What is shared ownership?
Shared ownership is a scheme that allows buyers to purchase a share of a property, usually between 25% and 75%, with the remainder owned by a housing association. Buyers then pay rent on the share they don’t own.
Am I eligible for shared ownership?
To be eligible for shared ownership, you must be at least 18 years old, have a combined household income of less than £80,000 per year (or £90,000 in London), and cannot afford a suitable home on the open market.
Who should I speak to about a mortgage for a shared ownership property?
Speak to an Independent Financial Adviser (IFA) with the specialist knowledge associated with part buy – part rent properties. If you and a partner are purchasing the property they will take into account your joint income when assessing your ability to cover a mortgage, the rent and any other charges.
What are the costs associated with shared ownership?
The costs associated with shared ownership include a mortgage, rent on the portion of the property you don’t own, and service charges. You may also need to pay stamp duty and legal fees.
What happens if I want to buy more of the property?
You can buy more shares in the property through a process called ‘staircasing’. This can be right up to 100% ownership and therefore reducing your rent to zero. You will need to get the property valued and pay for any legal fees and valuation costs.