Shared Ownership. Your Key to Homeownership?

If you have been dreaming of owning your own place but feel stuck renting due to a small or even no deposit? Shared ownership could be the the solution to help buy your first home combining a lower purchase price with renting the remaining share of the house to help you get on the property ladder.‍

Why Shared Ownership?

Shared ownership allows you to buy a portion (usually between 25% and 75%) of a property depending on your personal circumstances and affordability subject to housing association affordability checks, with a housing association owning the remaining share. This means:

Lower deposit: You only need a deposit on the share you're purchasing, making it much more manageable than the traditional 5-10% deposit required for a full purchase. (There are even some zero deposit options for borrowers, subject to conditions of the housing association schemes)

Accessible mortgages: With a smaller mortgage amount, qualifying for a mortgage on the owned share of the property could become easier, even with limited savings. Remember if you did want to try your own affordability checks that the monthly costs of rental on the remaining share and cost such as service charges and ground rent will be considered as outgoings against your affordability.

Potentially lower monthly costs: In some cases, your combined mortgage repayments and rent on the unowned share can be comparable or even lower than renting privately.

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Is Shared Ownership Right for You?

Shared ownership won't be right for everyone & here are some things to consider:

Restrictions: You may have limitations on alterations and selling the property. There will be a percentage fee of the rented part of the property to sell the property on.

Leasehold: Shared ownership properties are typically leasehold, meaning you pay ground rent & a service charge to the housing association.

Long-term commitment: Shared ownership is a long-term commitment. Carefully consider your future plans before entering into a scheme as what could be right for you in the short term or immediate future may prove costly in the medium to longer term.

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If you want to know more about your borrowing capabilities or if you think shared ownership could be right for you and want to know more contact us today for a free consultation and let's discuss your options for achieving your homeownership goals!