Foster Denovo|News & opinion|News|Shared Ownership Week 2019

Shared Ownership Week 2019

Buying and owning your own home is something most of us aspire to, but for many, with rising house prices and the need for a substantial deposit, it can also feel like a distant dream and completely unachievable.

From 19th – 25th September Shared Ownership Week will be taking place across the UK, aiming to raise awareness about the shared ownership scheme and support people in becoming homeowners.

What is shared ownership?

In a nutshell, shared ownership is a more affordable way of buying a home, if you can’t quite afford 100% of a mortgage. It allows you to purchase a share in a new build or resales home – usually a minimum of 25% of the property’s value – instead of buying it outright.

With the shared ownership scheme, you will only need a deposit for the share of the home you are buying and, therefore, mortgage payments will only cover your share. You will then rent the part you don’t own at a reduced rate. Later on, you will have the opportunity to buy more shares until you fully own the property.

The scheme helped 93,905* households to get onto the property ladder between 2005 and 2015.

How does it work?

Here’s a brief guide to buying a home through the shared ownership scheme:

  • register with your local registered provider (RP) and local home buy agent;
  • have an independent financial assessment from an independent financial advisor;
  • once you have everything you need to apply and understand your affordability, apply for a property that you want to buy;
  • reserve your property;
  • await your final mortgage offer;
  • exchange and complete!

Could you benefit from the shared ownership scheme?

As shared ownership requires a much lower deposit and allows you to make smaller monthly payments, it may be a much more affordable option for you.

The general eligibility criteria for shared ownership is:

  • your income is below £90,000 in London or £80,000 (elsewhere in England);
  • you have a good credit history;
  • you must be at least 18 years old;
  • you must live or work in the borough where you would like to buy your shared ownership property;
  • you’re a first-time buyer; or
  • you’ve previously owned a home but can’t afford to buy one now;
  • you’re a shared ownership homeowner who is selling to buy a new home; or
  • if you are military personnel, you may be given priority over other applicants.

If you are aged 55 or over, you can benefit from the ‘Older people’s shared ownership’ scheme. There is also a scheme called ‘Home ownership for people with disabilities’ for people with a long-term disability who are unable to find a suitable home.

Different providers may ask for separate or additional requirements, find out more and get answers to your question by reading the Shared Ownership frequently asked questions here.

Buying your first home is a huge commitment, but it needn’t be scary. If you can’t afford to buy a home outright, shared ownership can give you that extra peace of mind and support to help you take your first steps onto the property ladder. Find out more about shared ownership week here.

 Already part of shared ownership?

If you’ve purchased a share in a property through shared ownership already, you can buy more shares in your home – this is referred to as ‘staircasing’. There is a range of factors which affect the number of shares you can buy, when you can buy and how much they cost.

*National Housing Federation 

Your home may be repossessed if you do not keep up repayments on your mortgage.

This article is for information purposes only and does not constitute advice or a personalised recommendation.

 Information correct as of 17th September 2019

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