East London is an exciting area that contains some real property hotspots. Areas like Shoreditch and Hoxton have long been known as the Capital’s trendy areas and, due to their proximity to Central London and their vibrant nightlife, shopping and entertainment scenes, continue to evoke high demand among buyers. However, while the areas of East London closer to the city centre may be out of reach to most first time buyers, there are plenty of up and coming neighbourhoods in the area that would be in many first time buyers’ wish lists. Hackney, Walthamstow, Haggerston, Newham, Homerton, Plaistow... East London has no shortage of areas with the “cool” factor.
But how do you get your foot on the ladder in and around one of London’s most desirable areas?
Like many first time buyers, you may well feel like East London is out of reach for you. However, your dream area could be closer to your grasp than you think.
Properties available for shared ownership in East London could be a great way for you to get your foot in the door in some of the most desirable areas in the capital. A government-backed scheme, shared ownership can help first time buyers buy a home that otherwise would have been out of reach. It essentially means that, rather than take out a mortgage to purchase 100% of the property, you take out a mortgage for the share you can afford - typically between 25% and 75%. The other proportion of the property would be owned by the housing association, who would then rent it back to you at a subsidised rate.
To be eligible for the shared ownership scheme, you would need to be a first time buyer, or have sold your current home before you purchase. Your household income should also be less than £80,000, or £90,000 in London.
As well as helping people to get onto the housing ladder in East London, a shared ownership scheme also offers you the opportunity to buy the remaining proportion of your home as and when you can afford to. This process is called staircasing and is a great way for people to work towards full property ownership at a pace that is affordable for them.
While most regular buyers are looking at raising a deposit of between 10% to 20%, with shared ownership, you could be able to secure a deal with deposits typically being 5% to 10% of the share value of the property owned. This makes getting on the housing ladder easier for those that feel like a larger deposit is out of reach, or would take many years to save up. Not all mortgage companies offer shared ownership mortgages, but there are several mainstream lenders that do so at very reasonable rates.
Get in touch today to find out how shared ownership could be the key to your new home in East London.Search East London