Struggling to get onto the property ladder? Shared ownership might be the answer you’ve been looking for. We break down exactly what shared ownership is so you can see whether it’s the right option for you.
What is it?
Shared ownership is where you buy a share between 25% and 75% of a home’s value and pay rent on the other share. You can then buy a bigger share of the property further down the line if you want to.
Who can do it?
To be able to qualify for the shared ownership scheme, you will need to fulfil the below criteria:
- Household income is £90,000 per year or less
And one of the below:
- You are a first-time buyer
- You used to own a home but can’t afford to buy one now
- You are an existing shared owner looking to move
What are the benefits?
Stepping stone - the primary selling point for this scheme is that it’s getting you one step closer to owning 100% of a property. You can secure a property you love but can’t quite afford yet, then gradually increase your percentage of ownership further down the line.
New build - shared ownership properties are often in a modern building, meaning they are easy to maintain and built to a high specification. For a first-time buyer, this is particularly comforting as there are fewer wear and tear problems to deal with.
Improved credit score – although there is a small temporary drop in credit score, over time, having a mortgage and paying off your loan have a positive impact on your credit rating.
Reduced monthly outgoings – typically, the combined mortgage payment and housing association rent is less than if you were just renting the same property.
Security – you don’t have a landlord who could unexpectedly end your tenancy, meaning you’d have to move out. Instead you can increase your share in your property at your own pace, knowing that your dream property is already secured.
Learn more about shared ownership, or to find a property offering shared ownership, contact your local Foxtons branch.
