Shared Ownership – Launching Soon
Introduction to Shared Ownership
Shared Ownership is an excellent opportunity for first-time buyers and those who don’t own a home to secure their dream Allison home on a part buy, part rent basis.
You will pay a mortgage on the share you own and rent to a housing association on the remaining share.
Since you only require a mortgage for the share you’re buying, the amount of money needed for a deposit is typically less than what’s required for an outright purchase. This means you don’t have to save as much.
Why buy a Shared Ownership home?
Shared Ownership is an alternative home-buying product for individuals who aspire to own a home but face financial constraints. There are several reasons why Shared Ownership is a cost-effective option:
- Rent charged is lower than the market rate, and typically amounts to 2.75% of the property value annually.
- The purchase of a share can begin from as little as 75%
- The deposit is only 5% of the share price, not the full market value of the property.
What does part-buy part-rent mean?
Shared ownership allows you to purchase a percentage of a property through a mortgage and rent the remaining portion from a housing association.
You can buy additional shares through ‘staircasing‘ up to 100%, with the price based on an independent valuation at the time of purchasing the further additional shares.
What are the eligibility rules for Shared Ownership?
If you’re interested in purchasing a Shared Ownership home, there are some general eligibility requirements you will need to meet. The general eligibility criteria for Shared Ownership are as follows:
- You must be at least 18 years old.
- Outside of London your annual household income must be less than £80,000.
- Shared Ownership purchasers are often first-time buyers but if you do already own another home, 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 will need access to the deposit amount required. For Shared Ownership, this will only need to be 5% of the equity share you are buying but this will depend on the property and your affordability.
How do I find out more?
We are just finalising the details of the scheme and are looking forward to launching it soon. In the meantime, to find out more about Shared Ownership, speak to your Sales Executive who can put you in contact with an independent new homes mortgage advisor or check your eligible to buy a home through shared ownership using the government’s eligibility checker.