Daunting deposits, fiendish solicitors’ fees, monster mortgage payments - let’s face it, buying your first home can be pretty scary.
Ever considered Shared Ownership? It’s a cross between renting and owning and is one of the most affordable homeownership options out there.
It allows you to buy a part share in your property and pay the rest in rent at a reduced rate.
Typically, you buy between 25 to 75 percent of a share in a home. And the best part? You only pay a deposit on your share of the property.
That can mean a lower deposit and lower monthly payments than if you paid outright. Sometimes, it can work out cheaper than renting too. But it’s worth remembering you will still have to pay the usual costs associated with home ownership – stamp duty and conveyancing fees for example.
There are also some requirements you need to meet, so it's best to do your research. For example, you need a household income of less than £80,000, unless you live in London in which case it’s £90,000. Check out the Share to Buy website for more eligibility criteria.
Shared Ownership properties are sold by housing associations like us, Network Homes. We believe that good homes make everything possible so we aim to make the journey to buying your new home as smooth as possible. Our team will manage the entire process, from viewing your home, to following the legal steps and moving in.
The great thing about Shared Ownership is that you can staircase. Nothing to do with adding a new floor to your house! It means that when you can afford to, you can buy a greater share of your home from the housing association. Great if you are able to save but bear in mind the cost of increasing your share will depend on the market value of the property at the time.
So you meet the criteria and you’ve got enough for a deposit - time to get that warehouse conversion you’ve had your eye on! Not so fast. Shared Ownership homes tend to be purpose built so you’re likely to be buying a new build flat.
Buying your first home is a huge commitment, but it needn’t be scary. If you can’t afford to buy a home outright, Shared Ownership can give you that extra piece of mind and a foot on the ladder on your journey to becoming a home owner.
By Hellyn Fairbrother, Acting Head of Sales & Marketing at Network Homes