Can someone let me know what is the catch? Been looking for a place to rent and noticed quite a few of house are for sale under shared ownership. With no real info provided it looks like a good deal for 1st time buyer. This add for example. If I get it right I own 50% of the property if I buy a place between 88k and 91k? 1 bedroom apartment for sale in Conington Road, London, SE13, SE13 Are there any other hidden charges or is it just that I never fully own the property? How would it be regarding selling later on? How do banks look at it if you ask for mortgage on that? Finally what rights do I have regarding the property? If the developer goes under what happens or can they choose to bail out of shared ownership and what then? I seem to remember quite a few people were in to housing on site of old including Gav even if he does not want to admit it
If you have a look at the which magazine report it gives answers to most of your questions, hope this helps.
I would set out a list of questions and just phone the agent L - you have to be approved by the 'housing committee' to start with (first steps?) and it may vary they will only let you have shares to value of around 4 and a half x salary unless other hardships. Minimum shares 25% maybe and they retain the rest. The important bit is how much the cost of remaining shares may fluctuate and how much are they legally allowed to charge - ask if outright purchase is possible at anytime or if you can purchase 51% even. Ask them what rate they would apply if you wanted out after a year. Me posting this will hopefully encourage others who really know what they're talking about to help you in more detail.
