Merryn Talks Money
Are Shared Ownership Properties Actually Worth it?
Apr 15, 2025
Ray Boulger, a senior mortgage technical manager at John Charcol and a mortgage industry expert, joins the discussion on shared ownership properties in the UK. They dissect the benefits and challenges of these investments, emphasizing the need for critical evaluation against traditional renting. Boulger shares insights into financing options and the complexities of property ownership structures, including potential risks such as immediate depreciation of new builds. The conversation also highlights the importance of seeking independent legal advice for prospective buyers.
12:35
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Quick takeaways
- Shared ownership can seem affordable initially, but high maintenance costs for the entire property often burden buyers financially beyond their ownership percentage.
- Exploring alternative financing options, such as 100% mortgages or outright purchases, can provide prospective homeowners with better control and flexibility than shared ownership.
Deep dives
Understanding Shared Ownership
Shared ownership involves purchasing a percentage of a property, typically between 10% and 75%, with the remaining share owned by a housing association. Buyers are responsible for a mortgage on their share, in addition to paying rent on the portion they do not own. Despite being more affordable initially, shared ownership often incurs high costs related to service charges and maintenance for the entire property, even if the owner only has a small share. This arrangement creates a scenario where buyers may feel more like renters than actual homeowners, raising questions about the overall value of such investments.
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