive and I can't afford it so let's say properties are 200k and I can get only 100k mortgage. Lady in the bank said to me that I can go through shared ownership but here is what I dont get it.. 200k mortgage for example would be 1k every month to pay which I can easily afford, but bank can give me only 100k because of me earnings. Shared ownership - OK u get 100k mortgage which will be 50% value of house but rest I need to pay rent so it will come 1k per month anyway!! So why they can't give me that 200k mortgage. I will pay the same money every month anyway. Weird

@alexkerrmortgage 3 года назад

Hi Cheryl, thanks for watching the video. Do you normally find that the combined mortgage and rent payment will be cheaper then when compared to the full price of the property if you had a full mortgage. I hope this helps, Alex

@ssmufc9941 Год назад

I’ve always wondered this! I actually bought 50% and am in the process of buying the other 50% share in the coming weeks. Give or take, my monthly costs remain pretty much the same. On SO my mortgage was a higher interest rate than a normal full mortgage, hence making the cost pretty much the same. Why I couldn’t get the full mortgage in the first place with access to the most competitive rates, just makes no sense to me.

@someoneelse1904 Год назад

Presumably it’s to do with the amount of risk the lenders assume by lending £100k vs. the full £200k.

@WhyMedia112 3 года назад

Legend 👌🏻

@lloydfrancis9149 4 года назад

What a Dumb ideology Shared Ownership why on Earth would anyone do that???

@alexkerrmortgage 4 года назад

I think the general thought is that it is better to own a % than rent as a tenant, as renting you own 0% and shared ownership you would own at least 25% and therefore benefit from any increase in value (equity) and also have the option to purchase further shares, until you reach 100%. It can be very useful who can not get onto the property ladder going the traditional route.

@mohammedkhan5344 4 года назад

The rent should also be paying off the the remaining share with some profit, but the new builds are greedy and are a dumb idea

@jeremiahkool1 4 года назад

@@mohammedkhan5344 You don't get owt for nowt in this world.

@mohammedkhan5344 4 года назад

@@jeremiahkool1 it's not nowt, if you knew then you would be surprised

@jeremiahkool1 4 года назад

@@mohammedkhan5344 It's not nowt but you are paying rent on the part you don't own in the same way you would pay rent to a private landlord for a property (that you don't own).

@silverhawk923 3 года назад

I know this sounds cliche but thank you for giving me this advice. Given the impact it can have, it is not a light topic. Thank you

@elecrticgamer 3 года назад

I second that I'm 21 years old moving out and I feel so lost on these subjects

@megan1445 2 года назад

@@elecrticgamer I third that

@megan1445 2 года назад

@@elecrticgamer To be 21/22 and thinking of this is just fantastic tho. Keep it up!

@EllaHAHS 4 года назад

Brilliant video I am currently studying my CeMap at the moment so this is helpful for revision purposes! These are some other disadvantages that came to mind: • the property can be harder to sell the later down the line • stair casing can be costly and can involve payment legal fees and other costs each time • a lot of housing associations only allow you to buy them out 10% at a time when staircasing!

@alexkerrmortgage 4 года назад

Thanks Ella! Some really great points there you make and great you are studying CeMAP. Thankfully the government will be reforming the model and making changes such as being able to purchase shares in 1% increments, which will be great for first time buyers! Government link here with more info - www.gov.uk/government/news/changes-to-shared-ownership-to-help-more-people-get-on-the-property-ladder#:~:text=The%20government%20will%20review%20a,to%20buy%20in%201%25%20increments.&text=People%20use%20shared%20ownership%20to,subsidised%20rent%20on%20the%20rest.

@gmaromusic 4 года назад

Im Canadian living in the UK for 10yrs now looking to get on the ladder with my partner. She brought this option up and this video makes me understand what this scheme is all about. Thank you so much!

@craigr306 3 года назад

go back there is nothing in this country but rain and its snows over there (this is meant with good intentions )

@karjuntsang6365 3 года назад

Ground rent is usually payable when you own 100% of the property unless stated by the Housing Association of their properties. Shared ownership is a massive help for first time buyers getting onto the property ladder for the first time

@alexkerrmortgage 3 года назад

Thanks for sharing that with us, appreciate you watching and the comment!

@karjuntsang6365 3 года назад

@@alexkerrmortgage just like to share my experience and knowledge and help😊🙌

@oseprimrose9976 4 года назад

Thanks for Sharing, very informative! I have a question regarding stair-casing, why do you need to buy more shares when the rent/mortgage ought to go towards the ownership?

@alexkerrmortgage 4 года назад

Hi Oselzore, thank you for your question. With shared ownership you part own the property. Your payments go towards reducing your mortgage balance and the percentage you do not own, you rent that part of the property from the housing association. So for example if you owned 50%, you would pay a rent for the remaining percentage. So shared ownership is seen as better than renting, as with renting you own 0%. Does that make it clearer ? Alex

@chiccabee8840 4 года назад

*YOU Sir.....are one of THREE most helpful. I love how you "speak/explain" in plain simplified English & not housing jargon lol* *I do have many questions though.....*

@alexkerrmortgage 4 года назад

Thank you for your kind words! And fire away with your questions ?!

