What is Shared Ownership?
Shared Ownership is a method of buying a high-quality home in (affordable) stages. Purchasers are able to buy as much of the property as they can afford, often ranging from 25%-75% initially, paying a low rent cost on the remaining unpurchased ‘share’ of the home. In addition, your mortgage deposit is based on the share you buy (not the full market value), meaning this could be as low as 5% or 10%, making a Shared Ownership home even more affordable.
You can increase your ‘share’ of the property and purchase more of your home at any time- this is called “Staircasing”. When you increase your share of the property, you will also decrease the amount of rent you pay each month. When you want to staircase, simply contact our team who will be able to help you through the process.
What are the benefits of Shared Ownership?
- A lower deposit is required: As you are buying only a share of the full market value, your deposit will be based on that share (meaning you don’t have to save for as long!)
- Make it your own: Unlike rented properties you are an owner-occupier and can redecorate or make improvements to increase value.
- You benefit from any value increase: When you sell your home you will get the current market value for the share you own, so you will benefit from any increase in the property’s value.
Am I eligible for Shared Ownership?
Eligibility varies by development, property size and whether there are any specific criteria imposed by the Local Authority, but here at City Park West it’s just some general, overarching criteria that you must meet to qualify for a Shared Ownership scheme:
- Household income: For developments outside of London, this is a combined household income of less than £80,000. We will also illustrate a minimum household income for each home as a guidance to ensure the home you want to buy is affordable for you, but a free financial assessment will help both you and us understand this.
- Housing situation: Usually you will need to be a first-time buyer, but Shared Ownership can be for anyone who can’t afford a suitable home to meet their needs. You cannot already own a home and buy with Shared Ownership (unless you are selling that home as a result of a change in circumstances and cannot afford to buy a suitable home).
And that’s often it! Other than ensuring the new home is affordable for you (which is checked via a free independent financial assessment), Shared Ownership really can help you onto the property ladder. Whether you’re a nurse or a customer service advisor, a teacher or work in HR, thousands of people each year are realising their dreams of owning their own home thanks to Shared Ownership.