Top 5 facts about Shared Ownership to kickstart the New Year
Were you bored of mum trying to sing along to the Christmas hits and dad hogging the TV remote over Christmas and want 2017 to be the year you buy your own home?
Well you’re in luck! Shared Ownership is a great option for first time buyers and other home hunters alike to buy a home with a smaller mortgage (great for those in high home value areas) and a smaller deposit (even better for those who can’t raise the 10 or 20% deposit often required on the open market!). Here’s our five facts about Shared Ownership that are guaranteed to get your home hunting in 2017 off to a roaring start.
1. Confused about what the ‘shared’ bit means? The property won’t be split into pieces, it just means you only need to raise a mortgage for what you can afford and then pay a rent on the remaining part or ‘share’ of the home. If you want to know more, we’ve written a blog about this to go along with our downloadable guides.
2. The deposit you need is based on the share you purchase, not the full market value of the property. For example, if you were buying a 40% share of a home worth £180,000, you’d need to be able to buy £72,000 of the home, typically with a mortgage and deposit. And as you often need only a minimum 5% deposit, you could buy the 40% share of the home worth £180,000 with a deposit of £3,600. You might suddenly find you can afford to buy a home you never thought you could.
3. If you prefer the blank slate of a newly built property, or a home with a history, Shared Ownership has got you covered. Our website is regularly updated with both brand new and older properties so take a look at our property search to see the properties available in your area.
4. You can buy more shares later on, known as ‘staircasing’. This means you can turn your 40% in to 50% or more! In most cases you may even be able to purchase the property outright when you can afford to do so, which means no rent to pay! Remember you should always check with the Housing Association you’re purchasing from beforehand if you’d like to be able to do this in the future.
5. Worried about selling later on? Don’t be! Plenty of people do it and the process is often managed through your Housing Association or an estate agent. Lots of our registered applicants are looking to purchase a property in an already established area so your home could be the pick of the bunch. We’ve written a blog post about this too!
We hope these facts have given you a heads-up on some of the essentials of Shared Ownership. You can find plenty more information in our handy guide to Shared Ownership but you can also ask any questions you have by e-mailing firstname.lastname@example.org or by calling us on 0800 456 11 88.