Are you tired of renting and dreaming of owning your own home? Shared ownership might be the perfect solution for you. In this blog post, we will explore what shared ownership is, how it works, and whether it is the right choice for you.
What is Shared Ownership?
Shared ownership is a government-backed scheme that allows you to buy a share of a property (usually between 25% and 75%) and pay rent on the remaining share. This means that you can get on the property ladder with a smaller deposit and mortgage.
Shared ownership properties are usually new-build homes, but some older properties are also available. The scheme is primarily aimed at first-time buyers, key workers, and those who cannot afford to buy a home on the open market.
How Does Shared Ownership Work?
When you buy a shared ownership property, you become a leaseholder. This means that you have the right to live in the property and can sell your share at any time. However, the housing association or the shared ownership provider has the right to buy back your share before you can sell it on the open market.
You will need to take out a mortgage to buy your share of the property. The amount you can borrow will depend on your income and the size of the share you are buying. You will also need to pay rent on the remaining share, which is usually set at an affordable level.
Shared ownership properties are usually sold on a leasehold basis, which means that you will have to pay service charges and ground rent. These costs can vary depending on the property and the location, so it's important to factor them into your budget.
Is Shared Ownership Right for You?
Shared ownership can be a great option for those who are struggling to get onto the property ladder. It allows you to buy a share of a property and gradually increase your ownership over time. This can be particularly beneficial if you are unable to afford a large deposit or a high mortgage.
However, shared ownership does have its limitations. You will still need to meet certain eligibility criteria, such as having a certain level of income and not owning another property. You will also need to consider the costs associated with shared ownership, including mortgage repayments, rent, service charges, and ground rent.
If you are considering shared ownership, it's important to do your research and seek professional advice. A solicitor specializing in shared ownership can guide you through the process and help you understand your rights and responsibilities as a shared owner.
Shared Ownership: How It Works - https://lynwoodsolicitors.co.uk/how-does-shared-ownership-work/
Shared ownership can be a stepping stone to owning your own home. It offers an affordable way to get onto the property ladder and provides the opportunity to increase your ownership over time. However, it's important to carefully consider your financial situation and seek professional advice before making a decision.
Whether shared ownership is right for you will depend on your individual circumstances and goals. By understanding how shared ownership works and seeking expert advice, you can make an informed decision and take a step closer to owning your own home.