Shared ownership provides buyers with a more affordable way to purchase a property. It’s also referred to as part buy, part rent.
Shared ownership involves buying a percentage of a property and paying rent on the rest. This gives first-time buyers and those who don’t already own a property the opportunity to purchase a share in a resale property or a new modern home.
The buyer pays a mortgage on the share they own and pays rent to a housing association on the remaining share. This means buyers can enjoy the benefits of smaller deposits and smaller mortgage payments, making getting on the property ladder more accessible.
Buying a shared ownership property offers a number of benefits, which is why shared ownership properties tend to get snapped up straight away.
An excellent option for those who would like to own a home but would like to speed up the process as with Shared Ownership you need a much smaller deposit than you do when buying a private sale home. This starts at just 5% of the share you are purchasing so you could end up buying a home much faster than you think. This purchasing option gives many people the best chance of becoming a homeowner.
So, why is the cost of shared ownership lower than other housing options? When buying a shared ownership property, you can start with just a 25% share and the deposit you will be expected to put down will be between 5-10% of your share of the property. Stamp Duty Land Tax can also generally be deferred until your share reaches 80%.
Shared ownership properties are a fantastic option for lots of different buyers, but they’re especially good for first-time buyers looking to get onto the property ladder without having to worry about finding the cash for large deposits.
This way of buying is also ideal for couples that have separated and are looking to buy again on their own, as well as retirees and those looking to free up equity without losing the security of owning a home.
You’ll usually need to meet the following criteria to purchase a shared ownership home:
Here at VIVID, we’re a leading provider of affordable homes and housing-related services in the south of England and 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 could benefit you and your family, please do not hesitate to get in touch.