Many people would like to own their own homes but find that the
cost of housing in their area is too expensive for them to get
a foot on the property ladder or buy a suitable sized property
to accommodate their family. Affordable Housing has been developed
to help people in this position.
What is Shared Ownership?
Shared ownership is a 'part rent - part buy' scheme.
Instead of purchasing a home outright at its full market value,
you purchase a share of your home and pay a subsidised rental on
the remaining share. At a later stage you can purchase extra shares
of the property until you own your own home outright. A few properties
have a cap on the total percentage of the property you may purchase.
Buying a “share” in today’s market isn’t
a bad idea to safeguard against potential falls in the value of
property.
Who can apply?
Anyone whose earnings are insufficient to raise a mortgage to
buy a new build property outright may apply. In addition a purchaser
must show a housing need, eg. be living in rented accommodation
or with relatives. A household income of between £18,000
and £60,000 is required, plus £2,000 savings to cover
associated fees such as solicitors and valuation fees. However
in the case of a single purchaser they could earn as little as £15,000
and still qualify. The type of property available to you will be
subject to your housing needs.
When purchasing a shared ownership property, it is important that
you choose a mortgage specifically intended for this scheme, as
many high street lenders do not lend on shared ownership properties.
So it is vital to make such that you discuss your mortgage needs
with a specialist Independent Financial Advisor prior to making
an application to purchase a shared ownership property.
At Simply Money Ltd we have a specialist team who have a wealth
of experience in shared ownership leasehold purchases and shared
ownership mortgages. Our friendly staff will be happy to guide
you through the entire process from start to finish. If you would
like to know more about these schemes including the latest 'open
market' and keyworker schemes, that are also available in
your area, please call us on
01473 276119.
For further information on shared ownership properties in this
area go to:
www.flagship-homes.co.uk or www.orbitfirststep.org.uk
Your home may be repossessed if
you do not keep up repayments on your mortgage.
You can choose how we are paid for mortgages: pay a fee,
usually 1% of the loan amount, or we can accept commission
from the lender plus a fixed fee (£95 for remortgages, £150
for purchases or £250 for Shared ownership mortgages).
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