Shared mortgage ownership
What is shared ownership? Shared ownership, also known as ‘part buy part rent’, is a type of mortgage that gives first-time buyers the chance to buy a share in a new build property. You can take out a mortgage for the share you own (usually between 25% and 75%), while paying rent on the rest to a housing association.
Is it a good idea to do shared ownership?
Pros of Shared Ownership
Shared Ownership allows you to get on the property ladder as an owner-occupier, offering long-term stability without overstretching yourself. Deposits are generally lower than buying on the open market. Shared Ownership makes mortgages more accessible, even if you’re on a lower wage.
How much income do you need for shared ownership?
There is no set minimum income for Shared Ownership – either for single buyers or as a joint household income. Each home will have its own valuation and the housing association will determine the minimum income required for that property to be affordable to people earning under the maximum allowance threshold.
What are the negatives of shared ownership?
What are the downsides to shared ownership?
- Maintenance charges. …
- No renting allowed. …
- Buying up increased shares in your property can be expensive. …
- Restrictions on what you can do. …
- The risk of negative equity. …
- Issues around selling your share when moving home. …
- You don’t have greater protection under shared ownership.
Is shared ownership worth it 2021?
However, the experts have stated that shared ownership is still a good decision in 2021. Ms Mitchell added: “Shared ownership is a great way for first time buyers to get onto the property ladder and a way of taking the steps to own your first home without the need for a hefty deposit upfront.
Is shared ownership cheaper than renting?
You’ll pay less rent compared to regular renting. The bigger your share, the lower your rent. You’ll have more freedom to make modifications, redecorate etc, compared to if you were just renting from a landlord. You can increase your share at any time, so you can end up fully owning your own home.
Do you pay rent on shared ownership?
For a shared ownership home, you need to pay rent to your landlord for the share you do not own. You may lose your home and the money you put into it if you do not pay your rent or you break the terms of your lease.
Is anyone eligible for shared ownership?
The general eligibility criteria for Shared Ownership is as follows: You must be at least 18 years old. Outside of London your annual household income must be less than £80,000. In London, your annual household income must be less than £90,000.
Can you ever own 100 of Shared Ownership?
How can I buy 100% of Shared Ownership property? You can gain full ownership of your Shared Ownership property through a process called ‘staircasing’. Once you’ve bought your initial stake in your home you can staircase to 100% Ownership in batches of 10% or larger.
Is it hard to sell a Shared Ownership property?
If you don’t own 100% of the property and you wish to sell, then you will ultimately find selling a much more challenging experience, with selling Shared Ownership property described as ‘doable’ but more complicated than selling a ‘normal house’.
Can you decorate a Shared Ownership house?
Can I decorate my Shared Ownership home? You are free to decorate your Shared Ownership property as you wish, however, the housing association will not contribute to decorative improvements.
Who is responsible for boiler in shared ownership?
Conclusion: All shared owners are responsible for maintaining their gas boilers, including the resident, under the terms of their lease.
Can I have a lodger in a shared ownership house?
As a shared owner you are able to take in a lodger but you must make sure that: You inform us that you are taking in a lodger. You don’t give your lodger a tenancy agreement. You do not move out.