Is Shared Ownership right for me?

If you have a regular income and are looking to get your foot on the property ladder but can’t afford to do that, shared ownership could be an excellent alternative. It’s a combination of owning and renting, so you’d pay rent on part of it and mortgage on the remainder.

Here are 5 myths about shared ownership…
 

It’s only suitable for first time buyers – FALSE

It’s primarily used by first time buyers, although people who have previously owned a home may also be eligible. 

You have to share your home with someone else – FALSE

Shared ownership does not mean that you share your home with someone else.

I don’t need to pay anything – FALSE

You’ll need to have sufficient funds for a deposit. There’s usually a reservation fee to pay. Lenders will charge you a valuation fee, and some will charge a mortgage arrangement fee. You’d also pay the legal costs of purchasing the home.

There’s no income restriction – FALSE

There is a minimum income level to ensure you can afford it. Equally, if your household income exceeds a certain level (outside of London, it’s £80,000), you wouldn’t be considered for shared ownership. 

It costs more with shared ownership – FALSE

With shared ownership, you’d buy a share in a home (usually between 25% and 75%) and pay rent on the part that you don’t own. The total monthly cost of the rent and mortgage should be lower than the cost of a mortgage needed to buy 100% of the same home or for renting a similar property. Shared ownership is often supported by government money which reduces the level of rent to be charged.

To learn more about Shared Ownership, click here. To ensure you hear about our latest Shared Ownership developments, please register here or call our New Homes team on 01923 608373.