@NaomiandJack 5 лет назад

Great video. But shared ownership sounds like a terrible idea.

@alexkerrmortgage 5 лет назад

Naomi and Jack thanks for your comments. A lot of people share this opinion, especially on a long term basis. However there are plenty of good housing associations and the biggest positive for shared ownership is that it can help people on to the property ladder where otherwise they would not have had a choice. Always make sure you can buy a bigger share later on is my biggest tip. This is called “stair casing” 👍🏻

@NaomiandJack 5 лет назад

@@alexkerrmortgage I agree it's better if you have the option to buy the rest. But great explanation of the topic.

@alexkerrmortgage 5 лет назад

Naomi and Jack thank you very much, very kind. 😀

@ggggg895hungary 4 года назад

@@alexkerrmortgage hi. Why would it be a bad idea for longer period to own shared ownership property ? Maybe for some people it's enough to own 25% of the property, pay off the mortgage and just pay the rent and the charges like 300 pounds a month . This way it's still much cheaper than to rent a property where you pay more and you don't even own anything from that house. Thanks in advance for your answer :)

@alexkerrmortgage 4 года назад

@@ggggg895hungary Hi G! Only if you do not purchase more shares later is it not as effective as it could be. However with the governments reform of shared ownership, you will be able to buy shares in 1% increments, rather than a minimum of 10%, which in most cases in the minimum you can purchase, meaning some people can't afford that, and never purchase further shares. However with this new reform mean's longer term will now be a better option as purchasing an extra share will be much easier. Does that make sense ?! Alex

@SCD4 4 года назад

Just a correction. We purchased a property on the OPEN market. But the Housing Ass had to vet the property. 1 condition was it had to be newish...Second I stair-cased from 50%-100% with no fees......yep no fees. It was a promotion. Maybe they wanted to reduce their commitment.

@oanamanole9005 3 года назад

You are so kind and nice to people here. I can't afford to buy yet, but I will subscribe because I am impressed with how sweet you are with random people trying to get some free advice 😅

@alexkerrmortgage 3 года назад

Thank you so much! I'm glad you are getting value, and thanks so much for your kind words it really is very nice of you and means a lot!

@Secret-sw8ih 3 года назад

Thank you so much for this video. Today I started to look at shared ownserhip again & found my ideal property in my ideal location, so I made an enquiry but I know there's so much more involved. So, I will watch this again & take notes & download the attached. Thank you Alex!

@alexkerrmortgage 3 года назад

Thanks very much! Good luck, if you are going it alone! We are here if you need us, just get in touch. Good luck what ever direction you decide!

@tonybroadbent2993 4 года назад

So if you want to staircase from 50% ownership to 60% for example, is a new mortgage needed, the current mortgage extended in terms of years, or the monthly payment adjusted?

@alexkerrmortgage 4 года назад

Hi Tony, the best time to get more shares would be the point your current mortgage deal expires or if the lender you are with allows you to do a further advance to buy extra shares... We always try and recommend lenders that work this way.

@johnmcneill4432 3 года назад

Great content but do have one criticism, 6:50 you talk about how much the service charge is, but then you just go on to say that there is a service charge... I respect that it may be different for different areas but a ball park figure would have been better than none in my opinion.

@alexkerrmortgage 3 года назад

Hi John, thanks for watching and the feedback. Let me see if I can add something to the notes below to make that clearer. I am planning on doing a new one in Jan 21, so will be sure to make that area clearer. Thanks for the feedback and take care 🙏 Alex

@secreteobsession3584 4 года назад

Just a quick question when I finish paying off my 25% worth on the property do I still have to keep paying rent or do I stop op up or do I have a choice to keep pain so I can pay off the house and have it as 100% of my own.

@alexkerrmortgage 4 года назад

Hi Cassandra, thank you for the question! You will always pay rent on the share you do not own, up until the point you own 100%!

@lucyroberts1209 4 года назад

Say we get a house for the 50% shared ownership. When we go to sell a few years later if we haven't staircased, would the 50% be taken from the sale price or the original amount of the house price, Really hope that makes sense aha

@alexkerrmortgage 4 года назад

Any increase in value will be 50% yours!

@kyomixox2061 4 года назад

Hi and thank you for your useful videos. I'm thinking about doing shared ownership , but wanted to know is there a way of roughly calculating how much my mortgage, rent and service charge will be?

@alexkerrmortgage 4 года назад

Hi Kuomi! Please see this video on this subject :-) ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-raHv6xnO8lE.html

@masyaf897 3 года назад

Do you still have to pay rent and service every month even after you finished paying off the mortgage?

@alexkerrmortgage 3 года назад

You would only start paying the rent once your own 100% of the share.

