How Shared ownership combined with affordable housing works

A

alaskaonline

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I just bought my share off DCC after using the 50/50 S.O. scheme. Although the scheme was initially good - in a long run I don't recommend it. Skier and bd1 got it right. The problem with the 50% rent is as stated that DCC doesn't calculate on the market value but on the initial purchase value. I ended up paying more rent than mortgage which is why I bought the other 50% off them. I'm lucky that I have a job. I don't know how people cope without a job.

As for the rented out part - in my contract at the time it stated that I can rent it out but would have to ask for permission from DCC first. I heard of people who went down this route because they simply couldn't afford their own homes anymore and they DCC gave them no hassle. I think all they're interested in is that A) they get their monthly payments and B) the tenant/ half owner doesn't make a profit.
 
alaskaonline said:
I just bought my share off DCC after using the 50/50 S.O. scheme. .
Click to expand...



Hi Alaska

That is very helpful. I presume you mean that you bought out DCC's share which you did not own?

Would you mind giving us the figures?

What year did you buy your house?
What was the market value at the time?
How was the value determined recently when you bought out the balance?
 
I don't have all the figures here but I bought in 2008 and yes I bought out DCC's 50% share. "Market value" as in with the DCC discount in 2008 was 235k. When I bought the other 50% a few months ago, I still had to buy it with 117k. DCC argues that although the value has declined, it's still 50% of original loan and if the value would have risen, the clawback would have been x amount to match/ bring me back to the same 117k. So either way regardless of market value 117k it is. So my loan is no approx. 220k. Would have to look at home for exact figures. The house value was determined by DCC by the way. They sent one out to look at the house. You can't get your own independent valuer.
I guess I was lucky that there was no clawback for me and compared to others my mortgage is still modest (if you can call it this)...
 
Hi Alaska

Was yours an affordable housing scheme? If so, it complicates the matter. You might still be getting good value.

The argument from others seem to be that they bought hakf the house at full market value. And if they want to buy the other half now, they have to pay the original market value.
 
Ya should have mentioned that, you're right. Yes bought it under the Aff.Housing Scheme with S.O.

Get your point with the other people on open market.
 
Hi Alaska

It would still be very interesting to get the full figures.

Open market value of property in 2008:
Discounted price under Affordable Housing scheme:
Price paid for your share under shared ownership at start:
Price paid in 2012 for the balance:

No hurry. Check the actual figures from the paperwork.
 
alaskaonline said:
As for the rented out part - in my contract at the time it stated that I can rent it out but would have to ask for permission from DCC first.
Click to expand...

Are you sure it says you can rent the whole property out? My contract says I can rent out a room with DCC's permission.
 
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