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Shared Ownership 'affordability assessment' help please!

Last post Sat, Apr 21 2012, 5:34 PM by Zeb. 4 replies.
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  •  Sat, Apr 21 2012, 5:34 PM

    Re: Shared Ownership 'affordability assessment' help please!

    I agree with the sentiments previously expressed about multiple posts on the same subject.

    But I do disagree (as usual) with Maxsteam about the validity, purpose and benefits of the shared ownership programs. They are a vital way to allow people onto the housing market where they may not normally be able to afford to. However, saying that, if the houseprices are massively overvalued then you have to wonder what value they offer if it is as expensive to buy a 50% share as it is to buy a 75% share of a property with 25% deposit.

    I would do as Maxsteam has suggested and check out other similar house prices in the area, it may give you a bargaining tool. At the end of the day if a house is for sale there is almost certainly going to be some wiggle room in the asking price.

    So far as the calculator. This could be your problem. The figures are not pie in the sky or figures to be aimed at but rigid set in stone figures that must be complied with. If you are faling short then this is most likely becuae your income is not sufficient for you to demonstrate affordability (within the associations tolerances) and as such to allow you to continue would mean they feel you could place your self in financial jeopardy to take on the purchase even though the bank may well have passed you for more. Don't forget that you will also be paying rent on portion of the house that you do not own and this will increase your costs.

    It would still be worth having a chat with the company and see if there is anything you can include or exclude from your calculation that may benefit you but if all is correct and you still fail the calculator then you need to reassess and look at another property that is within your means as the shared equity association will not bend their rules to suit you

    • Post Points: 5
  •  Sat, Apr 21 2012, 5:30 PM

    Re: Shared Ownership 'affordability assessment' help please!

    Apologies for posting more than once, I was advised to post my question in as many relevant forums as I could as they said I was more likely to get a response. I have only just joined this forum and was not aware of the forum 'etiquette' and just went on my friend's advice!
    • Post Points: 5
  •  Sat, Apr 21 2012, 2:15 PM

    Re: Shared Ownership 'affordability assessment' help please!

    It would be worth also taking a step back and considering how people on this forum will view you posting your question four times.


    If you have made the same number of applications, maybe just maybe, one of your other three attempts could possibly have been successful?

    • Post Points: 20
  •  Sat, Apr 21 2012, 1:30 PM

    Re: Shared Ownership 'affordability assessment' help please!

    You have probably been lucky to get rejected. Yes, these houses tend to come with smart new kitchens and glitzy lighting but they also tend to be overpriced. You would be tied into a very one-sided agreement (whoever you are sharing equity with wont be interested in sharing the bill for a new boiler, for example), there could be complications if/when you decide to sell and you would not own the property. Before getting yourself worked up about the rejection, you should take a step back and have a look at sites like rightmove.co.uk to see what the same money could buy in the same area. It's not unusual to find similar properties for 50% less. If you buy a new property, you should certainly expect to lose, at the very least 20% of the value if you had to sell a few months after purchasing.

    It would be worth also taking a step back and considering how people on this forum will view you posting your question four times.

    • Post Points: 35
  •  Sat, Apr 21 2012, 8:16 AM

    Shared Ownership 'affordability assessment' help please!

    I applied for a shared ownership property today and went for their 'affordability' assessment.

    They put all my information into something called "shared ownership purchase affordability assessment" form and there was a little calculator at the bottom which states how much of a share you can purchase to keep you under the 45% "monthy payments to household income ratio".

    The calculator has claimed that I cannot afford the 50% share without a huge deposit (to still be within their 45% affordability ratio).

    BUT, I have a mortgage offer from a company who is willing to give me a 95% mortgage on my share with a 5% deposit ( which I can afford).

    Is there any way round or a way to over ride this 45% thing he said is set by the Government? is it set in stone or can individual housing schemes accept people who would exceed this 45% thing?

    Any advice appreciated as I so desperatly want this house and it was all good to go until this point!
    • Post Points: 20