@masyaf897 3 года назад

@@alexkerrmortgage Thank you

@ibbyz5557 4 года назад

Seriously thank you. Made it more clear in my head about shared ownership

@adamfinnigan6303 4 года назад

Worst thing we ever done buying a shared ownership flat. When we first moved in the rent and service charge was very affordable. Within 2 years the rent and service charge went up by £200 pcm. And whenever you call up the property management they just say the money will go up by minimum of 1% every year. I'm estimating within the next 5 years this property will be deemed unaffordable for us. Just be aware it starts off great but inevitably your bills will sky rocket

@alexkerrmortgage 4 года назад

Hi Adam, thanks for sharing. Who is the housing association ? Alex

@olivernagy7217 4 года назад

Hi Alex, Great video!! We bought a 50% shared ownership flat and planning to buy another property for investment to rent out. Is it possible to buy an investment property if we bought our first with help to buy and shared ownership? Many thanks for your answer.

@alexkerrmortgage 4 года назад

Olivér Nagy hi Oliver, yes that is fine! Not an issue at all. I actually have it on the list to do a video for a first time landlord. The deposits are a bit bigger. Are you aware of that ? Alex

@olivernagy7217 4 года назад

alexkerrmortgage Thank you so much for your answer Alex! Really appreciate it. Also I didn’t know about the higher deposit so thank you for that as well!

@GinnyLazer 9 дней назад

Thanks for the analysis! 🔍 I have a quick question: 🤷‍♂️ I have these words 🤨. (behave today finger ski upon boy assault summer exhaust beauty stereo over). Can someone explain what this is? 😅

@alexkerrmortgage 9 дней назад

@@GinnyLazer what do you think they mean ?

@user-tw7bs9on7c 4 года назад

Hi Alex, Im considering a shared ownership mortgage. I am committing myself to work in an area for around 2 years minimum probably closer to 3. The reason i am considering shared ownership even though i can afford a full mortgage and deposit is that I do not want to commit to buying a full at this moment in time and would prefer as much flexibility as possible regarding my future career. I do not know which path to start on can you provide any advice? Thanks

@alexkerrmortgage 4 года назад

Hi Tom, that sounds like a sensible plan! There is quite a lot to it. We offer a free analysis call to go through this as part of our service. If this is of interest please call my team and ask for an analysis call on 03333446869 - Look forward to helping if thats something you are interested in. Alex

@lukeditrana5722 2 года назад

Hey dude, Did you ever follow up on this plan?

@nafizhaq4554 4 года назад

Man thanks for your content 👍

@Vanguard-Six 3 года назад

Hmmm when I bought my shared ownership house 10 years ago they only own 26% of my house.

@alexkerrmortgage 3 года назад

so you now own 74%, you have done well!

@cedms 6 дней назад

Thanks for posting about such important topic. Five years later, is there any relevant change we should be aware of?

@alexkerrmortgage 3 дня назад

Thanks! Here is a more modern one which is still relevant - ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-IqPW7rOdtNI.htmlsi=R65lUi-Bkw5RrjBA

@paf1966 3 года назад

Both partner and I are early fifties.. wondering if we are now too old

@alexkerrmortgage 3 года назад

It would mean a shorter mortgage term so that would need to be affordable. Email me your incomes and outgoings and I will take a look. alex@mortgagechain.co.uk - Thank you for watching!

@HarmonizedChaos 3 года назад

I’m looking to buy my first property. Given current situation ...I think I am on hold now. My annual income is low and I am single, which is not helping me either. My Question: which % is the best to start? I am aiming for 50% minimum... and also, is it possible to buy out the property entirely after xxx years? Thanks, good video.

@alexkerrmortgage 3 года назад

You can "staircase" which means buying more equity. In regards to a share you can buy, you would need an affordability check. Maybe use a lenders affordability calculator to give you an idea.

@Disconn3ction 3 года назад

My local area is undergoing a regeneration project and is expecting 100s of homes in the coming years. I saw shared ownership was going to be an option but had a misunderstanding of what it meant. Your video was so helpful - I feel more confident now.

@alexkerrmortgage 3 года назад

That is awesome!

@madams989 3 года назад

Hey, thank you for the video. What happens when you come to sell? Do you just advertise your share to other potential buyers as normal on for instance Rightmove? And is it harder to find buyers because of this? Thanks!

@alexkerrmortgage 3 года назад

Hi Mike, selling is very similar to a normal property sale and yes it would go on all the portals. The housing Association may help or they may have estate agents associated with them! Double check with your housing association. Alex

@June-gi1wk 3 месяца назад

Can I buy 50% share on my name And After couple of years, can I get mortgage on my wife name and can I buy rest of the 50% from the housing association?

@alexkerrmortgage 3 месяца назад

Yes this should be able to be engineered… As long as the housing association is happy for your wife to come on then the mortgage can be doable with a transfer of equity. Feel free to get in touch if you need help with this at any time.

