Are shared ownership mortgages a good idea?

Shared ownership is a great way to get a stake in a property when you can’t afford or can’t borrow enough to buy outright on the open market. There are however common complaints from people in shared ownership schemes.

Who is LQ housing association?

L&Q (London & Quadrant Housing Trust) is a housing association operating in Greater London, the South East, East Anglia, and parts of the North West (under its subsidiary company Trafford Housing Trust). As of 2021, the company owns/manages in excess of 120,000 homes, housing c250,000 residents.

Is it harder to get a shared ownership mortgage?

Yes, you can get a Shared Ownership mortgage with bad credit. It’ll be more difficult than if you had a perfect credit score, but it’s definitely possible. A broker will have in-depth knowledge of the Shared Ownership process and will know how to make your application look great, even with a poor credit rating.

Why shared ownership is a bad idea?

Unlike full owners of leasehold properties who are unhappy with the firm running their block, shared owners cannot exercise the “right to manage” their building – it will always be run by the housing association. Another downside is that you could potentially lose your property if you fall behind on rent payments.

Is shared ownership a good idea 2021?

However, the experts have stated that shared ownership is still a good decision in 2021. Ms Mitchell added: “Shared ownership is a great way for first time buyers to get onto the property ladder and a way of taking the steps to own your first home without the need for a hefty deposit upfront.

Is it hard to sell shared ownership?

And according to Ms Nettleton, selling a shared ownership property isn’t as hard as people have been led to believe. “Normally, there is a nomination period where the home is offered to other shared ownership buyers first, but, if one can’t be found it can then be sold on the open market.”

Who is the CEO of London and Quadrant?

Fiona Fletcher-Smith (Jan 11, 2021–)
L&Q/CEO
L&Q have today announced that Fiona Fletcher-Smith will succeed David Montague as their Chief Executive with immediate effect.

How do I buy shared ownership?

With Shared Ownership you can buy a newly built home or an existing one through resale programmes from housing associations. You’ll need to take out a mortgage to pay for your share of the home’s purchase price, or fund this through your savings. Shared Ownership properties are always leasehold.

Are shared ownership properties hard to sell?

Due to the fact when selling Shared Ownership property you can only sell to people who meet the guidelines, the pool of available buyers will be smaller than selling a ‘normal property’ so this will naturally make it more difficult.

What is the minimum income for shared ownership?

The general eligibility criteria for Shared Ownership is as follows: You must be at least 18 years old. Outside of London your annual household income must be less than £80,000. In London, your annual household income must be less than £90,000.

Is shared ownership a con?

We would agree with Desai’s statement that “We are also concerned that shared ownership is not the best form of affordable housing to meet Londoners needs”. LTF has always deemed shared ownership to be a con – an ‘affordable’ tenure that is affordable only to a better off minority. London Living Rent is little better.

Can you ever fully own a shared ownership house?

Yes, you can still by a Shared Ownership home. However, the property you purchase would be available through the ‘Over 55’s Shared Ownership’ scheme which has some differences.

How does shared ownership work with L and Q?

How does shared ownership work? With an L&Q shared ownership property, you start off by buying a share in your new home on a 125-year lease (although this may vary). A lease is a legal document that proves you own part of your home and sets out conditions such as how often your rent and service charge goes up and by how much.

Is it possible to own your home with L & Q?

L&Q Shared Ownership makes it possible to own your home – even if you feel priced out of the property market. Under the Shared Ownership scheme you part-own and part-rent your home, making it possible for first-time buyers and families to get on the property ladder.

Do you pay rent on share you own with L & Q?

You will pay a mortgage on the share you own and a subsidised rent to L&Q on the share you don’t own You can increase the share you own until you own 100% of your home and no longer pay any rent to L&Q. This process is known as ‘staircasing’ Watch informative videos, hear from other home buyers and learn All About Shared Ownership here.

Who is eligible for shared ownership in London?

Shared Ownership is for anyone who doesn’t currently own a home. If you want to get on the property ladder, but can’t afford to buy outright on the open market, then Shared Ownership could be for you. It doesn’t matter what your job is, but your income must be less than £90,000 within London and £80,000 outside of London.