Shared Ownership Scheme Mortgages
What you need to know
This is a middle ground between renting and purchasing, and it helps first-time buyers resolve their toughest challenge: saving enough money for a down payment.
Shared ownership can be a good way to get off the rental path and onto the property ladder.
Shared ownership can be more straightforward than full ownership; since you need a smaller mortgage, the mandatory deposit would be smaller as well.
Even though your mortgage plus rent payments could be the same as a full mortgage, the smaller deposit required makes it easier to acquire.
A good place to start is your local Help to Buy representative, as the government provides a shared ownership scheme through its Help to Buy mortgage scheme. Your local agent can be found at www.helptobuy.org.uk and will be able to guide you through your choices.
What is Shared Ownership?
This is a middle ground between renting and purchasing, and it helps first-time buyers resolve their toughest challenge: saving enough money for a down payment.
Shared ownership can be a good way to get off the rental path and onto the property ladder.
Shared ownership schemes are usually run by housing associations and are open to people moving home or First Time Buyers. They enable you to take out a mortgage on a portion of your home (ranging from 25% to 75%) and pay rent on the remainder.
Shared ownership mortgage allows you to rent and purchase at the same time. A housing association sells you a share of a new or existing house, and you pay rent on the rest. The mortgage will cover anything from 25% to 75% of the property’s value. You’ll need a deposit of 5-10% of the value of the share you’re buying.
You are eligible if you are a first-time buyer or a home mover who can’t afford 100% of the new one, or you currently rent a council or housing association property. Also, your household must earn less than £80,000 a year outside London or less than £90,000 in London.
A good place to start is your local Help to Buy representative, as the government provides a shared ownership scheme through its Help to Buy mortgage scheme. Your local agent can be found at www.helptobuy.org.uk and will be able to guide you through your choices.
Shared ownership can be more straightforward than full ownership; since you need a smaller mortgage, the mandatory deposit would be smaller as well.
Even though your mortgage plus rent payments could be the same as a full mortgage, the smaller deposit required makes it easier to acquire.
It's worth having a chat!
We know it gets confusing!
That is exactly why we’re here to explain your options and how to make it work for you!
....so, in a nutshell...
Get off the rental path and onto the property ladder
If you’re having trouble finding a home you can afford, shared ownership might be an option.
This is a middle ground between renting and purchasing, and it helps first-time buyers resolve their toughest challenge: saving enough money for a deposit.
For many people, shared ownership can be a good way to get off the rental path and onto the property ladder, as well as a steppingstone toward full homeownership.
There are some possible pitfalls, so balance the advantages and disadvantages before deciding if this is right for you.
Click below for more info!
Many hands make light work
Shared ownership is a government-backed programme that assists people who can’t afford a full mortgage on a home. Shared ownership allows you to purchase a portion of your home (between 25% and 75% of its value) and pay rent on the remaining portion.
You may be able to purchase a larger share of the house later on. The scheme is only available in England, and the full information can be found here.
Available for New Build and open market homes
The Shared Ownership scheme can make the purchase of a new home easier.
There are properties which are not newly built available on the open market as well as the option of buying a new build home.
You can borrow a substantial amount with the help to buy scheme
Shared Ownership is available to people who could not afford to purchase a property with a mortgage and afford to purchase the full value of that property.
Our role is to help you make an informed decision
There are many aspects to all types of Shared Ownership mortgages and we understand that you need to make the best decision.
You will undoubtedly have many more questions, so please feel comfortable enough to arrange a free, no-obligation chat!
Frequently Asked Questions
Here are a few of the questions we regularly answer for those who are wondering if this is the correct choice.
Just remember, we’re ready to chat and answer many more!
Here are a few of the questions we regularly answer for those who are wondering if this is the correct choice.
Initially, a buyer would purchase a share of their desired property – usually between 25% and 75%. A mortgage will be paid on the share you own, while a subsidised rent on the remainder will be paid to the relevant housing association, along with any service charges and ground rent.
The lease makes the shared owner the homeowner, and they are responsible for all the repairs and maintenance in their home, including major structural works and major repairs.
Selling a Shared Ownership home is known as a resale, and you can sell at any time. If you own 100% of your property, you can advertise on the open market via an Estate Agent.
Like any home, the value of a Shared Ownership property can rise and fall according to the housing market.
You are free to decorate your Shared Ownership property as you wish. However, the housing association will not contribute to decorative improvements.
As the name suggests, shared ownership doesn’t grant you all the benefits of complete ownership. As such, as well as pros, there are some cons too, relating to things like stamp duty, service charges, leasehold complications and sub-letting restrictions.
We'd be glad to run through the pros and cons with you!
Initially, a buyer would purchase a share of their desired property – usually between 25% and 75%. A mortgage will be paid on the share you own, while a subsidised rent on the remainder will be paid to the relevant housing association, along with any service charges and ground rent.
The lease makes the shared owner the homeowner, and they are responsible for all the repairs and maintenance in their home, including major structural works and major repairs.
Selling a Shared Ownership home is known as a resale, and you can sell at any time. If you own 100% of your property, you can advertise on the open market via an Estate Agent.
Like any home, the value of a Shared Ownership property can rise and fall according to the housing market.
You are free to decorate your Shared Ownership property as you wish. However, the housing association will not contribute to decorative improvements.
As the name suggests, shared ownership doesn’t grant you all the benefits of complete ownership. As such, as well as pros, there are some cons too, relating to things like stamp duty, service charges, leasehold complications and sub-letting restrictions.
We’d be glad to run through the pros and cons with you!
