Shared Equity Housing - good or bad??

Just seeing if anyone has had good or bad experiences with shared equity housing? Seems a good idea - even though you pay off the 15%/20% you don't own within 10 yrs - does it work out cheaper than taking out a mortgage on the whole property?

Just a bit confused - all this house business is new to me!

Is it direct through a housebuilder or through a Housing Association?

It would be through the house builder. Just looking at options atm .......?

OK -first - which housebuilder?

Second - can you buy out the equity at any time within the next 10 years?

Third - Do you have to pay any "rent" on unowned equity?

Shared equity is good if that's all you can affford. Housebuilders are pretty desperate to clear stock at the moment and shared equity is a good way to do so.

it is either Redrow or Persimmon

Yes i believe you can, and it is interest free for the first 5 years

not that I know of?

I have got to be honest mate I need to get my ass down there to find out more - just didn't want to jump the gun & wanted to see what people had been through before....

If your a first time buyer have you tried doing it through the council?

Redrow & Persimmon both reputable, so that's OK.

Make sure you get your solicitor to go through the small print before you commit - if not send me the details through and I will comment.

Will you be in a position in 5 years to buy out the equity. as you don't want to start paying interest on it if at all possible - try negotiating that away - they will do something for you to clinch a sale.

There's nothing bad about shared equity, it's just an initiative to help people get onto the property ladder.

While you have the right to buy the remaining share, you don't have to exercise that option.

You don't pay any interest for the first 5 years and even then, the interest rate is considerably lower that what most mortgages would cost (check this out with the builder). If you own 50% of the house and subsequently sell it, you just pay back the same percentage.

It's a way to make purchasing a house more affordable. For example, if you could only afford a house for £150,000, shared equity could enable you to buy a bigger, better house that (in the current climate) you couldnt buy.

However, not all mortgage lenders will accept shared equity mortgages so I'd advise speaking with a broker.

The good news though is that unlike shared ownership, where your LTV (loan to value) is caluculated on your share, with shared equity the LTV is calculated on the full Market value, meaning the interest rates you'll achieve will be much lower
I don't think you've to anything to be alarmed about, especially if the builder is someone like Redrow.

Hope that helps.

house builders are desparate to shift houses,offer them 15 20% less you will be suprised what they will except, if no deal just try another site, the market is in free fall,if you can stump up the money you have massive buying power.once you have had a offer excepted employ a proffesional snagger to go around the house pulling up all the faults,and there will be loads then go back to the builder and hit them for more cash off. don't ever except the advitised price those days are over.

Thanks for that guys - seems like a very good idea if I can get the right house I am looking for. Will keep you all in mind as I'm sure I will have questions soon!!!!! (Now to find a nice housing development)