Could Shared Ownership help you onto the property ladder?
As first time buyers continue to face a challenge to get onto the property ladder, many people are looking for more affordable ways to buy their first home.
This has led to the introduction of Shared Ownership, aiming to help first time buyers who are struggling to raise the funds needed to buy their first home.
Shared Ownership allows a person to purchase a share of a house or flat from a housing association or financial institution. You can usually purchase anywhere between 25% and 75% of the property and pay rent on the remaining share you don’t own.
If you’re considering Shared Ownership, you can get the advice you need by talking to one of our residential property experts on 01282 695 400.
Could you benefit from Shared Ownership?
One of the biggest stumbling blocks for many people looking to get onto the housing ladder is raising a deposit.
With a Shared Ownership property you will still need a 10% deposit but this will only be based on the share you purchase, rather than the full value of the property. This can make raising a deposit much more manageable and affordable.
Shared Ownership can also save you money when it comes to making repairs to the property. As the property is a leasehold, in most cases your landlord will be responsible for any maintenance and repair.
However, once you purchase the freehold and own 100% of the property, you will become responsible for the maintenance and repair.
Do you have the option of purchasing a larger share of the property?
In most cases you will have the option to increase your share of the property once you have lived there for a certain period of time. You can gradually increase your share until you own it outright in one of 3 ways:
- Buying the increased share in cash
- Borrowing more from your lender, or;
- Taking out a bigger mortgage from a new lender, paying off your current mortgage and using the remaining funds to purchase a larger share
The cost of any additional share in the property will be at the current market value of the property. So if you want to own another 10% of the property you will need to pay 10% of the current market price of the property.
To find out the current value of the property, you will need a valuation from a Royal Institution of Chartered Surveyors accredited surveyor.
Why getting the right legal advice is vital
Shared Ownership can be complicated and there are a number of restrictions you will need to be aware of before entering into a Shared Ownership agreement.
By speaking to a specialist conveyancing solicitor near you, you will have an expert on your side to guide you through the process and support you with any changes you make in the future.
Here at Residential Matters, our dedicated conveyancers have over 90 years’ combined experience and now help thousands of people move home every year.
If you’d like to talk to one of our dedicated solicitors today, call us now on 01282 695 400.
Or, you can get your free online quote by simply clicking the button below.