This is a huge problem with shared ownership: it massively inflates prices. No three bed flat in Lewisham is worth £595k, even now with crazy high prices. The developers secure the highest valuation they can, then shared ownership makes the price seem reasonable because you only pay half of it.
There are some 1 bed flats being sold using it near me for £450k total, which I can look down on from my £340k two bed with separate lounge. Those people are not going to have a good time when they want to move.
Shared ownership always was and always will be a giant scam. It’s the worst of both worlds (renting & buying) for the buyer but presented as some golden ticket to the property ladder.
This is why I refuse to even look at shared ownership as an option. Total scam.
Shared ownership is effectively rental with a slice of the cake. You have very few rights over the property you supposedly own. It’s a life raft for the desperate to get on the property ladder. Like Help to Buy, another scheme designed to fill the pockets of builders and property developers.
Well if the local area on rightmove is anything to go by I am not surprised. Why the fuck would I pay half the price of 4 bedroom house when I only get 1 bedroom from it? It is clearly a shit deal.
If I was actually getting 25% of the price of a comparable house in return for 25% of the property, I might then consider it.
It’s absolutely crazy that if you sell a house below the valuation that you have to pay the housing association back for their share. I.e if its £80,000 under valuation the housing association don’t take the hit on 25% if they own that much. So everyday lenders have risk but the housing association takes rent AND do not have to incur risk on their investment at the expense of regular homeowners? More Tory government masterclass.
My mate became a prisoner in his own flat.
He bought initially 25% in 2015, during COVID he tried to buy additional 50% as the “rent” part got hiked up. Bank told him no as the house has apparently the dangerous cladding on one wall. Then his partner became pregnant and they lost 1/2 of income due to difficult pregnancy. His current situation:
– Can’t sell it because no bank will mortgage it due to cladding.
– Can’t buy additional share as his own bank won’t give additional 25-50% mortgage
– Can’t remortgage existing 25%, but paying the higher “after-fix” rate is ok…
– The leaseowner can’t give ETA on when the cladding will be fixed, but due to the law change will most likely pass the 100% expense onto them (despite owning only 25% of the flat)
– Can’t rent and move to cheaper area it due to T&Cs not allowing renting
– Can’t sublet one room due to T&Cs
– Can’t move back to his home country, because he would lose all.
The irony is that the cladding is only on one wall, that he has full wall window on. His only chance is to find a cash buyer, but no buyer will but a flat that they will most probably have to cough up additional £££ for the cladding and will squeeze them on price most likely.
Shared ownership is a scam to milk people hoping to get on the property ladder.
S/O is fine e if you intend to staircase. And looks much better at 2.75% rent on unsold equity in higher or actually more normal interest rates.
New build premiums are an issue just the same as private sale. A 25 year old resale doesn’t have the overvalued problem and has a lower rent.
Honestly, they should just outlaw shared ownership models all together. They artificially inflate house prices across the board and create a depressing vision of the future where people are getting 95% mortgages for a 5% share in a 1 bed flat.
These ‘deals’ are a total scam. Frankly it’s better to rent than to buy into shared ownership.
I’d rather live in a freehold in a dodgy part of Luton than in one of these Shared Ownership flats in London. At least I can sell the house.
This is why I ended up in a very modest flat for my first home as opposed to the 3 bed houses I could only afford on shared ownership, I’d have been stuck in it forever.
One of many reasons why I’ll never understand people willingly buying flats, especially in areas like this where cheaper, freehold ex-council houses are often available.
You will never own a flat. You will never be in full control of your living circumstances in a flat. You can’t hurry the building owners – you’re stuck whenever anything goes wrong if they can’t be bothered. These people (and anyone buying a flat) chose to be prisoners in their own homes from day one.
I don’t think shared ownership is anything good but….
My friends are currently in a situation where thay have to move from rented house as its being listed for sale.
They have been living in it for 18 years, recently they were paying about £1400 rent which isn’t bad for 3 bedroom end of terrace with large driveway and garden.
Now to find something like this is absolutelly impossible untill you away from your 18 years of life and basically out of London.
Their jobs are basically local and their kid is 9, so moving away is a no no for achool reason among others.
As they searched for a two bedroom there is nothing in a range of 15 miles even, that would be £ 2000 a month rent only.
They only option become shared ownership that was basically pushed in to their throat.