@FemaleLead1 3 года назад

Thank you Alex for helping first-time buyers. It makes a bit more sense now

@alexkerrmortgage 3 года назад

Anytime. Any questions let me know. Alex

@sunny-xu6vz 2 месяца назад

Hello Alex. How can I reach you.

@anisa8733 4 года назад

I like the calm way you explain everything! Thank you!!

@alexkerrmortgage 4 года назад

Anisa Trs Thank you!

@jamesbeerobin8528 3 года назад

Hello dear, how are you doing today. I like to be your friend if you don't mind. Please do not be mad at me ok. I was checking your profile picture so I see you and like you

@chiccabee8840 4 года назад

*THANK YOU SO SO MUCH for you videos.....absolutely appreciate you!* I DO apologise in advance if my questions are longwinded & somewhat....daft!! 😜 May I ask kindly: 1. Is Shared Ownership therefore isolated to SOLELY new builds? 2. Or does it extend to "second hand" homes too (implications if so)? 3. Does the fact that we'd be First Time Buyers in our 40s & 50s go against us in any way? 4. I see you've provided an email address in one of your threads...is this for free impartial advice from you directly? 5. What exactly is Stamp Duty & is it applicable on Shared Ownership? 6. Is Shared Ownership the same as Shared Equity? I'm so sorry for the 109 questions lol.....just needing to be *absolutely* sure & educated on this..... as this is a MASSIVE investment.

@alexkerrmortgage 4 года назад

Is Shared Ownership therefore isolated to SOLELY new builds? No, this is any shared ownership property, both new build and second hand properties available. 2. Or does it extend to "second hand" homes too (implications if so)? Yes. Implications... Same rules apply as new builds. 3. Does the fact that we'd be First Time Buyers in our 40s & 50s go against us in any way? Only the maximum length of term you can have (Until age 69 max or 74 if you have a private pension) 4. I see you've provided an email address in one of your threads...is this for free impartial advice from you directly? Yes - alex@mortgagechain.co.uk 5. What exactly is Stamp Duty & is it applicable on Shared Ownership? This is a government tax you pay for buying a home. It only applies to the share you buy and if that share is under 300k (or 500k until March 2021) you have zero stamp duty to pay as a first time buyer. Here is our stamp duty calculator for reference: mortgagechain.co.uk/stamp-duty-calculator/ 6. Is Shared Ownership the same as Shared Equity? No, shared equity is more a reference to the help to buy equity loan. I'm so sorry for the 109 questions lol.....just needing to be absolutely sure & educated on this..... as this is a MASSIVE investment. No problem! I hope this answers your questions, any more let me know! :-) Alex

@chiccabee8840 4 года назад

@@alexkerrmortgage Cheers. I've since purchased a home.

@fernandolopez2289 4 года назад

Het Alex, great video! i loved it. I dont get who owns the other part of the asset. Is it a construction company or the goverment? Thanks

@alexkerrmortgage 4 года назад

Fernando López thanks Fernando! the housing association ! That’s who you rent the part you do not own from. Does that make sense ? Alex

@ryankelly5524 4 месяца назад

Unfortunately shared ownership is all most of us can afford.. so pros and cons don’t matter we haven’t a choice.

@alexkerrmortgage 3 месяца назад

Sorry to hear that, but it’s far better than renting and is a good starting point.

@TykitFleine 2 года назад

Thank you for this video! One question please, so if you go for a property of 25%, you're paying the mortgage but also rent. Does the rent go towards the remaining 75% of the property? Or is the rent going nowhere? This is the part that confuses me as I'd like to know whether it goes towards the total payment of the property or whether it's just for residing there while making payments. Thank you very much!

@alibaba3812 2 года назад

Your renting at a discounted price because you own part of the property. The rent is not paying off the 75% because someone else owns that your just paying them to live there.

@alexkerrmortgage 2 года назад

The mortgage payment will reduce the balance on the share your own, the remaining share you pay your rent to the housing association, so the housing association benefit from this element. I hope this makes sense, any more questions please let me know.

@gracelove6008 2 года назад

@@alexkerrmortgage So, when can be 100 % ownership and methods?

@Simon-uo3pz 4 года назад

Another massive thing to consider are premiums which can take you overall upfront costs so much higher

@alexkerrmortgage 4 года назад

Thanks Simon.

@Mrcaen 4 года назад

Can we rent house bought through SHARED OWNERSHIP ?

@alexkerrmortgage 4 года назад

Hi Mrcaen, I very much doubt it, but, I would check with the housing association to see what their rules are.

@PeterParker-hf8ok 4 года назад

i'm interested to find out. let us know!

@bigdreamers3484 Год назад

Great information. Thanks Alex !

@charbradbury4392 3 года назад

I'm a therapist would I be able to work from with shared ownership ? Or would I be limited and classed as a tenant?

@alexkerrmortgage 3 года назад

Hi Char, of course, there are no restrictions to that working sector. As long as income etc works out then yes!

