Shared Property Ownership
Shared Ownership gives first time buyers and those that do not currently own a home the opportunity to purchase a share in a new build or resales property. The purchaser pays a mortgage on the share they own, and pays rent to a housing association on the remaining share.
What are the disadvantages of shared ownership?
Cons of Shared Ownership
- Not all lenders offer mortgages for Shared Ownership, however the majority will.
- You have to pay 100% of the ground rent and service charge on your property, however low your share is.
- You will have to pay Stamp Duty on the whole value of the property when your owned share equals or exceeds 80%.
How does share ownership work?
How shared ownership works. You can buy a home through the shared ownership scheme if you cannot afford all of the deposit and mortgage payments for a home that meets your needs. You buy a share of the property and pay rent to a landlord on the rest.
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.
Can you buy 100 of a shared ownership property?
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 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 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’.
Do you pay rent on shared ownership?
Shared ownership is another way to buy your own home. You buy a percentage, as much as you can afford from 25% to 75% of the value of the home, and pay rent on the rest. We own part of it — but you’re living there, you decorate it, and you decide when to sell.
Is a shared ownership worth it?
says the advantages of shared ownership is that “it can enable you to get on to the property ladder more quickly than you might if you wanted to buy a home outright; it may be cheaper than renting; and you can sell a shared ownership property at any time and will benefit from any increase in value it’s seen since you …
Can I rent out my shared ownership home?
Shared Ownership is an affordable housing product designed to help first time buyers who can’t afford a property on the open market, get a foot onto the property ladder. With this in mind, subletting is not allowed under the terms of a Shared Ownership lease, unless there are exceptional circumstances.
Can my boyfriend moved into my shared ownership house?
If you are buying a property alone then only your income will be taken into consideration when buying through Shared Ownership. If you would like to have someone else move into the property once you’ve bought your home, we would recommend you letting both your housing provider and mortgage lender know.
How much rent do you pay in shared ownership?
If you buy a new-build shared ownership home, the rent limit is 3% of the value of the share the landlord owns. Most landlords charge 2.75%. For ‘resale’ homes, the starting rent will be set at the same level as the previous shared owner was paying.
Is it better to rent or shared ownership?
If you are not yet ready to commit yourself to a permanent location, renting might be best. But if you want to secure your future in an area you love, Shared Ownership is an affordable route to owning your own home!