Shared Ownership
Shared ownership is a part buy/part rent
scheme, which enables you to get on the first rung of the housing
ladder through buying a share in a home. The share purchased can
vary from 25% to 75% but are more usually on a 50/50 basis. You pay
a subsidised rent to a Registered Provider on the share, which is
retained in its ownership. The combined monthly costs of the rent
and mortgage should work out cheaper than the cost of a mortgage on
the whole property. If you wish, you can buy further shares until
you own the property outright however there are some areas where
you can only buy up to 80% of the property.
There are new Shared Ownership properties being built all the
time and Registered Providers such as Festival Housing, Rooftop
Housing Group,Bromford Housing Association and West Mercia Housing
Group will have a list of all the ‘new build’ properties that
they own. There will also be Shared Ownership resale
opportunities which may go on the open market via estate
agents.
There are number of Registered Providers who are
building Homebuy Shared Ownership, at any one time. You will
need to contact us to find out
which Registered Provider this may be, or if you have any
questions about our housing services.
How do I qualify for Shared Ownership?
You must be able to:
- Afford the mortgage, rent and running costs on the proposed
share.
- Raise a mortgage or have a lump sum to buy a share
outright.
- Building Societies will require you to provide 5% deposit
towards the cost of purchase of your share of the property.
- Cover the purchase costs (such as stamp duty and solicitors
fees) out of your savings – £2,000 is an estimated figure, but this
can vary.
Each application is assessed individually, so even if you do not
meet income levels you can still apply. Remember to include all
income, not just wages.