@katietompkins4203 4 года назад

Hey! Thank you for the video, really useful. My partner and I are looking to buy a house in about 4 years time, at the moment it only seems like we can go shared ownership. We have been looking round and seeing what the prices are now and it works out to be around £700 each, inc. bills, rent and mortgage. We would like to staircase too. We have found an area good for us both, would you recommend we go shared ownership starting at 50%, or rent? Renting seems so expensive for what you get, thanks.

@alexkerrmortgage 4 года назад

Glad it was helpful! I always say that shared ownership is better than renting.... as owning 50% is better than owning 0% when you rent! You have a mortgage and should be creating some equity for yourselves so you can buy outright later on. Good luck! Anymore questions let me know. Alex

@katietompkins4203 4 года назад

alexkerrmortgage that’s true - thank you very much :)

@Mrcric134 3 года назад

Thanks for sharing this. Never would have thought to ask some of these questions. I'm living in Scotland and looking to buy a property with the help of the Scottish government First Home Fund scheme, my main reason is that it reduces the monthly outgoings and so with savings built over time i can buy out the share owned by the government. I haven't read much things on the scheme that would ring any alarm bells but am hoping to get something in a decent school district.

@frankienew6966 3 года назад

We've gone with help to buy instead of shared ownership. I know not everyone can do it. My friend does SO, owns 40%. Her interest rate on her mortgage is 4.5% and she's only paid £780 off her mortgage in 3 years. Our mortgage with HTB is 1.7%. I didn't know SO mortgage rates were so much higher!

@alexkerrmortgage 3 года назад

It all depends on your circumstances, there are lower shared ownership rates as well… Thanks for watching, Alex

@stevo091 4 года назад

Hi Alex, I'm interested in a shared ownership in Essex. Linden housing homes said. That I can only do mortgage though the company, they recommend. Thinking because they would charge a higher rate. Is this correct?. Thanks.

@alexkerrmortgage 4 года назад

Hi Stevo, it is not a requirement to use there brokers! Hopefully they will not charge higher fees but feel free to get in touch if you want some options... Where is Essex are you ? I am Chelmsford.

@stevo091 4 года назад

@@alexkerrmortgage Hi Alex cheers for the info. Will search other alternatives. From Colchester.

@balasuriyage 4 года назад

topman Thanks for the good advise

@alexkerrmortgage 4 года назад

thank you :-)

@abbaroonie1625 5 лет назад

Hi....is it true that all shared properties are leasehold? Thanks for the vid but I would never touch a shared ownership, there are many more cons than you have listed. Its a win win for the HA

@alexkerrmortgage 5 лет назад

Abba Roonie hi Abba. Yes that is right, you pay a rent on the share you do not own, the Housing Association are the freeholder. The reason for making clear the disadvantages is purely as a “approach with caution” message as some housing association rules will be more favourable than other’s so be sure to check. But I am of the opinion that shared ownership can be fantastic if used as a stepping stone if you find a good Housing Association who have fair terms. It’s not a good idea as a long term plan, which is the main reason the downsides are highlighted. I hope that helps.

@SCD4 4 года назад

If you buy a new flat and live there for 10 years. You still may have 90 years on the lease maybe........no big worry in my view. Oohhh and I had no lease on my 3 bedroom home.

@haisleigh 3 года назад

If you put down a higher deposit than what’s required, does it make your rent cheaper?

@alexkerrmortgage 3 года назад

A higher deposit would make the mortgage cheaper, buying a bigger share would make the rent cheaper. Does that make sense ?

@haisleigh 3 года назад

@@alexkerrmortgage That makes sense! Thank you for responding.

@simonclarke1383 3 года назад

Can you buy a Percentage with cash, and then rent the remaining Share without getting a mortgage?

@alexkerrmortgage 3 года назад

I am not sure but I imagine you could buy a share outright, however check with the housing association.

@masyaf897 3 года назад

Can you rent out the shared ownership property? I’ve been reading that almost always you can’t, is there any possibility you can?

@alexkerrmortgage 3 года назад

I’ve not come across a situation where you can rent out a shared ownership property.

@masyaf897 3 года назад

@@alexkerrmortgage Thanks for answering, love your content btw keep em coming

@jaycam2886 3 года назад

Pure cons out way the Pros by far!!!!!

@kwazol 4 года назад

Hi Alex W'd you make another video with explanation about how share ownership property selling process looks like?

@alexkerrmortgage 4 года назад

I’ve put this on my list :-)

@dimitrisblane6368 4 года назад

Hi there. Thank you very much for this video is very informative. Couple of questions if you have the time to answer: 1. Who is responsible for maintenance in the flat? For both appliances and the flat itself (e.g. flooring, windows, electrics etc). 2. Is it possible for the housing association to decide to sell the flat and kick you out? 3. I've had a look online and I've seen quite a few people saying that it is difficult to sell if you want to move up the ladder and can lose money. Thank you

@alexkerrmortgage 4 года назад

Hi Dimitris! 1) the housing association would cover the buildings insurance and you would be responsible for the contents. 2) unlikely they would do that unless you broke any terms. You would know the terms before going into the purchase as the housing association would supply them. 3) lots of factors come into account that effect saleability! Location, demand, the property itself and all sorts of stuff like that but being a shared ownership property would unlikely be the sole reason it doesn’t sell... I hope this helps ? Alex

@dimitrisblane6368 4 года назад

@@alexkerrmortgage thanks Alex. So from what I understand you need to look at the terms for each property individually? Is this where we will find if a cat is allowed in the property? My partner and I are very interested in shared ownership. Living in London and with our current salaries/deposit there is no chance we can buy normally. And paying rent really feels like throwing money away especially now that we are getting older... Any housing associations out there that you know have a good reputation? Cheers

@caitlinwestmoreland4920 3 года назад

What do you mean by you can only look/ buy shared ownership properties?

