Buying a home can feel like a daunting experience, especially if it’s your first time stepping onto the property ladder. There are lots of routes you can take to become a home owner, and Shared Ownership is just one of them. But why should you choose Shared Ownership? We’ve listed all the reasons here, so keep reading to find out!
1. Step on the property ladder
Shared Ownership isn’t just for first-time buyers – as long as you meet the eligibility criteria, you could step onto or up the property ladder as suits you. You could even use this scheme to downsize!*
What’s more, with Shared Ownership, you can choose your dream home in a location right for you. From resales homes to new houses and apartments, there’s plenty of choice. It’s as easy as these four simple steps:*
2. No inspections!
Buying with Shared Ownership means that you buy between 25% and 75% of your new home and pay a low-cost rent to us on the remainder*. This means you get a lot of the benefits of home ownership, including no inspections!
So you can have peace of mind that you won’t be rushing around with the hoover late at night because your landlord is coming to visit the next day.
3. A place to call home
Because you’re buying a percentage of your home when you choose Shared Ownership, you actually have a lot more security than when you rent. As long as you continue to pay your rent and mortgage, you can stay as long as you like.
Love a pop of colour? You’ll also have a lot more freedom when it comes to decorating your new home, compared to if you rent. So you can paint the walls and hang photos to really make a home you’re proud of.
If you’re looking to make a change that may affect the value of your home, you’ll need to speak to us about it first, but the good news is that we approve most requests!
4. Low deposit price
Remember when we said you buy a percentage of your home? Well, the good news about this is that instead of paying high deposits (such as 10% of the overall property value, like private sale), you may only need to pay 5% of the share you’re purchasing*.
This looks a little different for everyone, but an Independent Mortgage Advisor can help you to understand how much of your new home you can buy. But here’s a handy example to show you what a typical Shared Ownership purchase looks like*:
The 5% deposit just means that your next move could be closer than you think, as you shouldn’t need to spend as long saving for your new home.
5. Go at your own pace
When you first buy your home, you’ll get a lot of advice about the percentage you can purchase. But you won’t have to stay on the leasehold forever. Designed to suit a variety of situations, you can choose to keep your original shares the same for as long as you like, but you can also go through a process called “staircasing”.
This means that you can – when you’re ready – own more of your home*. You can staircase whenever you like, but you will have to speak to an IFA and Solicitor again. But the good news is, the more shares you have, the less your rent will be!
Even better, it’s possible to staircase to own 100% of your home*. If you choose to do this, you will no longer pay us rent, and the home will be yours.
Have questions? Want to find out more? Not to worry, our team of Shared Ownership experts are only a phone call away.
T: 0800 145 6663
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^Reservation will be subject to a satisfactory financial assessment. Completion dates are subject to change. Affordability and eligibility criteria apply. All figures are illustrative based upon buying a minimum share. Purchase share values will be determined based upon applicant’s individual financial circumstances, in line with Homes England guidelines. Applicants will be referred to a nominated mortgage advisor for a financial assessment and will be expected to maximise the percentage of share they purchase. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP WITH PAYMENTS ON YOUR MORTGAGE OR OTHER DEBT SECURED ON IT. Correct at time of creation – 12 August 2019.