It’s shared ownership week and we’re celebrating by busting some of the common myths surrounding this great route to home ownership…
You have to share your home with someone else!
Let’s get this one out the way first! You definitely don’t have to share your home with someone else – unless you want to of course. Shared Ownership means you buy a share of your home and pay rent on the rest. Rent is usually charged at ‘affordable rent’ levels so it’s cheaper than the open market.
It’s only for people on very low incomes
Shared Ownership is designed for people who can’t afford to buy a home on the open market. It’s aimed at low to mid income earners. So if your household income is less than £80,000 (or £90,000 in London) then you could be eligible. There are some other general criteria you need to meet but as long as you’re a first-time buyer and can cover the costs of buying a home, you could qualify.
It isn’t real home ownership
A common misconception of many home buyers is that Shared Ownership isn’t a real form of home ownership. True, you may not initially own 100% of your property but Shared Ownership is a real way for many people to get a foot on the property ladder. When the time is right you can increase your equity by buying more shares in your home – this is called ‘staircasing’ - which could eventually lead you to owning your home outright. Which brings us on to our next myth…
Shared ownership homes are usually in undesirable areasFar from the truth! Many Shared Ownership properties are available in highly sought-after areas and offer great communities to live in. Network Homes for example has Shared Ownership homes in the heart of Brixton, Lime House, Ealing and Harrow. And it’s not just confined to London. We offer shared ownership homes in Hertfordshire for those wanting the best of town and country and easy commutes to the City.