Shared Ownership
This is a government scheme where the housing association offering this scheme gives a deposit of between 25% to 75% deposit and you mortgage the other part you purchase. Normally you have a to pay rent on the money that the Housing Association have put in.You also pay your mortgage payment as well. A useful way to get onto the property ladder.
Shared Ownership Q&As
Not all Housing associations offer Shared Ownership to every area in the UK so please search online if you wish to find your local Housing Association who offers Shared Ownership in your area.
These are great schemes and like Help to Buy in the fact they help people get on the property ladder in times of low income and rising property prices.
With Shared Ownership you can buy a newly built home or an existing one through resale programmes from housing associations or your local council.
These are the important first steps in the Shared Ownership process:
It is important to note Shared Ownership and Help to Buy Shared Equity schemes are different.
With shared ownership, you only own a part of the property with an option to buy more.
With Shared Equity, you own all the property from the start but must repay a proportion of its value when you sell it – equivalent to the proportion of government equity you took to buy it.
And because you are only buying a share, the mortgage you will need to secure against the home will be significantly smaller than if you were to buy without the scheme.
You may also be able to save extra cash after you’ve paid your rent, which you can invest later in further shares of your home.
Once moved in, you won’t be able to make any major changes or improvements unless it’s stated you can in the lease and you have permission from the landlord.
If you decide to sell before owning 100% of a Shared Ownership home, the housing association has the right to find you the buyer. And even once you own 100% of it, you may have to give the housing association first refusal when you come to sell.