London Home Show Countdown: LQPricedIn
Guest blog: Five things worth knowing about Shared Ownership with L&Q
Got your heart set on buying your first home, but struggling to find a property in your budget? Or maybe you’re having to compromise on your dream location because property prices there seem too high? Shared Ownership could be the answer. The alternative route to home ownership is based on quite a simple principle, however making sense of all the jargon surrounding it can feel daunting. The team at L&Q PricedIn are on hand to help.
Olivia Moss, L&Q’s Marketing and Brand Director, answers some key questions on the alternative home-buying scheme.
So what exactly is Shared Ownership? Does it mean I have to share my home with a flatmate?
“Shared Ownership means you buy a share of your home, at least 25%, paying a mortgage on the share you own and a subsidised rent on the rest. There’s no sharing with strangers! It is your home, which you part-own and part-rent: it is designed to be the best of both worlds. Plus you can buy additional shares in the property if it suits you, so that one day you own the property outright.”
Sounds great, but what makes it more affordable?
“With Shared Ownership, deposit levels can be as low as 5-10% of the share you purchase, giving many first-time buyers a much more realistic savings target. For example, at Weavers Quarter in Barking prices start at £72,750 for a 30% share of a one bedroom apartment, so a 10% deposit is just £7,275. Our award-winning, multi-phase scheme is a partnership with the London Borough of Barking and Dagenham, and we have just launched the latest phase of homes. As London’s best value borough, it is a fantastic option for first time buyers, with prices half the London average.”
I’m confused, is Shared Ownership the same as Help to Buy?
“No, Help to Buy is another route onto the housing ladder, which helps first-time buyers buy a new-build home with the support of a government equity loan. This loan is up to 40% of the purchase price within London, or 20% outside London, and is interest free for up to five years, making your monthly mortgage repayments more affordable. However, buyers must put down a 5% deposit on the entire property, which can be out of reach for many people looking for a first step on to the ladder. “
Great! Where can I buy a Shared Ownership home? Will it be in a dodgy area where no one else wants to live?
“L&Q have developments across, in and outside of London, where Shared Ownership homes are available to buy – there really is an area and a home to suit everyone. One of my favourite areas is Greenwich Peninsula. It’s a stone’s throw from the world-famous O2 Arena and with museums and cinemas, a golf driving range and beautiful river walks, the homes offer plenty to do on your doorstep. Prices start from £118,750 for a 25% share of a one-bedroom apartment.
Similarly, L&Q @ The Denham Film Studios in Buckinghamshire dispels the myth that Shared Ownership homes can’t be glamorous! Located on the site of what was once the largest movie studio outside Hollywood, residents are following in the footsteps of the casts of Brief Encounter and Great Expectations. Denham is enveloped by Colne Valley Regional Park with over 200 miles of river and canal and over 60 lakes, despite only being a 25 minute train journey from central London. Prices start at £75,625 for a 25% share.
If you’ve set your sights on West London, L&Q @ Acton Gardens is the perfect option. A selection of two-bedroom apartments remain available at what is the largest regeneration project in West London. The new eco-homes are designed for both young professional and families alike, with a one acre green space forming the epicentre of the latest phase. Around the corner are a wide range of public facilities for residents, including a new sports ground and a shopping plaza, whilst a youth centre and a series of play areas are perfect for kids. Visit the PricedIn website to stay up-to-date as more information is released.”
This sounds amazing – what’s the next step?
“The first step to applying for an L&Q Shared Ownership home is to visit our PricedIn website and fill out our eligibility form. There are certain criteria you must match to be eligible for Shared Ownership, which ensures that the scheme helps first time buyers. Once your eligibility has been confirmed, you can register for the properties you’re interested in. We’ll then keep you up-to-date with pricing and availability, specific property eligibility requirements, and open weekends.
Come and visit us on the PricedIn stand at the London Home Show to find out more.”
To find out more, take a look at the step-by-step guide to Shared Ownership with L&Q at lqpricedin.co.uk
If you want to know more about the differences between Shared Ownership and Help to Buy, visit lqpricedin.co.uk/learning
The London Home Show will be taking place at the QEII Centre in Westminster on Saturday 22nd September, 11am-5pm. Get your free tickets today at sharetobuy.com/homeshow.