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What is shared ownership housing?
Shared-ownership is a great way into home ownership and is the main affordable housing scheme. If you can't afford to buy outright, you can part buy part rent your home. You might buy a 25%, 50% or 75% share in your home. You pay a rent on the share that you don't buy normally set at an 'affordable' rate of, say, 2.75%. The bigger the share that you purchase, the less rent you have to pay. The shared ownership properties displayed at sharetobuy.com show you how the rent changes when you vary the size of the share (unless it's a resale in which case the share available is fixed). When you can afford to do so, you can buy more shares until you own your home outright in a process known as 'staircasing'. If you already own a shared ownership house or flat and are looking to staircase to a higher share, or even full ownership, contact the Share to buy mortgage team for more information on staircasing and remortgaging. There are even shared ownership schemes for disabled people and those over 55 years old. Indeed, you can find shared ownership retirement properties at sharetobuy.com in Surrey and Derbyshire. Please note: retirement shared ownership and other part buy part rent schemes for the over 55s may imply that the mortgage term is much shorter than the 'typical' first time buyer period of 25 years. If that is the case, the monthly estimate on our property site may not apply but you can contact the share to buy mortgage term for a more personalised illustration.
Housing Associations and shared ownership housing to buy or rent
The other share in a shared ownership property is usually owned by a 'housing association'. Alternatively, some shared ownership homes are provided by house builders directly on schemes called 'shared equity'. Share to buy are also familiar with shared equity mortgages. Most shared-ownership homes are found in the major conurbations, with big schemes in towns like Milton Keynes and Swindon, and the biggest concentration of shared ownership flats to buy is in London, but there are rural schemes available in some areas though you should be aware that rural schemes are more likely to have a cap on the maximum equity you can staircase to. You can find out more about shared-ownership properties by clicking here. This includes shared ownership in London and other parts of the country. We are expecting to add more part buy part rent homes across England in 2011.
The website, https://www.helptobuy.gov.uk/shared-ownership/ provides general information on shared ownership housing. In areas where a lot of shared ownership housing has been built and sold, (e.g. Milton Keynes) estate agents advertise 'second-hand' shared ownership homes known as 'resales'. Note that there is generally more mortgage choice when purchasing a shared ownership property on a second hand resale basis.
Who can buy shared ownership housing?
Shared ownership housing schemes are usually intended for people who cannot afford to buy a suitable home in any other way. However, the way in which this is defined will vary considerably with some shared ownership schemes merely being restricted to first time buyers and others to applicants living within a certain borough. Priority will often be given to people on local authority or housing association waiting lists.
When a new housing scheme is developed that includes shared-ownership homes for sale; housing associations will usually advertise shared ownership properties for sale. If you are interested in shared ownership housing apply to the local authority or a housing association that offers shared ownership housing in your area as soon as possible.
You don't have to find a new housing development to be able to buy a shared ownership property. When shared owners want to move home, their property will either be offered to the housing association to find a buyer, or will be advertised in the local estate agents (i.e. as a second hand 'resale' property as described above).
Who does the repairs on shared ownership properties?
The shared ownership lease between you and the housing association will set out your rights and responsibilities as a shared owner. Although you have not bought the property outright, you will generally have the normal rights and responsibilities of a full owner-occupier. In particular, you will generally be responsible for the cost of repair and maintenance to your home, paid through a monthly fee known as a 'service charge'. Take care when researching shared ownership properties for sale to ask how much the service charge is, as well as the rent.
For additional details please call:
T S Gill
Sunrise Capital Consultants
0208 518 1124