Shared Ownership – The home buying scheme you never knew you needed
This week we have been celebrating all things Shared Ownership and its many benefits to those looking to get onto the property ladder. Right now, we’re living through a turbulent time of rising costs of living, with soaring gas and electricity prices and inflated shopping bills. It also comes as no surprise that it’s becoming even more difficult for those wanting to buy a home. If you’re wanting to take that step towards becoming a homeowner, we want to make sure you can do so in a way that’s both realistic and enjoyable to you, as let’s face it, owning a home is a huge achievement!
Previously, those struggling to buy a home on the open market had alternative routes to home ownership such as Shared Ownership and the Government’s Help to Buy scheme. The latter has been incredibly popular with first-time buyers, but unfortunately the scheme runs out on the 31st of March 2023. This means that if you haven’t reserved a new home with Help to Buy by the end of this month, you can no longer use the scheme as you must legally complete your purchase by March 2023.
Although Help to Buy is almost over, fear not, Shared Ownership is still available. The best bit is, it’s a much more affordable option and isn’t just for first-time buyers, making home ownership even more accessible!
So, how does it work?
With Shared Ownership, you own however much of your home you can afford to buy, and your mortgage is based on that share, so it will be significantly lower than a traditional mortgage. You will need to put down a minimum 5% deposit, but it’s just 5% of the share that you are buying, not the total value of the home. It’s simple, you buy what you can afford, and pay rent on the rest! Better still, your monthly payments will generally be lower than if you bought with an outright mortgage and depending on your circumstances, you may also be able to buy your share with cash and no mortgage!
But don’t get the wrong idea… just because you’re paying rent doesn’t mean it’s not your home. It’s completely up to you how you decorate it so make it your own! The only occasion that you will need permission to make improvements is if you want to make structural changes such as building an extension or knocking through a wall.
Over time, you can gradually own more and more of your home through a process called ‘staircasing’. You can choose to buy more shares in your home, all the way up to 100% ownership (for most homes, but make sure you check with us first). During this process, your mortgage will increase whilst your rent will decrease! It’s up to you how much of your home you own, and you don’t have to staircase if you don’t want to.
Shared Ownership is an excellent option for those who want the security of owning their own home and are happy to take their time - perfect for first-time buyers! In reality, the current market of private rentals and extremely high mortgage deposits can make it exceptionally difficult to save what’s needed to purchase a home in the traditional way. So, if you’re wanting a quicker and easier way to get on the property ladder, Shared Ownership could be the option you never knew you needed!
Think it could be the option for you?
We have Shared Ownership homes available in Hartlepool, Bedale, Newton Aycliffe, Hemlington, Boroughbridge, Darlington, Eaglescliffe, Middlesbrough and many more locations! Take a look at our homes (one of which could soon be yours!) and don’t forget you can contact us if you have any further questions on the scheme.