Catalyst are helping first time buyers onto the property ladder in Brent – London’s Borough of Culture 2020 Recognising its thriving cultural scene, whilst committing to extend local opportunities, the London Borough of Brent is celebrating its year as London’s Borough of Culture 2020. Adapting to lockdown guidance, numerous events in art, music, literature and theatre will…
Shared ownership gives first time buyers and those that do not currently own a home the opportunity to purchase a share in a new build or resales property, The purchaser pays a mortgage on the share they own, and pays rent to a housing association on the remaining share, Because the purchaser only needs a mortgage for the share they are purchasing, the amount of money required for a deposit is a lot lower when compared to the amount that would be required when purchasing outright.
The purchaser has the option to increase his share during theirtime in the property via a process known as ‘s1aircasing’, and in most cases can staircase all the way to 100%, thereby owning the property outright. snared ownership properties are always leasehold.
Why buy a Shared Ownership home?
Shared Ownership is essentially for people who would like to own their own home but cannot aflam to buy an the open market. The cost of ownership is reduced by:
- The rent is less than the rate charged on the open market and usually charged at 2.75% ofthe property value per annum,
- You can start with a little as 25% share in some cases,
- Your deposit can be 5% of the price of the share, not of the whole property.
- Stamp duty land tax (SDLT or simply ‘stamp duty’) can generally be deferred until your share reaches 30%.
Shared Ownership properties can often be found in private developments as the provision of a certain number of Shared Ownership units will often be required as a part of the planning permission for a development, This can put affordable housing in the heart of some prestigious postcodes.
When I part-buy/part-rent my home, what am I buying?
Effectively you are buying a leasehold house or flat. that may be either new or a resale. However, as you cannot presently afford to purchase outright, you are paying rent on the portion that you cannot afford.
You have the option to buy further shares, up to and including 100% ownership when you are able to do so.The price of buying further shares will be based on an independent valuation at the time that you purchase the further share.
How to buy a Shared Ownership home
Getting started with Shared Ownership is not as complicated as people might think. First of all. you should check if you are eligible. Please note that in addition to the general terms. some Housing Associations and boroughs have their own terms.
Through Share to any you can find suitable Shared Ownership properties, show your interest for properties and contact Housing Associations for viewings.
When you have chosen a property, you will have to make sure you have the required deposit and get a mortgage. At Share to Buy you can compare and apply for shared Ownership mortgages.
Shared Ownership revamp could help more first time buyers onto the property ladder Housing Secretary, Robert Jenrick, announced the government’s Affordable Homes Programme on Tuesday 8th September – a new investment that will see a huge £12 billion boost into the housing sector, providing up to 180,000 new homes across the country. On the same…
Hear from Shared Ownership experts in the first of Radian’s new series To help budding buyers who are looking to take that first step onto the property ladder, Radian Homes are releasing a series of four podcasts all about Shared Ownership this September. What is Shared Ownership? For those who can’t quite afford the…
First time buyer homes available through Shared Ownership in Cambridge On Saturday 12th and Sunday 13th September, L&Q are launching a collection of Shared Ownership homes at the highly anticipated Darwin Green development in Cambridge. A total of 13 homes will be made available in this initial phase which includes ten two-bedroom houses, and three…