Shared ownership schemes are a great way to own a share in a property without having to worry about raising high deposits, allowing first-time buyers and those looking to own a property the chance to get on the property ladder.
How? Shared Ownership allows the buyer to pay a mortgage on the share of the property they own, which can be as much as 75%, while paying rent to a housing association on the remaining share, meaning deposits and monthly payments are lower than buying in today’s market.
If you’re struggling to save 10% deposit for a private sale property or your household earns less than £80,000 per year, a shared ownership property is a great option to get you on the property ladder.
Helping first-time buyers and lower-income households, a shared ownership mortgage works by splitting the purchase price of a property with a housing association. This means you can buy a share of a property with a smaller deposit, as you only need to pay a percentage of the share you own.
Most shared ownership properties also only require a five percent deposit, which means if you bought a 50% share of a property that is £150,000, your deposit would be £3,750.
Before deciding whether or not a shared ownership property is right for you, it’s important to understand what’s involved, including how much you will pay on part-buy and part-rent home.
Shared ownership can vary significantly depending on the property price and the share you want to own.
Here is some useful info to consider:
Providing more flexibility in buying a home, shared ownership properties have continued to increase in popularity over the years.
If your combined household income is less than £80,000, or less than £90,000 if you live in London, you’ll be eligible to apply for a shared ownership mortgage. You will also have to meet the following criteria:
Here at VIVID Homes, we’re a leading provider of affordable homes and housing-related services in the south of England. We can help you with all of your shared ownership property needs. If you have any questions about shared ownership and how this buying option can benefit you and your family, please do not hesitate to get in touch