Posted: 18 Feb 2017
#New Home #Affordable Home
What is shared ownership? How does it work? Are you eligible?
Are you looking to purchase your first home, but aren’t quite sure what Shared Ownership is? We’re on hand to talk you through how it works and whether you’re eligible.
What is Shared Ownership?
Shared Ownership is a service we offer to first time buyers. It’s a Government-backed initiative that provides an affordable home ownership option. This is a great stepping-stone to get on the property ladder. Plus, it often works out to be cheaper than renting.
You can rest assured that pricing for Shared Ownership properties are strictly regulated by the Royal Institute of Chartered Surveyors (RICS). They ensure that you are paying a price that accurately reflects the current market value.
How Shared Ownership works?
Shared Ownership is straightforward. You simply buy as much as you can afford. This can be anywhere between 25-75%. You then pay a subsidised rent on the share you don’t own.
To complete a purchase, you’ll need a mortgage for the share you’re purchasing – we advise you to use a qualified financial advisor, a deposit which is usual set between 5-10% of your total mortgage amount.
Once you made your initial purchase, you have the options to ‘staircase’, which means buying additional shares. The more shares you purchase, the more the rent reduces. You can purchase shares until you own 100% of the property if you wish.
How do I know if I’m eligible?
We provide Shared Ownership to first time buyers who would otherwise be unable to afford their own home. However, in some circumstances, we will also consider applications from existing homeowners. If you are a homeowner you must have sold your home or be in the process of selling, before you can complete the purchase on a Shared Ownership home – Contact us for more info.
A household income cap has been set at £90,000 if you live or work in London and £80,000 if your based outside of London. You’ll find (where possible) household income requirements and specific eligibility criterias are detailed under each development on our website.
Plus, contrary to common belief you don’t have to be a key worker or in social housing to be eligible, nor do you need to be in a high-paying job.
To find out more about eligibility, click here.
Our expert team are on hand to assist with any enquiries you may have.
Are you looking for a stylish affordable home?
Southern Home Ownership is dedicated to providing stylish, high quality and affordable new homes for sale on a shared ownership basis.
If you're a first time buyer and interested in owning a shared ownership property in London and the South East then click on the link below to take a look at our latest developments.