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Buying a property can be an exciting process but it can also be very daunting especially when trying to decide which of the multiple Government backed buying schemes to make use of, if any at all. Shared Ownership is just one of those schemes which is getting increasingly popular now that it’s becoming more widely understood so please read on to decide if this is the right choice for you.
Firstly to kick things off, shared ownership makes it easier for buyers to afford their home as the amount of money required for a deposit is much lower than when you buy a property on the open market. With shared ownership, you pay a mortgage on the share of the property that you own and pay rent for the remaining share. Over time, you can increase your share of the property, a bit at a time, until you own the property outright.
What is Shared Ownership & am I eligible?
Shared Ownership gives first time buyers and those that do not currently own a home (or if you’re in the process of selling your current home) the opportunity to purchase a share in a new build or resales property. The main points of the criteria are:
🏠 Must be over the age of 18
🏠 Outside of London your annual household income is less than £80,000. Inside London this is £90,000
🏠 You must not own another property
🏠 You should not be able to afford to buy a home on the open market
🏠 You will need to prove you have a good credit history
How does it work?
Quite simply, with Shared Ownership you pay a mortgage on the share of the property that you own and pay rent to a housing association for the remaining share.
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Will I ever own my home outright?
Over time you may be in a position to buy a bigger share of your home. For example, if you get a pay rise or come into some money. Shared ownership is really flexible so you can increase your share, a bit at a time, until you own the property outright. This process is known as ‘staircasing’ and can be done up to 100% ownership.
How much does Shared Ownership actually cost?
Shared ownership makes it easier for buyers to afford their home, as the amount of money required for a deposit is much lower than when you buy a property on the open market. In some cases, you can start with owning as little as a 25% share – and you only pay a deposit on your share which can be as low as 5%!
Our brand new development Turnball Court is a collection of twenty 1 & 2 bedroom apartments and one 3 bedroom house with parking located on Summerhouse Way in Abbots Langley which are all available using the shared ownership scheme. Click here to find out more
The government made some changes to the shared ownership scheme this year, so click here for the breakdown.
To find out more about the shared ownership properties that we currently have available, please get in touch with our New Homes team on 01923 606056. It has already helped thousands of first-time buyers and families onto the property ladder, could it help you?
Kelly Williams
New Homes Manager