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.
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Shared Ownership Costs Explained
- Shared ownership involves buying a share of a leasehold property with a housing association owning the remainder.
- You pay a mortgage on your share, rent on the rest, and 100% of service charges, which can be costly.
Full Charges for Partial Owners
- Buyers of shared ownership only own part of the property but are liable for 100% of service charges and upkeep.
- Owning a small share but full liability for charges makes low-share purchases economically questionable.
Security of Tenure Benefit
- Shared ownership offers security of tenure unlike renting, providing a major benefit.
- However, this security comes at a high cost compared to renting.