A Guide To Shared Ownership And Stepping On To The Property Ladder
Shared Ownership is a part-buy, part-rent government-backed scheme which usually allows first-time buyers to purchase a 35–75% share of a new home and pay rent on the remainder.
It requires a small deposit of around 5% but is perfect for when you’ve found a good home but can’t quite afford to buy yet.
For example, you could pay £100,000 towards a house worth £200,000 and the organization you are buying it from will pay the other half and charge you rent on the remaining.
You can then staircase your share in the property and slowly buy the house outright.
In order to apply you need to be a first-time buyer, in permanent employment, live or work locally, or have family connections to the area you want to buy in. You must also have a total household income of up to £80,000.
As well as a 5% deposit, you’ll need to pay for a reservation fee, mortgage valuation or survey, legal fees and stamp duty. You will also need to factor in the costs of moving home, for example hiring a removal firm.
If you would like more information on the scheme from the property experts at Park & Bailey then please contact us.