Shared Ownership scheme
A housing association scheme to help home buyers with small deposit
Saving up a large enough deposit can be a struggle when you are already paying rent and can’t count on bank of mum and dad. Shared ownership may be the solution to get your foot on the property ladder.
If you take a mortgage for your own share, then you will have a mortgage to pay for the part you buy and rent for the share that the housing association retains. In addition, you will pay a service charge for maintenance and insurance of the property.
The shared ownership rent and service charge are proportionate to the share you didn’t buy and are below market rate. This way the overall cost (including your mortgage) may be lower than what you would otherwise pay as rent to your landlord.
Over time, you could potentially buy additional shares up to 100%. When you do sell the property, you will get the percentage of the sale price that you own at that point. Well, you will get the equity from your percentage, as the mortgage will be settled first from your share of the sale.
Steps to shared ownership
- Your gross household income is no more than £80,000 per annum outside London or £90,000 in London
- You are unable to buy a suitable home on the open market
- You do not currently own a property or will have sold your property by the time the shared ownership purchase completes
Optionally, you may qualify if you are a serving or a former (discharged within the last 2 years) British Armed Forces personnel.
There may be additional criteria for a specific property or development or by the subject housing association, so always check eligibility before applying.
What about buying an additional share or selling the property?
In these cases, you will have to first engage with the housing association to discuss your intention and establish the property value. They will also give you information about the next steps.
Give us a call and we’ll be happy to assess your options and assist during the process until completion.