The Benefits of Shared Ownership
Whether you are a first-time buyer or you don’t currently own a property, Shared Ownership is a great way to get onto the property ladder. We’ve outlined a few of the benefits below.
1. Lower Deposit Required
The Shared Ownership scheme allows buyers to purchase a share of a home, typically between 25% and 75%. Due to this, a mortgage is only required on the share you purchase – meaning that the typical deposit for Shared Ownership is much lower than when buying on the open market. Buyers then pay reduced rent on the remainder of the property, along with any service charge and ground rent. With the recent Government announcement on Stamp Duty Holiday, you may also benefit from paying zero stamp duty on the first £500,000 of all home purchases.
2. Reduced Monthly Costs
As Shared Ownership requires a smaller mortgage than when buying a home on the open market, and a subsidised rental amount on the share not owned, the combined monthly repayments can often work out cheaper than if you had purchased a non Shared Ownership home, or if you were to rent privately.
3. More Accessible
Often it’s difficult to find a suitable mortgage on the open market, due to annual income criteria. However, as a smaller mortgage is required for Shared Ownership – it makes getting on the property ladder even easier. Indeed, there are often household income caps (90k for London homes and 80k for homes outside of London) on Shared Ownership properties, to help everyone buy a home.
If you have any questions about income criteria, there are a few options available and suitable providers who specialise in Shared Ownership mortgages who can help the process.
With Shared Ownership, you have the ability to purchase more shares of your home when you are financially able to do so. Staircasing allows you to increase your equity share and will reduce the amount of rent you pay monthly. You can staircase a minimum of 10% and, depending on the terms of your lease, can own up to 100% of your home.
5. Make it your own
Unlike private renting, when you buy a Shared Ownership home you become a leaseholder, which gives you the opportunity to decorate your home as you wish. The pristine interiors are a blank canvas for you to put your own stamp on, from the start.
Are you looking for a stylish and modern home in London or the South East?
Southern Home Ownership is dedicated to providing stylish, high quality and contemporary new homes for sale on a Shared Ownership basis.
If you're interested in owning a Shared Ownership property in London or the South East, then click on this link to take a look at our latest developments.