They have no choice and are aware that it might not be financialy wise eventually, butbthere is nothing else they can find and it has some positives ( very local, public transport, new build, maintenance, garage, shops etc)
So as they going to pay around £1800 rent and mortgage on 3 bedroom flat for 25% share in new tower block, there is basically no other option as banks laughed in their face on £65 grand houshold income for normal mortgage.
Definitely not a Ponzi. Definitely not a Ponzi. Definitely not a Ponzi…
The catch for me with shared ownership was the fucking algebra degree you needed to get it. I would stare at the paperwork like “OK so I pay this mortgage but that is rent and then we can ‘staircase’ so we have some things going up and down here and some things are ‘mine’ but also yours and some things are never ‘mine’ and I have all of the pleasure of ‘community fees’ whilst owning, what, 0.7% of a single brick?…”
Here’s the thing. If it takes that many bloody words to explain it, it’s a con. It’s designed to be fucking impenetrable. I skipped that bit and went straight to the articles that explained how ‘staircasing’ was also a con. I also tried to imagine the joy of explaining all that gubbins to a prospective new owner.
I live in a renovation building site, so good golly do I appreciate how attractive it must be to have a clean, nice place right off the bat. But it’s not worth 200k of inflated fees to some bloodsucking corporation who is setting you up to fail.
Shared ownership is just another method to artificially support the housing Ponzi scheme. Nobody should be looking at buying a shared ownership home…no matter the guff in the brochures
Shared Ownership is a scam made to look like it benefits the buyer. Sure, you get on the property ladder but you’ll be paying mortgage + rent + service charges.
In fact it will only ever benefit the developers as it enables them to sell their grossly overpriced properties.
Am I missing something – it says the owner hasn’t even tried to sell it since 2020. Rest of the article says there are some extra hoops to jump through or perhaps a cash buyer is required, but sounds like it isn’t an impossibility. In general if your home isn’t up for sale then yes, you will struggle to sell it.
Shared ownership can be ok for resales and if you are planning to staircase to 100%. That way you are less likely to lose a lot of value from the inflated new build price.
I don’t really understand the concept behind this.
“Here, buy half this house, pay a mortgage and service charges and another monthly fee on top of that to me!”
I honestly thought that the monthly rent we would pay to the other owner would go towards the % we didn’t buy, but no! It’s expected during the tenure to buy outright the rest of the %…
Who the fuck does that? How can I afford a mortgage and still save to pay the rest of the house…my income will not magically grow like that!
I know someone that is in one of these arrangements. Absolutey convinced he’ll be able to sell down the line and make a profit. It’s going to be a tough lesson.
Shared ownership is a con to get people to buy overpriced houses they can’t afford.
Stay well clear.
**shared ownership is a massive scam and should be avoided at all cost**
A lot of people saying S/O is a con and to avoid. But what are the options? If you work in an expensive city you can’t just move to a cheaper one as that will cost more in travel. You could rent but that can be way more expensive and gives you no security of tenure. I know people who have bought a 25% share with a smallish deposit and whilst they know is a compromise the alternative was much worse. Fact is that share has increased in value.
It is so easy to be dismissive and to say “avoid” but these aren’t works of art or stock funds, they are homes and people need to live somewhere. Avoid is not an answer.
The issue with cladding is a separate matter and is a complete disgrace. However, this is not just limited to shared ownership.
so glad, I didnt do a shared ownership about 6 years. It almost happened.
This isnt on Shared Ownership – if that block of flat is where I think it (over the Gym by Lewisham Station), they’re not worth 595k…. Im pretty sure they’re 750 – 850 sqm for 3 bed which is super cramp.
​
If you look at similar properties in the local area:-
28 comments
[No paywall here](https://archive.is/2023.04.21-224244/https://inews.co.uk/inews-lifestyle/money/property-and-mortgages/i-cant-sell-my-home-people-in-shared-ownership-flats-are-failing-to-sell-even-at-a-loss-2289320)
This is a huge problem with shared ownership: it massively inflates prices. No three bed flat in Lewisham is worth £595k, even now with crazy high prices. The developers secure the highest valuation they can, then shared ownership makes the price seem reasonable because you only pay half of it.
There are some 1 bed flats being sold using it near me for £450k total, which I can look down on from my £340k two bed with separate lounge. Those people are not going to have a good time when they want to move.
