Shared Ownership - Am I Eligible?
As long as you can show at least three years of self-employed accounts, you should be able to obtain a mortgage (providing your income is sufficient, of course). You should seek independent financial advice about suitable mortgages and about managing the ongoing costs of home ownership if your income varies from year to year.
Yes, if you are looking to purchase a shared ownership property in England (with the exception of London) the maximum household income is £80,000. In London, the maximum household income is £90,000 per annum.
There is no set minimum income allowance for shared ownership. Each property will have its own valuation and the housing association will determine the minimum income required for that property to be affordable to people earning under the maximum allowance threshold. If you have a large amount of cash to put down on a property this may make the minimum income more affordable.
No, shared ownership is only available to first time buyers i.e. those that do not own any other property, owning investment properties will make you ineligible for the scheme.
If you are able to demonstrate that you can get a mortgage and maintain the payments, you may be able to buy through shared ownership. You will have to undergo a financial assessment with a financial advisor working with the housing association you buy through to assess this.
Some lenders will allow EU/EEA residents to have a minimum 2 years UK address history. If you are a non EU/EEA citizen, then lenders will require a full 3 year UK address history.
Your gross salary is used to assess your eligibility. This means before any deductions such as tax, pension, salary sacrifices, student loans etc. If you get any bonuses, overtime or commission, 50% of it will be considered. Second jobs and other forms of income are also included. Student loans and bursaries are not an acceptable form of income and will not be considered by housing providers.
Benefits will not be included as income when assessing your affordability, therefore it is unlikely you will be accepted for a shared ownership property or be able to find a mortgage.
In order to buy you will need to be able to take out a mortgage. If your credit history stops you from doing this, then you will not be able to proceed. Before renting a property to you, housing associations will run a credit check. In some cases they will not allow you to rent the property if you have bad credit, so it is worth asking them about their policy before you view the property.
To be eligible you will need to show that your current property is unsuitable for you. You will need to obtain written support for your application from your Council. The housing provider you are buying through will help you obtain this support and they will keep this on your file. Existing home owners must have sold the property, or had their name removed from the mortgage, before they can exchange contracts on a property bought through shared ownership, or they sign a rental agreement for an affordable rental property.
Shared ownership is not available to existing home owners, therefore you will not be eligible for shared ownership if you own a property abroad. You will have to sell the property you own abroad to be eligible to purchase a shared ownership home in the UK.
You should always check the eligibility required with the housing association selling the property, as they may have specific criteria.
You must be at least 18 years old
Outside of London your annual household income must be less than £80,000
In London your annual household income must be less than £90,000
You should generally be a first time buyer, i.e. you don’t already own a home. If you do already own, you must be in the process of selling it
You should not be able to afford to buy a home suitable for your housing needs on the open market
You must show you are not in mortgage or rent arrears
You must be able to demonstrate that you have a good credit history (no bad debts or County Court Judgements) and can afford the regular payments and costs involved in buying a home
You should have savings or to be able to easily access at least £4,000 to cover the costs of buying a home. This is a guideline figure – the actual amount you need will depend on the Help to Buy option you choose
In most cases you will also need to have enough savings or be able to easily access a minimum 5-10% of the equity share you are buying, as a deposit.
19th March 2017
Saturday 18th March saw over 4,400 attendees to London’s No.1 event for first time buyers, the London Home Show Spring 2017.
With 47 exhibitors under one roof, the event offered attendees the opportunity to speak to the biggest names in the first time buyer sector, including housing providers, financial advisors, legal experts and more. Attendees could register their interest in the properties and services on offer from exhibitors, and thousands of leads were generated over the course of the day.
15th March 2017
This guest blog comes from Southern Home Ownership, sponsors of the London Home Show Spring 2017.
Southern Home Ownership is part of Southern Housing Group; one of southern England's largest housing associations, with a growing portfolio of over 26,000 homes across London and the South East. We’ve been helping buyers onto the property ladder for over 30 years, making home ownership a reality for more than 4000 households.
15th March 2017
Our latest guest blog comes from L&Q, sponsors of the London Home Show Spring 2017. The blog, by L&Q Regional Sales Director, Lucy Chitty, looks at L&Q's new Shared Ownership awareness campaign, PricedIn Living.
14th March 2017
Millennials in the UK will spend an average of £53,000 in rent by the time they turn 30, according to a report by the Resolution Foundation. With many young people unable to buy their own property as they are paying so much in rent, increasing numbers are choosing to live with parents while they save. For those without this option, Shared Ownership offers an alternative, allowing purchasers to get on the ladder with a much smaller deposit.