It is a difficult to answer the question of which option is better – opting for a rented accommodation or a shared ownership. The best is a toss up and leave it to fate! Both sides have strong arguments in favour and against.

Shared ownership indicates owning a part of the property jointly with a co-owner – usually the housing association. Shared ownership is sometimes referred to as part-buy-and-part-rent scheme. It is of great benefit to those who cannot afford to buy a house outright. Part of the house is bought while rent is paid for the other part. As the payment towards ownership increases correspondingly the equity or the share on the house rises. This is technically known as ‘staircasing’. One goes on climbing the stairs until the entire unit is bought.

There are certain costs involved. Some of these have to be paid at one time while there are others that have to regularly remitted. The at-a-time costs include legal charges, valuation, stamp duty, mortgage arrangement fees plus a deposit. The regular remits will be for mortgage, rent, service charges, insurance, tax, fittings and furnishings, gas, water, electricity and telephone as well as for regular maintenance etc.

In shared ownership certain questions arise regarding permission for redecoration, subletting, selling of share and will. More important issues relate to revised valuation each time the share on the house is increased and the consequences of defaulting on the mortgage. These are queries for the solicitor.

The advantages of shared ownership are that it is the first step towards owning property. The properties are either brand new or in tiptop condition. The sharing proportion can range from 25% to as much as 75% at the onset. There are certain preconditions for those who qualify for shared ownership. Those employed in the right kind of jobs are given priority. Joint application is permissible. There is also tax relief.

Among the disadvantages are that sometimes there is a long waiting queue to overcome. The choice of properties and locations are limited. It may so happen that one shareholder in the absence of others is weighed down with the responsibility of the entire unit. Increase in share proportion may involve additional costs.

Young people about to build nests should think twice before opting for shared ownership. For those just debuting into independent lifestyle one cannot predict where the next job or assignment will be. As such rented accommodation gives a lot of freedom. It has fewer responsibilities and allows for more flexibility. But in these troubled times landlords may not be what they pose to be. The so-called landlord might be under the scan of foreclosure but is quietly pocketing the rent. In extreme cases he or she might be an outright trespasser who plays out the role of the landlord convincingly and decamps with security money as well as two months rent. Most rentals are yearly leases and this leaves a feeling of uncertainty.

Considering the long waiting and conditions attached to shared ownership the toss goes in favour or rented accommodation – for the moment right now!

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