Don’t Have Access to The Bank Of Mum and Dad? Try Shared Ownership
New research shows that the bank of Mum and Dad is still very much in demand, with one in four new home owners relying on their parents for assistance with the deposit for a new home.
On average, parents lend £18,000 to their offspring in order to help them get on the property ladder; a figure that increases significantly in areas where owning a home is notoriously more expensive. For example, in London the average amount parents lend or gift their children is £31,000, with a massive 41% of first time buyers receiving financial assistance from their family when buying a home in the Capital.
The research, which was undertaken by Legal & General, also found that buyers under the age of 35 years-old are the most likely to get financial help from their parents when buying a home. Indeed, nearly three in five home buyers under the age of 35 ask their parents for some sort of financial assistance.
However, buying your first home doesn’t necessarily mean having to ask mum and dad for a substantial contribution to the deposit. With Shared Ownership, you only purchase a share of a property, typically 25%, and pay a deposit on the smaller share. This means that the deposit required for Shared Ownership is typically considerably lower than when buying a home on the open market.
Therefore, if you haven’t got the luxury of financial aid from family members, then don’t despair - Shared Ownership is a fantastic and affordable way to get on the property ladder.
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