How can you benefit from Shared Ownership this #sharedownershipweek
Shared Ownership Week runs from October 5th to the 12th and it’s a great time to take a look at what shared ownership has to offer. If you’ve dreamed of owning your own home but have hit the usual hurdles along the way, this is an option that can help you navigate these and finally have a place to call your own.
During Shared Ownership Week, you’ll find a whole host of information available to bring you up to speed with just how it all works. In short, it’s a way of purchasing a percentage of your home and paying rent on the other part. Over time, you can increase the percentage that you own, and reduce the rent. In the meantime, here’s a look at some of the key benefits that shared ownership brings.
Homeownership becomes accessible
Unlike other schemes that have sought to help people get onto the property ladder, you’ll find that shared ownership doesn’t come with an excessive amount of restrictions. You don’t have to be a first-time buyer, you don’t have to be classed as a key worker and, as long as you earn less than £80,000, there’s a good chance that you’re eligible to apply.
Avoid hefty deposits
One of the biggest barriers to homeownership is the deposit that’s needed before you can secure a mortgage. With shared ownership, there are plenty of lenders that are willing to help and, as long as you meet their eligibility requirements, you’ll usually only need a 5% deposit. Let’s have a look at how that compares to buying with the traditional method:
Traditional house purchase
House price – £150,000
5% mortgage deposit = £7,500
Shared ownership
House price = £150,000
25% share = £37,500
5% deposit for your 25% share = £1,875
As you can see, the difference is significant and makes homeownership far more attainable.
The chance to own 100% of your home
While you’ll usually start with anything from 25% – 75% stake in your home, the majority of shared ownership schemes allow you to purchase additional shares in the house. You can even add as little as 1% a year if that’s what you can afford.
Known as staircasing, you can carry on buying shares in the property until you own 100%. At this point, there would be no rent to pay.
Benefit from property prices going up
If you rent a property there is no way you are benefiting from the housing market. With shared ownership, you actually own a stake in the property so if house prices go up you stand to benefit just like any other homeowner does.
Security
With shared ownership, you are in control rather than a Landlord who could change your tenancy. As long as you maintain your payments, you can be secure in the knowledge that you have a home for you, and your family, for life.
Now is the time to act
Shared Ownership Week is the perfect time to explore this option fully and discover if the opportunity is right for you and the professionals at Expert Financial can help you find the perfect deal for you.