Shared ownership always was and always will be a giant scam. It’s the worst of both worlds (renting & buying) for the buyer but presented as some golden ticket to the property ladder.
This is why I refuse to even look at shared ownership as an option. Total scam.
Shared ownership is effectively rental with a slice of the cake. You have very few rights over the property you supposedly own. It’s a life raft for the desperate to get on the property ladder. Like Help to Buy, another scheme designed to fill the pockets of builders and property developers.
Well if the local area on rightmove is anything to go by I am not surprised. Why the fuck would I pay half the price of 4 bedroom house when I only get 1 bedroom from it? It is clearly a shit deal.
If I was actually getting 25% of the price of a comparable house in return for 25% of the property, I might then consider it.
It’s absolutely crazy that if you sell a house below the valuation that you have to pay the housing association back for their share. I.e if its £80,000 under valuation the housing association don’t take the hit on 25% if they own that much. So everyday lenders have risk but the housing association takes rent AND do not have to incur risk on their investment at the expense of regular homeowners? More Tory government masterclass.
My mate became a prisoner in his own flat.
He bought initially 25% in 2015, during COVID he tried to buy additional 50% as the “rent” part got hiked up. Bank told him no as the house has apparently the dangerous cladding on one wall. Then his partner became pregnant and they lost 1/2 of income due to difficult pregnancy. His current situation:
– Can’t sell it because no bank will mortgage it due to cladding.
– Can’t buy additional share as his own bank won’t give additional 25-50% mortgage
– Can’t remortgage existing 25%, but paying the higher “after-fix” rate is ok…
– The leaseowner can’t give ETA on when the cladding will be fixed, but due to the law change will most likely pass the 100% expense onto them (despite owning only 25% of the flat)
– Can’t rent and move to cheaper area it due to T&Cs not allowing renting
– Can’t sublet one room due to T&Cs
– Can’t move back to his home country, because he would lose all.
The irony is that the cladding is only on one wall, that he has full wall window on. His only chance is to find a cash buyer, but no buyer will but a flat that they will most probably have to cough up additional £££ for the cladding and will squeeze them on price most likely.
Shared ownership is a scam to milk people hoping to get on the property ladder.
S/O is fine e if you intend to staircase. And looks much better at 2.75% rent on unsold equity in higher or actually more normal interest rates.
New build premiums are an issue just the same as private sale. A 25 year old resale doesn’t have the overvalued problem and has a lower rent.
Honestly, they should just outlaw shared ownership models all together. They artificially inflate house prices across the board and create a depressing vision of the future where people are getting 95% mortgages for a 5% share in a 1 bed flat.
These ‘deals’ are a total scam. Frankly it’s better to rent than to buy into shared ownership.
I’d rather live in a freehold in a dodgy part of Luton than in one of these Shared Ownership flats in London. At least I can sell the house.
This is why I ended up in a very modest flat for my first home as opposed to the 3 bed houses I could only afford on shared ownership, I’d have been stuck in it forever.
One of many reasons why I’ll never understand people willingly buying flats, especially in areas like this where cheaper, freehold ex-council houses are often available.
You will never own a flat. You will never be in full control of your living circumstances in a flat. You can’t hurry the building owners – you’re stuck whenever anything goes wrong if they can’t be bothered. These people (and anyone buying a flat) chose to be prisoners in their own homes from day one.
I don’t think shared ownership is anything good but….
My friends are currently in a situation where thay have to move from rented house as its being listed for sale.
They have been living in it for 18 years, recently they were paying about £1400 rent which isn’t bad for 3 bedroom end of terrace with large driveway and garden.
Now to find something like this is absolutelly impossible untill you away from your 18 years of life and basically out of London.
Their jobs are basically local and their kid is 9, so moving away is a no no for achool reason among others.
As they searched for a two bedroom there is nothing in a range of 15 miles even, that would be £ 2000 a month rent only.
They only option become shared ownership that was basically pushed in to their throat.
They have no choice and are aware that it might not be financialy wise eventually, butbthere is nothing else they can find and it has some positives ( very local, public transport, new build, maintenance, garage, shops etc)
So as they going to pay around £1800 rent and mortgage on 3 bedroom flat for 25% share in new tower block, there is basically no other option as banks laughed in their face on £65 grand houshold income for normal mortgage.
