“Shared ownership can be a great way to make that first step on to the property ladder but it comes with its own unique set of guidelines and rules which we can help buyers understand.”
Ian Ward CeMAP CeRER
Director
Shared ownership mortgages are part of a government scheme that allows you to part buy and part rent your home. You can take out a mortgage for the share you own (usually between 25% and 75%), while paying rent on the remainder to a housing association.
Shared ownership can be a way to get on the property ladder if you are a first-time buyer or part of a lower income household. You might look into a shared ownership mortgage if you don’t have a large enough deposit to put down on a mainstream residential mortgage.
There will be a fee for mortgage advice. The precise amount will depend upon your circumstances but we estimate that it will be £595.00 To understand the features and risks ask for a personalised illustration.
You can apply for a shared ownership mortgage if you are a first-time buyer or if you have previously owned a home. You also need to have a household income of less than £80,000 if you live outside of London, and less than £90,000 if you live inside London. You must plan to live in the property and not rent any of it out and also have the right to permanently reside in the UK. At Willson Grange Mortgages we can explain all the rules around shared ownership mortgages and help assess whether you can apply.
You may have heard of the term ‘staircasing’ in relation to shared ownership mortgages. This is when you start off owning a certain share of your property and increase that share over time step by step. The benefit of shared ownership is that it helps you make that very first step onto the property ladder. You might be at a point in your life when you can only afford to own 25% of the property but, over time, if your circumstances change, you have the opportunity to buy more of the property from the housing association.
It is important to understand than your property price may increase over time. If you are considering buying additional shares of your property in the future, it may cost you more to do so. Conversely however if the property value goes down, you would pay less. Also, each time you wish to buy more of the property, you will need to pay to have it valued. Another point to consider when buying through shared ownership is the fact you may want to sell your home in the future. There are specific rules around this that we at Willson Grange Mortgages can explore with you.
If you buy a shared ownership property, you’ll need a shared ownership mortgage for the proportion of the property you buy. There are different providers of shared ownership mortgages and we can help you find the best one based on your individual needs.
At Willson Grange Mortgages we can help you explore the option of shared ownership Help to Buy. As with all Help to Buy schemes there are advantages and disadvantages of shared ownership and we recommend taking advice from a mortgage adviser to make sure you are fully aware of the agreement and for peace of mind that you have secured the best mortgage for your needs. To get in touch with a member of our team simply fill out the form on our website, call us or send us an email and we will be happy to help.
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