UPDATE The Government announced that the changes to national planning policy will come into effect from 28 June 2021. This means Shared Ownership homes secured through Section 106 agreements, will need to be under the new model from this date. However, the new Shared Ownership model will not apply to new developments with full or outline planing permission already in place or determined before 28 December 2021.
@kieronpurver3295
3 жыл бұрын
I'm interested in buying a new build under the shared ownership scheme. Do you recommend I wait to buy until there's a development under the new model, or buy now? It seems like the new scheme doesn't benefit massively. I still won't have to worry about the lease term length (i'll be gone in 3-5 years). As you mentioned in the video, there's not likely many repairs in the first ten years for a new build anyway. And I can afford roughly 30% of the property anyway (no need for 10% minimum). Very informative video by the way.
@SelfInvested
3 жыл бұрын
@@kieronpurver3295 Thank you for watching and leaving a comment, Kieron. Your question is a difficult one. The main benefit of the new scheme, in my opinion, is having a super long lease. So, if I found a property I liked under the old scheme with a very long lease, say over 125 years, I’d be tempted. But everyone’s situation is different and you plan move after a few years, so such a long lease might not be so important. However, a long lease will be more desirable to future buyers, especially in a market where many new builds will have long leases and zero ground rent, which is likely to be the case with the leasehold reform changes that are planned (kzitem.info/news/bejne/0J98xWiBZnx7g6A). Not really an answer for you, just things to consider...
@kieronpurver3295
3 жыл бұрын
@@SelfInvested Thanks for the detailed response. The desirability for future buyers is definitely something I'll have to consider. I also haven't done much research into other schemes like the Discount Market Sale scheme - so I'm going to look into that next!
@EvieBam
3 жыл бұрын
Very informative, thank you. I’m considering my options for early 2022 so this might be a viable option.
@SelfInvested
3 жыл бұрын
It definitely could be! The 990 year lease term is a major improvement in my opinion. But you’ll still have to weigh up your options and see which is best for you. Have you seen the First Homes scheme (kzitem.info/news/bejne/pH6lvoOLjHhifIo)? If you’re not buying in London, that might be an option next year.
@markplenty2631
3 жыл бұрын
Thanks for the information, I’m getting closer by the month to finally repaying my debts! Soon I shall be saving for a deposit. Although I’m in a rather unique position because I don’t have a property to live in at present so the quicker I can repay debts and save for a down payment, the better I will be
@aminkarimi6861
3 жыл бұрын
Good luck mate, I used to live on pita bread when I owned my employer for my university fee. I asked them to deduct 40% from my payroll which allowed me to repay in 5 years. So, I can relate to your situation.
@markplenty2631
3 жыл бұрын
@@aminkarimi6861 thanks for your kind words!
@SelfInvested
3 жыл бұрын
Yes, Mark, well done! Sounds like you’ve turned things around for yourself! I wish you the best with you property purchase. Make sure you do your research, which I’m sure you’re doing by watching videos like mine, and weigh up all your options...
@SelfInvested
3 жыл бұрын
That’s really impressive, Amin. Delayed gratification is something that would benefit us all if we had the strength to exercise it!
@Brie6672
Жыл бұрын
You’ve got some great tips I hope you come back to KZitem! Content is great 🎉
@Sienio48
3 жыл бұрын
Government need to step into service charge amounts, otherwise I will not choose that scheme coz it's really pointless to pay them any amount they will ask.
@SelfInvested
3 жыл бұрын
Yes, I think it’s unfair. It’s allows the housing association to eat its cake and have it too!
@kristinesharp6286
2 жыл бұрын
I think they should do away with leases.
@SelfInvested
2 жыл бұрын
Agreed!
@Queenchar86
3 жыл бұрын
Great video. The minimum lease term length from 99 to 999 years, is that for new SO or does it include existing SO?
@SelfInvested
3 жыл бұрын
Thanks, Hope! So, it’s not being applied retrospectively to the old scheme, but there may be SO homes under old scheme that have 999 year leases.
@ManUnited100
2 жыл бұрын
What would you recommend for someone on modest income living in London looking for a 1 bedroom flat?
@SelfInvested
2 жыл бұрын
Talk to a qualified mortgage advisor about your options
@kudzaischic
3 жыл бұрын
The 1st 10years is builders structural warranty so maybe the housing association takes over after that 10years making it 20years Coz if they are claiming those 1st 10years then it is a lie to the shared owners in my opinion.
@SelfInvested
3 жыл бұрын
So, it’s supposed to cover things not covered by the new build warranty, such as sanitary ware, but I think it’s not really that valuable to shared owners. It’s limited to £500 a year and it’s unlikely to be used, I think
@Arcanehype
2 жыл бұрын
I purchased 25% share under the shared ownership scheme. In order for me to staircase to 100% how can I calculate the affordability?
@SelfInvested
2 жыл бұрын
Hey there! Have a watch of this video. I think it may answer your question. Let me know if not ;)
@Arcanehype
2 жыл бұрын
@@SelfInvested Thanks for your reply! But im not able to see a link to the video.
@SelfInvested
2 жыл бұрын
Sorry! kzitem.info/news/bejne/x56tt6aBkGqGq20
@amadkki
3 жыл бұрын
What happens to existing shared ownership who are on 99 years or 125 years lease. Will their lease Automatically be extended to 999 years?
@SelfInvested
3 жыл бұрын
No, existing leases will not be changed. Only new leases under the new model will be 990 years. The only way for existing leaseholder to get a lease of 990 years is by extending it
@amadkki
3 жыл бұрын
@@SelfInvested Thanks. It will be interesting to see how much Government will charge to extend lease to 990 years. i think they will put in place an online calculator to avoid any confusion and be transparent about it. I hope it wont be too much of a cost however it certainly is good option for existing lease owners to extend 990 years instead of staircasing to 100% in a rush to covent their existing leasehold to freehold. Mainly in houses i think at 100% equity , you get converted in to freehold. What's your take on this?
@SelfInvested
3 жыл бұрын
What is my take on Shared Ownership houses? Generally speaking, I think they are better than Shared Ownership flats. And, yes, from my understanding, generally, when you staircase to 100% ownership with a house, you own the freehold. But it’s best to check the specific terms of your terms...
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