Shared Ownership Mortgages
Shared ownership schemes are usually offered by housing associations to allow you to party buy and part rent your home. If you buy a share of your chosen property (typically between 25-75%), you will take out a shared ownership mortgage and then pay an affordable rent to the housing association on the remaining share that you don’t own.
To be eligible for a shared ownership mortgage you will need to have a household income under £80,000 and be a first time buyer, previous home owner but can’t afford to buy one now or an existing shared owner.
What is ‘staircasing’? ‘Staircasing’ is When you become the owner of your home and you buy more shares, of course your new share will depend on how much your home is worth when you want to buy the shares. This will be more than your first share if property prices have increased or less if property prices have gone down in your area.
Selling your home – If you are an owner of a shared ownership property and are looking to sell, the housing association have the right to buy it first, known as ‘first-refusal’. The hosing association also has the right to find a buyer for your home. If you own 100% of your home you can sell it yourself.
Shared ownership schemes can be a great way to get on to the property ladder and you might find that you can buy a bigger home than you would of otherwise been able to afford.
To discuss if you qualify for a shared ownership mortgage please contact us for a FREE initial consultation