logo

Buying

What is shared ownership and is it for you?

Posted on: Thursday, August 4, 2022


What is shared ownership and is it for you?

The property market isn’t easy to navigate, particularly for first time buyers and those on a tight budget. If you’re considering purchasing a shared ownership property, read on to discover if it’s right for you.

 

How it works

Shared Ownership is a government scheme, offering first-time buyers and those who do not currently own a home opportunity to purchase a share in a new build or a resales property. Designed to help those with small deposits and incomes get onto the property ladder, the premise is to buy a stake and pay rent on the leftover amount. 

 

Shared Ownership is a government scheme

 

How to qualify

Criteria differs depending on the housing association, but generally to apply for shared ownership you must:

• Be 18 or over

• Not currently own a home

• Be unable to afford a suitable home

• Have a good credit score

• Earn £80,000 or less per year as a household

 

The Upside

If you opt for shared ownership, you will own a share of the property (typically between 25% and 75%) and a housing association will own the rest, which you will be charged for in rent at a rate much lower than market value. You can buy more of the property over time, but you only pay mortgage payments on your share, making the monthly cost significantly lower than a full ownership.

 

The Downside

Although there is the option to purchase more of the property over time, you can only add 10% each time, which is known as ‘staircasing’. In the time it would take to own 100% of your home, the house prices in your area could have increased, meaning you’ll have to pay more each time your house is valued. 

 

Find Your First Home with The Guild

Ready to search for your first home? The Guild are here to help. Our team of trustworthy professionals will guide you through the process whilst offering as much help and advice as possible.

 

 

 

Blog

Buying property in 2025

Friday, December 13, 2024

The beginning of a new year is a time for fresh starts, renewed optimism, and exciting changes,...

Read More

20 homes for sale to beat the Stamp Duty changes in 2025

Saturday, December 7, 2024

Are you a first-time buyer looking to make your move before the 2025 Stamp Duty changes shake up...

Read More

Buying a period property

Friday, November 22, 2024

Period properties, oozing with character, can offer a lot more charm than modern new builds. You...

Read More

Read What Our
Customers Say

"

Having recently Sold my house with Philip Martin Estate Agents I cannot praise the whole experience enough. From the first telephone conversation to the last it has been impressive. Professional, Polite, Guiding, Encouraging. I do need to mention Jack Loader, no question or query was too much trouble, making the selling process a pleasure. 

"

Having recently Sold my house with Philip Martin Estate Agents I cannot praise the whole experience enough. From the first telephone conversation to the last it has been impressive. Professional, Polite, Guiding, Encouraging. I do need to mention Jack Loader, no question or query was too much trouble, making the Selling process a pleasure. Totally stress free.

"

James and his team handled a complex sale (house and adjacent land owned by a third party) with great professionalism and innovation and determination to secure our sale. He was also cognisant of our time scales in that we had not secured an onward purchase or rental property. James is an extremely approachable agent who always worked with us to successfully achieve our goals and certainly went ‘the extra mile’ when required. We cannot recommend him highly enough.

"

"We were so pleased with all the correspondence with Phillip Martin and you all certainly delivered a very professional and friendly service. We would particularly like to thank you for all your personal correspondence with Mrs. Dianne Jones. It went above and beyond and we are truly grateful.  As I mentioned before we have only ever bought two houses and they were both through Phillip Martin. We will certainly use you guys in the future!"

"

Very efficient and personable service helped us find a perfect place. Trustworthy and effective. Thank you.

"

Dear Jack, I have moved into my new bungalow and it is very nice. I just wanted to take this opportunity to thank you for all of your efforts on my behalf. You have behaved rapidly and helpfully to assist me with all of the problems that arose for me in one of several difficult projects at once. Thank you very much.

How Much is Your Property Worth?

How Much is Your Property Worth?

To find out how much your property is worth in the current market, get in touch with us today!

Book a Valuation