Shared Ownership – offering you a step on to the housing ladder!
Discover the advantages of Shared Ownership and move one step closer to purchasing a home of your own
How shared ownership works
With a Shared Ownership, the buyer takes out a mortgage for a share of the property – usually between 25 and 75 per cent – then pays rent on the rest. The rent should be less than the rate charged on the open market – usually 2.75 per cent of the property value per annum. The buyer may be able to buy some or all of the remaining shares in the property at a later date using a process called ‘staircasing’.
Speaking to the The Telegraph, Pete Ball, personal finance CEO at property lender, Together, said there was a number of advantages to shared ownership. “ Shared Ownership can get people on the housing ladder quicker, and allow them to live in a better property, in a more popular area than they might otherwise be able to afford.
Shared ownership is usually used by first-time buyers, but isn’t limited to them. In general, people need to show that they would not be able to afford to buy a home suitable for their housing needs on the open market.”
Click here to read the full Telegraph article.