Shared ownership

[sarahbell]

https://www.rightmove.co.uk/properties/132047837

 

Shared Ownership

SHARED OWNERSHIP

40%

RENT

£250 monthly

 

Leasehold 
Length of Lease: 125 years from 1st February 2015
Annual Ground Rent: £3,000
Annual Service Charge: Included in the Ground Rent

 

So does that mean you pay £3000 PLUS £250 a month plus whatever a 60% mortgage costs you?

https://www.rightmove.co.uk/properties/132047843

Same for 

£240,000

 

 

[AlfredTheLittle]

It's got natural light though

[leonardratso]

excessive natural light if you please.

Says 3K peryear, not per month doesnt it.
Ah sorry, misread, missing comma made me think that was all per month.

 

[Boon]

A leasehold house??
I think you would also pay the ground rent if you owned it.

You own 40% so the mortgage cost would be on the £96k (less whatever deposit)
So maybe £500 + £250 + £250 = £1,000/month to own 40%

You would need to stump up about £120k as a deposit to own 100% of it at the same monthly cost.

[King Penda]

23 minutes ago, AlfredTheLittle said:

It's got natural light though

And half a giraffe house

[AlfredTheLittle]

16 minutes ago, Boon said:

A leasehold house??
I think you would also pay the ground rent if you owned it.

You own 40% so the mortgage cost would be on the £96k (less whatever deposit)
So maybe £500 + £250 + £250 = £1,000/month to own 40%

You would need to stump up about £120k as a deposit to own 100% of it at the same monthly cost.

I think the £240k is just for the 40%, isn't  it? 

[sarahbell]

39 minutes ago, AlfredTheLittle said:

I think the £240k is just for the 40%, isn't  it? 

No there's two links to it.The first one is 96k I think. 
Or there should be two links. I'm out of the good drugs this week though so fuck knows what I've messed up.

[snaga]

£250pm happens to be £3000pa, could be that it's one & the same, unlikely, but not out of the realms of possibility.

Shared Ownership is full of pitfalls, but there are some good deals, we were in shared ownership (50%), paid £150pm rent and £25pm service inc ground rent, total £175pm.

similar scheme 1/4 mile away had double the monthly rents/charges.

[gibbon]

I don't think it's all bad. The landlord can't fuck you with 20% increases in rent every year like lots (such as mine) are currently doing, shared ownership is rent raises legally limited to 3%. 

[Frank Hovis]

2 hours ago, gibbon said:

I don't think it's all bad. The landlord can't fuck you with 20% increases in rent every year like lots (such as mine) are currently doing, shared ownership is rent raises legally limited to 3%. 

 

If you can a fairly new (because you have to do all the maintenance, don't buy one with a collapsing roof and a wall falling sideways) shared ownership house, in a nice area in which you are happy to live for a long time and others are happy to buy, then it is a good way of buying a house IMHO as you can then buy more of it as you save more.

£250 per month is a good rent for 60% of the property - that makes £420 per month for 100% which is superb for such a house.

I also wouldn;t be over-worried about the 125 year lease becuase, unless you leave these right to teh death, they are very cheap to keep extending.

The £3,000 ground rent is however extortionate IMHO, I know that includes services but that means cutting the verges twice a year unless you're in a block with a lift and pool.

And it's only £3,000 for starters, no further details are given but this is in Rightmove's general notes.

I wouldn't advise anyone to buy this particular house purely because of that ground rent.

 

Ground Rent Review Period

Ground rent will have a review period written into the leasehold agreement. This means the amount of ground rent can increase each time it’s reviewed. Costs which appear affordable now may not be in the future.