The Shared Ownership scheme is exactly what is claims to be – a buyer (first time or currently not owning/selling their only property) has the opportunity to purchase a share in a property, for which they will pay a mortgage. They will then rent from a housing association who retains the remaining share in the property. Due to the fact you are only mortgaging your share of the property (which can be anywhere between 25%-75%), the initial purchase price is reduced significantly – the deposit generally being only around 5% of the share value. Buyers are given the option over time to increase their share, usually referred to as ‘staircasing’, and will, in most cases, reach 100%. The buyer will then own the property outright. Rent on the housing associations share tends to be circa 2.75% of that value per annum.
If you decide that this method would be the perfect fit for you in order to buy your dream home, speak with one of our advisers today. Read on to see if you are eligible for this scheme.
Can you qualify?
In order to be eligible for Shared Ownership you must have a combined household income of under £80,000 (London £90,000).
You must not own a property or a part of a property when your purchase reaches completion – you may be in the process of selling a property when you first apply however, this property must have been sold before completing your purchase.
You must have a good credit history in order for lenders to be confident that you will be able to keep up with mortgage payments for one share and rent for the other however, there are lenders with a more flexible approach to people who want to buy on the Shared Ownership scheme and have bad credit.
You must also have an initial minimum of £5,000 to cover the costs of buying a home.
If you think you could benefit from a Shared Ownership scheme then contact us at View Finance on 0333 320 8685 or info@viewfinance.co.uk and speak to an adviser today!