@alexkerrmortgage 3 года назад

Hi Caitlin, please point out which area of the video that is so I can let you know! Thanks, Alex

@alexkerrmortgage 3 года назад

Hi, I think I might know what you mean now… If you are looking for a shared ownership mortgage, you can only buy shared ownership properties. Alex

@RichGirl. 2 месяца назад

Thanks for the info. I'm a 43 year old single mom and recently started my own small business. I make 1.75 k a month now, and forecasting to hit 2k in the future. I saw the shared option and I'm wondering with my income now whether I can buy instead of renting. I am also hoping to increase my income. I am saving up for 5K deposit. Am I dreaming or is it possible with my income and age?

@alexkerrmortgage Месяц назад

All depends on property price and your net profit. Have you got 1 years trading history yet ?

@RichGirl. Месяц назад

@@alexkerrmortgage Yes, and 6 months since earning this much. Thank you!

@alexkerrmortgage Месяц назад

@@RichGirl. it’s still possible. Feel free to book a free chat so we can discuss further! link.alexkerr.co.uk/mortgage/ftb

@dans3403 4 года назад

Very helpful video. I have a help to buy ISA, can I use the money in that as a deposit for a shared ownership property?

@alexkerrmortgage 4 года назад

Dan S you certainly can! You can use it on any purchase and still obtain the bonus. Where are you in your stage, have you started a property search as yet ?

@immigrantsofficial Год назад

No way shared ownership to me..TKS a LOTTT

@jd606 3 года назад

Great video Alex, thankyou for clarifying as reading through pages and pages of info is mind boggling. You're very approachable and easy to listen to, thank you, I have subscribed!!!👍👍

@alexkerrmortgage 3 года назад

My pleasure! I appreciate that, thank you!

@floridasokosi9009 3 года назад

Thanks for the information given it sounds better for shared ownership

@alexkerrmortgage 3 года назад

Thank you for watching! I will have an updated version out soon, as a few things have changed.

@tobyshawphoto 3 месяца назад

Absolute con. Do not go shared ownership route.

@humerafaisal7083 4 года назад

Thanks for your nice video ,,, one thing I ask can we have right to sale our share anytime???

@alexkerrmortgage 4 года назад

Humera Faisal hi Humera, you can sell your property of course, but housing association rules can vary, so it’s best to check with them the terms at the start... but you can sell the property of course, you are not tied in for ever!

@ns5535 4 года назад

Hi after buy out all 100% do the house become freehold ?

@alexkerrmortgage 4 года назад

Hi N s You would need to check with the housing association if they are willing to sell the freehold once 100% is reached. They are not obliged to.

@zoebillingham7304 4 года назад

Hi I’m wanting to purchase a property on my own, I only earn 21500 a year, so shared ownership will be the avenue I have to take, can I put a larger deposit down ? Say 20k instead of 10k?

@alexkerrmortgage 4 года назад

Hi Zoe, thanks for watching! The more you put down, the better the rate potentially and more lenders you may be open to. Have you got an idea on the full purchase price of a property you would be interested in ?

@zoebillingham7304 4 года назад

alexkerrmortgage for a small 2 bed house in my area I’m looking at around 260k + 😞so want to save as much as possible to give myself the best possible opportunity!

@alexkerrmortgage 4 года назад

Zoe Billingham hi Zoe, what share of the 260k were you considering... 25% ?

@zoebillingham7304 4 года назад

Damon Wayans no one likes a negative nancy, theres avenues I can take to become a home owner and I will be owning a home within the next year, so thanks for wishing me luck, but il get there and I have no doubt in myself.

@alexkerrmortgage 4 года назад

Zoe Billingham feel free to book a free analysis call with me so we can work out borrowing potential. Shared Ownership works differently and let’s see what your options are. Book a free chat here! (Choose analysis call) - outlook.office365.com/owa/calendar/MortgageChainLtd@mortgagechain.co.uk/bookings/

@nazkhan7922 3 года назад

Hi, Alex thank you for this helpful video. I would like to know about the lease condition. What minimum remaining years we should looking to before buy the property? Kindly please reply.

@alexkerrmortgage 3 года назад

Ideally 90+

@nazkhan7922 3 года назад

@@alexkerrmortgage Thank you.

