I don't understand what is meant by shared ownership, e.g in a propety like Elderflower Mews, please explain?
Sorry, listed in Nowich property
Asked on Sep 10 2010,
Home Finance in Norwich |
You own a % of the property either by ways of mortgage or cash in a lease format, the remainder is owned by a housing association to whom you pay a subsidised rent. You are entilted to purchase remaining share if you want up to 100%. When it comes to selling the property your share is callucalted at your % of the entire property. It is a cheap way of getting on the housing ladder.
Answered on Sep 11 2010,
Mark is right, basically it is a subsidised purchase scheme, in which your part buy and part rent.
Answered on Sep 14 2010,
The whole shared equity arrangement is interesting. To give an example; often a 50% share of a property sells for more than a mathematical 50% of the property value i.e. take a property worth £100,000, the 50% share may sell for £55,000. This seems to be down to the fact that it is a cheaper way to buy a house which individuals couldn't otherwise afford and this creates a premium.
If you want to buy additional shares, you will need to have the property valued by a surveyor. Be warned however, when selling, the property has to be valued by a surveyor who may suggest it is worth say £100,000. The Housing Association will have first chance to offer the property to individuals on the books and they will pay a mathematical share of the property value. If exposed to the market (usually after 8 weeks) you may get more than a mathematical share for the reasons given above.
Hope this helps.
Answered on May 30 2012,
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