Definitely not a Ponzi. Definitely not a Ponzi. Definitely not a Ponzi…
The catch for me with shared ownership was the fucking algebra degree you needed to get it. I would stare at the paperwork like “OK so I pay this mortgage but that is rent and then we can ‘staircase’ so we have some things going up and down here and some things are ‘mine’ but also yours and some things are never ‘mine’ and I have all of the pleasure of ‘community fees’ whilst owning, what, 0.7% of a single brick?…”
Here’s the thing. If it takes that many bloody words to explain it, it’s a con. It’s designed to be fucking impenetrable. I skipped that bit and went straight to the articles that explained how ‘staircasing’ was also a con. I also tried to imagine the joy of explaining all that gubbins to a prospective new owner.
I live in a renovation building site, so good golly do I appreciate how attractive it must be to have a clean, nice place right off the bat. But it’s not worth 200k of inflated fees to some bloodsucking corporation who is setting you up to fail.
Shared ownership is just another method to artificially support the housing Ponzi scheme. Nobody should be looking at buying a shared ownership home…no matter the guff in the brochures
Shared Ownership is a scam made to look like it benefits the buyer. Sure, you get on the property ladder but you’ll be paying mortgage + rent + service charges.
In fact it will only ever benefit the developers as it enables them to sell their grossly overpriced properties.
Am I missing something – it says the owner hasn’t even tried to sell it since 2020. Rest of the article says there are some extra hoops to jump through or perhaps a cash buyer is required, but sounds like it isn’t an impossibility. In general if your home isn’t up for sale then yes, you will struggle to sell it.
Shared ownership can be ok for resales and if you are planning to staircase to 100%. That way you are less likely to lose a lot of value from the inflated new build price.
I don’t really understand the concept behind this.
“Here, buy half this house, pay a mortgage and service charges and another monthly fee on top of that to me!”
I honestly thought that the monthly rent we would pay to the other owner would go towards the % we didn’t buy, but no! It’s expected during the tenure to buy outright the rest of the %…
Who the fuck does that? How can I afford a mortgage and still save to pay the rest of the house…my income will not magically grow like that!
I know someone that is in one of these arrangements. Absolutey convinced he’ll be able to sell down the line and make a profit. It’s going to be a tough lesson.
Shared ownership is a con to get people to buy overpriced houses they can’t afford.
Stay well clear.
**shared ownership is a massive scam and should be avoided at all cost**
A lot of people saying S/O is a con and to avoid. But what are the options? If you work in an expensive city you can’t just move to a cheaper one as that will cost more in travel. You could rent but that can be way more expensive and gives you no security of tenure. I know people who have bought a 25% share with a smallish deposit and whilst they know is a compromise the alternative was much worse. Fact is that share has increased in value.
It is so easy to be dismissive and to say “avoid” but these aren’t works of art or stock funds, they are homes and people need to live somewhere. Avoid is not an answer.
The issue with cladding is a separate matter and is a complete disgrace. However, this is not just limited to shared ownership.
so glad, I didnt do a shared ownership about 6 years. It almost happened.
This isnt on Shared Ownership – if that block of flat is where I think it (over the Gym by Lewisham Station), they’re not worth 595k…. Im pretty sure they’re 750 – 850 sqm for 3 bed which is super cramp.
​
If you look at similar properties in the local area:-
Freehold for 550k
[https://www.zoopla.co.uk/for-sale/details/61597020/?search_identifier=7b0c659c2cac18be58b59d72b4e3584f](https://www.zoopla.co.uk/for-sale/details/61597020/?search_identifier=7b0c659c2cac18be58b59d72b4e3584f)
​
Flat 500k+
[https://www.zoopla.co.uk/for-sale/details/63373106/?search_identifier=7b0c659c2cac18be58b59d72b4e3584f](https://www.zoopla.co.uk/for-sale/details/63373106/?search_identifier=7b0c659c2cac18be58b59d72b4e3584f)
​
350K Fixer Upper
[https://www.zoopla.co.uk/for-sale/details/64429210/?search_identifier=0cee2821bebe8be6349b594bbd179a81](https://www.zoopla.co.uk/for-sale/details/64429210/?search_identifier=0cee2821bebe8be6349b594bbd179a81)