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 sure 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 this field, specifically in relation to 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 ‘Help to Buy’ schemes, that are also available in your area, please call us on 01473 276119.