Shared Ownership Scheme, How Does It Work?
Released On 28th Jan 2022
What did you imagine growing up on where you'd live?
I personally used to sit there circling the Argos Catalogue on my future furniture! (Thank God I grew out of my bamboo obsession!)
My youngest son used to tell me regularly that he would live with me and move his future wife in and we could all be happy together. He quickly outgrew that idea!
But I think at some point, growing up, we imagine moving out and gaining our freedom and as we get older, and freedom is beginning in so many other aspects of our lives, moving out becomes not just a wish but almost a need.
And yet, we have a generation who struggle to get on the property ladder and cannot afford to buy. They get stuck between moving out and renting thereby stopping any chance of saving for a deposit or relying on mum and dad to let them live rent free so they can save and that could be years away leaving them in limbo staying in their old childhood bedroom and letting their mum and dad know where they are!
In fact, the average age of a first time buyer looking to get their own home is 32 according to Ticfinance. And with the average home in the UK being £268k (according to ons.gov.uk) it’s no wonder it’s so hard to get on the property ladder.
But there is hope on the horizon in the form of the shared ownership scheme.
The shared ownership scheme is an affordable way to acquire your first home and get on the property ladder. You pay for it by obtaining a mortgage in the normal way. With this money together with your deposit, you buy a share of the property. The Housing Association own the rest and you pay monthly rent to them for the remaining share and monthly mortgage payments.
Shared ownership is a great way to be able to move into a brand new home at up to a 75% discounted price of the full market value. It’s also important to know that the entire house is yours. You do not need to share it with anyone else, unless you want to!
There are numerous Housing Associations working with the shared ownership scheme providing new build properties and it’s simple to register. There’s a couple of circumstances and different rules that you need to have first though.
You can apply for shared ownership if your household income does not exceed £80,000 per annum and you currently do not own a home, or you can’t afford to buy one at the current time. Of course, once you have found your dream home there are many seemingly complicated things to do. You have to arrange finance and deal with Estate Agents and Solicitors, but some things are easier. By buying a shared ownership property you avoid the dreaded “chain” meaning you aren’t beholden to anyone else selling and moving their home.
But you can make it all easier with the right solicitor. AmicusLaw have a team of experts who can help and guide you through this.
Plus, they have a fixed fee basis so you can easily budget the costs involved and be reassured the solicitors bill won’t be rising! They deal with Shared Ownership Leases every day, in fact, a lot of Housing Associations recommend them and because of this, they can keep their rates competitive.
When it comes to shared ownership there are many different levels. Speak to the AmicusLaw expert team to find out about getting on to the property ladder with a shared ownership property.
Find out more about shared ownership here and get yourself on the property ladder!
