Shard Home Ownership.

[Woodstock]

Is there anyone out there who could explain the advantages/disadvantages of shared home ownership for new housing. My son is struggling to get a mortgage (he already has one - but needs to buy a slightly larger property) and shared ownership seems the only prospect at the moment. (Please answer in one syllable words - I'm a simple girl!!!) TIA

[murraymints]

shared with ?

[Islay]

You own 50% they own 50% and you get an opportunity to buy more shares but that is at the market value so say you 10% next year at £10000 and the year after you want to buy a further 10% it could cost you £20000!
The biggest problem is when you come to sell, you have to give them first choice to buy at a price they agree, and they have so long to find a buyer.

[Ryzen]

...and you pay rent on the part you dont own.

[murraymints]

if it is not with another individual but an agency as above then I'd be aware of these pitfalls..