Shared Ownership is becoming an increasingly popular route to getting on to the property ladder for first time buyers. If you find yourself in a position where you cannot afford to buy your own home, shared ownership allows you to buy a share of a home and rent the remaining share.
Shared ownership properties are sold through housing associations who give you an opportunity buy a stake in the property. You can have a stake between 25% and 75% of the property, using a deposit and a mortgage. You have to pay rent to the Housing Association for the remaining share that the Housing Association will be holding along with you. Shared ownership properties are leasehold properties and therefore you will be liable to pay a service charge on a monthly or yearly basis.
You will be allowed to buy a greater share of your property at any time from the housing association. This procedure is called 'staircasing'. The cost of the share you wish to purchase will depend on the market value of the property at the time you intend to purchase the share. At the time, you will have to ensure that you ahve the funds available to buy the extra share you require or mortgage finance for this purpose.
While shared ownership is a great way of buying your own property, it may not be the ideal solution for everyone. The advantages of buying a shared ownership Property include the following:
This type of house move can be complicated for people unfamiliar with the particular procedures involved. Legend Solicitors will be able to advise you on all of the steps involved.