Thursday, 11 July 2013

Shared Ownership what’s it all about…?

There has been much news recently concentrating on promoting shared ownership, we thought it was time that we expelled some myths.

Shared ownership doesn't really mean that you share your house/flat with anyone, what it does mean is that someone is helping you out to be able to buy a property. You can buy as little as 25% of a property or as much as 75% with the Housing Association or a private developer keeping the remaining share of the property and you pay rent to the Association or Developer on the percentage of the property that you don’t own.

The schemes are designed to help young people get on to the property ladder with a 5% deposit rather than the 10% required by most mortgage lenders.
It is thought that there are 170,000 shared ownership properties across the UK and developers are building more every day.

Of course with everything in life there are pros and cons, we have set out the most important ones here:
The Pros:
  • Younger house buyers can get on the housing market with a 5% deposit

  • You can buy a nicer property than you would have been able to afford

  • You are eligible to buy these houses even if you earn quite a lot (capped at £60,000 per annum)

The Cons :
  • You are paying both a mortgage and rent

  • You can’t sublet the property

  • They can be more difficult to sell, as you don’t own the full 100%

For more objective advice why not watch Cherry Healey’s Property Virgins on Mondays at 8pm on BBC3
for a full insight into what the younger generation think about these houses.

There are other ways of getting help with buying a house and the new Government Schemes are those that aren't limited to first time buyers.
 Why not call our team now to find out how we can help you 0300 11 11 239.

Happy house hunting.

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