@nadirsheikh8646 Год назад

need advise , I am going through divorce and I Ann 57 , currently living in a 2 bed flat but can’t afford the mortgage anymore but if I do sell it k wil have enough equity left to pay for shared ownership . What’s your advise on this . Currently my spend is £1200 which will go down by £800 as I will not have to pay mortgage . Please advise . Thanks

@alexkerrmortgage Год назад

Hi there, it’s impossible to understand what your payments will be for shared ownership based on the information provided. Your mortgage term would be anywhere between 12 years to a maximum of 17 the basis you provide towards a pension.

@-_-11k52 Год назад

Wouldn't touch it with a barge pole

@mohammedkhan5344 4 года назад

Don't by new builds on shared ownership, it's a big con. The only way it will change is if you don't buy

@badnbourgeoisie6480 4 года назад

Where's the con? Interested to know

@mohammedkhan5344 4 года назад

@@badnbourgeoisie6480 to start off with, they are priced very expensively. You buy the house through a bank so you have to pay a mortgage on your share, but you also pay the rent on the housing association,' share. This rent can go on forever without you ever owning the house, basically they build the house so that they can cover there costs and milk you until you are dry, they are not trying to sell it. If you can't pay rent they simply kick you out and look for the next victim. Cold Truth for you

@dimitrisblane6368 4 года назад

@@mohammedkhan5344 So it's better to stay were I am paying rent of about £1500 a month instead of doing shared ownership which would get the monthly payments down to about £1000? There is no chance I could get a normal mortgage as the deposit is too high.

@alexkerrmortgage 4 года назад

thank you for the question. the "disadvantages start at 55 seconds... Alex

@charmliddle3398 5 месяцев назад

Thanks Ever so much Alex. A question if I may: when you purchase extra shares, do you go through the whole process again? I.e. are there additional cost involved?

@alexkerrmortgage 2 месяца назад

It’s a shorter process and the housing association will usually charge for this.

@jw1312 2 года назад

Hi Alex, thanks for the video. Can I use my Lifetime ISA towards a shared ownership mortgage ?

@alexkerrmortgage 2 года назад

Yes indeed you can use that for any type of property purchase.

@ChubbyChecker182 3 года назад

Shared Ownership is the biggest con going.

@cdiran 8 месяцев назад

I have a question, my husband is technically a property owner, he and his siblings received a house as an inheritance, my husband was the mortgage "owner" the house has now neen sold and we currently rent (we never loved in the house) does this disqualify my husband and I from shared ownership? I am unemployed, my husband works full time.

@alexkerrmortgage 7 месяцев назад

I’m pretty sure you should still be fine with shared ownership… Feel free to book in a free chat if you want to look into the options. Here is the link. link.coursecreator360.com/widget/appointment/mortgage-chain

@MohamedAfzalMullaTweetzal 4 года назад

Awesome video Alex. Very handy!

@juliemayala3648 2 года назад

Can I buy my 30% share without mortgage? I’ve received money from heritage, i can afford the rent it’s just the mortgage affordability isn’t passing because I have 2 higher purchase paying around £1600 a month on both .

@alexkerrmortgage 2 года назад

It depends on the housing association but just get in touch, I would be surprised if you can’t.

@Tamilclan 4 года назад

thank you first step to buy property

@loveofvideogamesandsport5673 Год назад

I was wondering I have bad credit but I was woundering if I pay 35k upfront that’s the 25 per cent . Will I have to pass credit checks still to rent can I pay 35k upfront and not have a mortgage

@alexkerrmortgage Год назад

I’m not sure about this, I would speak to a housing association about this, I’ve never come across a scenario like this.

@dvdsbl 2 года назад

Alex I'm confused. There's a flat with Landspeed Homes that you can buy with a shared equity. You buy 75% of the property and you don't pay any rent or interests on the other 25%. Seems to good to be true. Where's the catch?

@alexkerrmortgage 2 года назад

I’ve not heard of this, maybe a new type of model?

@ThatAtheistGuy20 4 года назад

Great video. Are you still locked into the housing association rules and ground rents if or when you own the property outright? Or does this change from association to association?

@alexkerrmortgage 4 года назад

Good question! It all depends on the housing association. Some will allow you to own the freehold and others will not. However once at 100% ownership there is no rent to pay...

@WoodlandWandererMatt Год назад

So if I'm right: If I go for a shared ownership of 40% my rent rate will be 60% of what I paid previously, on top of this will be my mortgage rate

@alexkerrmortgage Год назад

If you own 40%, then you will have a mortgage to pay that 40% and the remaining 60%. You will pay the housing association a rent. Compared against 100% rent, you at least own 40% and a lot of people use this as a stepping stone onto the ladder.

@robbieleatherbarrow1962 3 года назад

For a £105,859 property if bought 25% would the deposit be 5% of what I bought. So it would be £1250 something like that. How much would the rent/mortgage be.

