Shared ownership week

From 20^th – 26^th September 2018, shared ownership week will be taking place across the UK with the aim to raise awareness and help promote shared ownership schemes.

What is shared ownership?

Instead of buying a home outright, shared ownership gives first time buyers and those that do not currently own a home an affordable way to buy a home through purchasing a share in a new build or resales property – usually a minimum of 25% of the home’s value – and then paying subsidised rent for the part of the property which is not owned. Because the buyer only needs a mortgage for the share they are purchasing, the amount of money required for a deposit is a lot lower when compared to the amount that would be required when purchasing outright. Most of the time, you can then buy further shares in the property until you eventually own the home outright. This is known as ‘staircasing’.

Could shared ownership help you to purchase your own home?

Shared ownership makes taking a step onto the property ladder possible for many buyers if their salary or deposit isn’t quite big enough. Monthly payments for shared ownership in many instances are less than privately renting and purchasing a home outright. Buying a home does cost however so does renting a home. With shared ownership you have the benefit of owning a stake in your home. It is generally a cheaper option to purchase a shared ownership home when comparing against the costs of privately renting and purchasing outright.

Also, recently eligibility rules have been relaxed resulting in shared ownership becoming more popular.

The general eligibility criteria for shared ownership is:

• you must be at least 18 years old;
• your income is below £90,000 in London or £80,000 everywhere else;
• you’re a first time buying or not already a home owner; and
• you can’t afford to buy a home suitable for your housing needs.

Want to see if you could qualify? You can find the full eligibility criteria for shared ownership here.

Already part of shared ownership?

If you’ve purchased a share in a property through shared ownership and you’re looking to buy more shares in your home, this is referred to as ‘staircasing’.  There are multiple factors which contribute to the amount of shares you can buy and what they cost.  Shared ownership week’s blog answers the most frequently asked questions around staircasing including how the value of the property is determined, how many times you can staircase and what costs are involved.

 With more people than before now qualifying for shared ownership and the demand for properties within the scheme on the increase, the variety of locations and homes available are too. So, whether your new to shared ownership or already part of the scheme, there’s a growing opportunity to get involved.

Buying your first home is a huge commitment, but it needn’t be scary. If you can’t afford to buy a home outright, shared ownership can give you that extra piece of mind and a foot on the ladder on your journey to becoming a home owner. Find out more information about shared ownership week here.