What I have found with Shared Ownership is the monthly out goings are high - so if you are unable to save money because the monthly repayments are so high - how can you staircase up? I mean another deposit is needed right?
@SelfInvested
3 жыл бұрын
Hi Emma, thank you for your comment! So, my views on Shared Ownership have changed slightly since I made this video. Please watch this video for my current thoughts on the scheme: kzitem.info/news/bejne/s2iiy6dskp6WYHo. Yes, the monthly costs of Shared Ownership are the same as 100% ownership for things like service charge (even if you own just 25% of your home, you're still responsible for 100% of the service charge cost). With the mortgage, however, the interest rate tends to be higher than 100% ownership (so is more expensive for each pound borrowed), but the rent tends to be lower than in the private market because it's subsidised. In the example I give in this video, you get the bigger deposit from the growth in value of the equity you own. However, one issue I fail to address in the video, which is quite important, is that as you take out a bigger mortgage, you need a higher salary. For example, a mortgage of £95k would require a salary of around £21k. But a mortgage of £190k, would require a salary of around £42k (double your initial salary). And to get a mortgage of £380k to buy 100%, you'd need £84k! This salary kind of salary increase is unrealistic for most people and means that it's unrealistic that most people will be able to staircase to 100% ownership.
@SelfInvested
4 жыл бұрын
Thanks for watching! What did you think of the video? Is Shared Ownership something you’re considering? If so, how did the video influence your thinking?
@chubbyBunny94
3 жыл бұрын
Only just subbed this morning and have been binging your content. Really helpful stuff in all your videos. Also feedback is to have some music in the background - really really quiet, just to raise the enegry/vibe. Feel free to ignore me if it'll get distracting. Good job also on the graphics aspects
@SelfInvested
3 жыл бұрын
@@chubbyBunny94 Thank you for subbing! Glad to hear you’re finding the content helpful. Yeah, I hear you about the music. I was planning to start using low volume background music but I just forgot about it. Also, I know I need to work on my on camera presence. Your comments/suggestions are fair! Here’s an update video to the one you just watched: kzitem.info/news/bejne/x56tt6aBkGqGq20
@anupamapu
6 ай бұрын
Its a very good video. I have a question- after 2 years when the value of the property increases, do both the shareholders get the capital gains or the owner takes /claims all during staircasing?
@mf732
3 жыл бұрын
thank you for your channel and videos aswell as education
@SelfInvested
3 жыл бұрын
You’re welcome. Thank you for watching!
@talibahstevenson5820
3 жыл бұрын
Great info for beginners, thank you
@SelfInvested
3 жыл бұрын
My pleasure! Thank you!
@rb7007
3 жыл бұрын
Excellent video, as always. Thanks for the info! 👍
@SelfInvested
3 жыл бұрын
My pleasure! 😉 It’s great to see the videos are useful! Have you checked out the one I did on the revamped scheme from 2021?
@rb7007
3 жыл бұрын
@@SelfInvested yep, I did! I’ve been binge watching quite a few of your videos actually. Lol
@SelfInvested
3 жыл бұрын
Haha! I need to make more content!!
@LondonWalkability
3 жыл бұрын
Great video thanks
@SelfInvested
3 жыл бұрын
You’re welcome, brother. Thank you for leaving a comment 🙏🏿 Make sure you check this video out as well, I go into more detail: kzitem.info/news/bejne/x56tt6aBkGqGq20
@NidhinXavierP
2 жыл бұрын
Thank you 🙏🏻
@SelfInvested
2 жыл бұрын
No problem ;) Here’s the follow up video: kzitem.info/news/bejne/x56tt6aBkGqGq20
@radjob2540
Жыл бұрын
Hi … could you tell me if I staircase up to 100% what will happened leasehold? If it’s a leased hold after buy full property can I make it as free hold ? If it’s cost more to make free hold?
@verawelch
3 жыл бұрын
So whats the ideal time to purchase rest of the equity after buying a shared ownership house (for example 40% no mortgage) to avoid rapid increase in house prices? first 5/10 years?
@SelfInvested
3 жыл бұрын
Generally the sooner you staircase to 100% ownership the cheaper it is because house price tend to increase over time. However, this is easier said than done, check out this video: kzitem.info/news/bejne/x56tt6aBkGqGq20
@bourne_legacy090
3 жыл бұрын
Hi, In the calculation at 11:14 does it use the £10,092 to increase the property share, or does it require an additional £10,000 saved separately to increase the share?
@SelfInvested
3 жыл бұрын
Hi Triston, if I understand you correctly, the £10,092 of equity acquired after 2 years is used as a deposit for the new mortgage to increase the ownership share by 25% to 50%. It doesn't require an additional £10,000. Let me know if this answers your question.
@bourne_legacy090
3 жыл бұрын
@@SelfInvested thanks that'll definitely help
@SelfInvested
3 жыл бұрын
@@bourne_legacy090 You're welcome!
@adelalbuaijan9071
Жыл бұрын
question, so from the monthly rent on the share that he/she does not own and after 2 years, it became 10,02 Pounds , right?
@illnamethisaccountlater4762
2 жыл бұрын
Hi, I hope you are well Can you staircase without remortgaging each time? For example, If acquiring a 15% share is 10k, Can I buy the share without remortgaging? Additional, would it be beneficial to staircase this way?
@SelfInvested
2 жыл бұрын
Hey there! As far as I understand, you don’t need to remortgage to staircase but you may need to inform your lender of the change in ownership. It’s best to speak to a mortgage broker about your specific circumstances to understand whether it would be more beneficial
@GemWoody
3 жыл бұрын
Do you need another lump sum/deposit to staircase?
@SelfInvested
3 жыл бұрын
If you’re taking out a bigger mortgage to staircase, you may need a bigger deposit to the secure it. In the example I gave, the bigger deposit was covered by the larger equity share gained from mortgage repayments. Hope this makes sense?
@GemWoody
3 жыл бұрын
@@SelfInvested thanks, that makes sense. It's hard to know how to prepare.. (we're hoping to staircase in Jan next year when we remortgage). We've been overpaying a little every month so I hope that helps but haven't been saving for a deposit
@SelfInvested
3 жыл бұрын
@@GemWoody The other thing you need to be mindful of is your salary. Lenders generally only lend a maximum of 4.5 x your combined salaries. I discuss it more in this video: kzitem.info/news/bejne/x56tt6aBkGqGq20 Anyway, good luck with it all!
@Sienio48
3 жыл бұрын
Can I get into shared ownership and after few years remortgage but with added partner salary? Which was not included at the start of shared ownership due to poor credit score
@SelfInvested
3 жыл бұрын
Thank you for watching, Sienio. That should be possible, but best to get the advice of a mortgage broker to make sure. You should be able to speak to one for free. Let me know if you need me to point you in the direction of one :)
@Sienio48
3 жыл бұрын
@@SelfInvested already got answer for that. Thanks.
@olayiinkx
3 жыл бұрын
Sounds silly but what is meant by getting on the property ladder.
@SelfInvested
3 жыл бұрын
No that’s not a silly question! If you don’t know, you don’t know. Getting on the property ladder just means buying a property. So you get on the property ladder by buying a property. It’s seen as a ladder because you usually start at the bottom end of the market. As you gain more equity in your property and start earning more, you start to step up the ladder to your dream or forever home!
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