@alexkerrmortgage 3 года назад

That would be determined by the housing association, but generally speaking, the rent is normally around 2.75% of the remaining equity share (the part you do not own)

@gemma8611 3 года назад

The thing i don't understand about shared ownership is that if i were to buy a cheap small flat the mortgage repayments could be around £320 a month. But with shared ownership the same size flat is heading for over £600 with mortgage, rent, service charges etc. So how is this helping with regards to affordability or helping people to buy homes?

@alexkerrmortgage 3 года назад

Hi Gemma, can you provide the links to the two properties you are referring to? I'm not sure of a situation like this, unless the properties are in completely different locations? Keen to help you figure this one out!

@83leeb 2 года назад

I don't know if it's just me or not. I am trying to open the "download the checklist shared ownership file" from underneath the video. The redirect doesn't seem to work and it just says RU-vid.com redirect. Can you provide the link to the shared ownership file that you talk about in this video? Thank you

@alexkerrmortgage 2 года назад

I will get this checked out… In the meantime if you download the first time buyer pack, the shared ownership document is included within this pack! Here is the link - www.mortgagechain.co.uk/first-time-buyer-tips/

@MCNutleyy 3 года назад

Thanks for the info

@AC-yg9zf 2 года назад

My Shared Ownership house is currently at 75 years lease, but my Surveyor has just valued the property without knowing the lease is below the threshold of 85 years. Would this affect the value of the property as I am Staircasing from 50% to 100% which makes the property automatically a freehold and no lease extension needed?

@alexkerrmortgage 2 года назад

It all depends on the housing association in their rules, but in theory as you are buying the freehold completely the lease becomes irrelevant

@saz6511 3 года назад

They’ve made it so that you cannot actually own 100% of the house now so seems pretty pointless plus service charges on these places are ridiculous and they’re not very well made most of them. I’ve seen a few and they’re no different to living in a pokey office

@alexkerrmortgage 3 года назад

Who have made it so you can’t purchase 100% ? Are you referring to a particular housing association ? As I do plenty of mortgages helping people purchase 100%, so imagine you are referring to a particular housing association ?

@jameshr107 3 года назад

What happens when it comes to selling your share? Do you sell it back to the house association? Who would want to buy your specific 45% of a house? Seems daft to me

@alexkerrmortgage 3 года назад

You would sell it to the general public, and it would go on sale on the normal portals, Rightmove Etc

@roxyprice900 Год назад

Does getting a shared ownership affect how much you can borrow for mortgage. Me and my partner notice as soon as we say it's shared ownerships the amount ee can borrow go's.down anyway. Doesn't this defeat the point of this . ???

@alexkerrmortgage Год назад

The amount goes down because you need income to cover the rent as well. I would focus on the full purchase price and not the mortgage amount as the purchase price will go up compared to buying outright.

@stevenbarraclough6859 3 года назад

Looking at buying a shared ownership property where I won 75% with rent of £83 a month if I could buy the 25% later on would you say this is a good idea as the house is stunning and service and ground rent are less than £10 !!

@alexkerrmortgage 3 года назад

buying a bigger share if possible I would say is a good idea and it sounds like you have found a nice property!

@drshyamvachhani6234 2 года назад

Hi, if i am buying 50% shared ownership, new bulit, who holds the rest 50% share??

@alexkerrmortgage 2 года назад

The housing association and you would pay the rent for this….

@firefly5339 11 месяцев назад

supposing i have the money to buy 25 percent without having a mortgage ? how will that work ?

@alexkerrmortgage 11 месяцев назад

I have not come across that situation before, but I would speak to the housing association if that’s the case…

@skn3098 2 года назад

Does the government 5% help to buy scheme apply to new build shared ownership properties?

@alexkerrmortgage 2 года назад

Unfortunately you can't use the help to buy equity loan for shared ownership properties, however with just a 5% deposit required of the share you are purchasing, this means the deposit is 1/4 of what you otherwise would need to put down, making it much more achievable.

@ManUnited100 3 года назад

Isit possible to get a property on shared ownership if you don’t make over 25k a year?

@alexkerrmortgage 3 года назад

Yes this is possible, it's not limited to a minimum of 25 K per year.

@Xchamonix1 3 года назад

Quick query if you own a shared ownership house. And decided to buy another buy to let property could you do this?

@alexkerrmortgage 3 года назад

Check with the housing association first but it should be ok.

@chriswindle7784 2 года назад

I don't see how this is cheaper on a monthly basis when you consider you pay yes a lower mortgage but service charges plus a rent!

@alexkerrmortgage 2 года назад

Its cheaper when compared to buying the full value of a property with a mortgage, but not a hige difference. The main benefit is you would have access to a property of this value, which might not be an option if buying outright. Thank you for watching.

@douglas2510 2 года назад

How easy is to sale your ownership of the property? Does the house association buys it or does it have to go on the open market? I heard of many people getting stuck in it not been able to sale.

@alexkerrmortgage 2 года назад

As long as you have equity you can sell it the normal route... However doublecheck with the housing association, as they may need to value it first.