Why Now Is A Good Time To Buy With Shared Ownership
The Covid-19 pandemic has impacted the housing market and personal finances. However, data from Legal & General Mortgage Club found that 93% of first-time buyers are still considering buying.
Whether you’re a first-time buyer or you don’t currently own a property, buying a Shared Ownership home is a way of greatly reducing the cost of taking that first step onto the property ladder right now.
We’ve outlined a few of the reasons why, below:
Lower Deposit Required
Shared Ownership 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 purchased – meaning that the typical deposit for Shared Ownership is much lower than when buying on the open market.
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 purchasing a home without Shared Ownership, or renting privately.
In 2021’s competitive housing environment, it is often 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 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 with the process.
The opportunity to Staircase
With Shared Ownership, residents can purchase more shares of their home when they are financially able to do so. Staircasing allows residents to increase their equity share and will reduce the amount of rent paid monthly. Homeowners can staircase a minimum of 10% at a time and, depending on the terms of the lease, can own up to 100% of their home.
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, then click on this link to take a look at our latest developments.