By creating affordable, high-quality homes and offering a range of buying options, Places for People has been supporting People onto the housing ladder for more than 50 years. Their brand-new Shared Ownership homes in particular – located in attractive Communities across the country – can be a great option for those who might struggle to buy a property outright.
However, if you’re unfamiliar with the Shared Ownership buying process you may want to find out more about the different stages and what happens throughout.
How to check if you’re eligible for Shared Ownership
Firstly, in order to be considered eligible for the Shared Ownership scheme, you’ll need to have a household income of £80,000 a year or less (£90,000 or less per year in London) and not be able to afford the full deposit and mortgage repayments for a home that meets your needs.
Providing you meet the full Shared Ownership eligibility requirements, Places for People can put you in touch with one of their independent financial advisors, all of whom are Shared Ownership specialists.
How to know if you can afford a Shared Ownership property
In order to qualify for a property through the scheme, you’ll need to undertake an affordability assessment. This is carried out by the independent financial advisor and approved by the Homes and Communities Agency (HCA), to guide you on the right share level to purchase based on your current earnings and income.
You’ll also need to provide a deposit, usually between 5% and 10% of the share in the home that you are buying. Other costs include conveyancing, legal fees, Stamp Duty (when applicable), moving costs, and potentially mortgage broker fees.
The Shared Ownership application process
Once you have found a Shared Ownership property or development that you’re interested in, you should reach out to the developer to start the application process.
If you decide to buy new with Places for People, you can contact our sales advisors directly, who will be happy to answer any questions you may have, or book you in for an appointment to discuss next steps.
Once some checks have been done to make sure you are eligible and can afford the home, you can then officially apply and reserve your new home.
Getting a mortgage for Shared Ownership
Unless you’re a cash buyer, you’ll need to take out a mortgage to pay for the shares in the home that you are buying, minus your deposit.
As you’re only purchasing part of the property, this type of mortgage is different to standard mortgages. But just like any mortgage, you’ll need to be able to show that you can afford the monthly repayments and you will need to have a good credit history.
Why not read more about How to get a mortgage for Shared Ownership?
The Shared Ownership conveyancing process
Alongside getting a mortgage, the legal work involved in buying a home needs to be done. You’ll need a conveyancing solicitor to do this on your behalf.
With Shared Ownership, this involves the legal side of transferring ownership of the home and includes checks being run on both the property purchase and the lease for the portion of the property that you are renting.
Once contracts have been exchanged you can look forward to a completion day being agreed – the day when the mortgage lender sends the funds across, and you get the keys to your new home!
Places for People’s Shared Ownership Conveyancing Guide takes you through this process step by step.
How long does the Shared Ownership process take?
The length of time it takes to buy a Shared Ownership property can vary, however, it’s common for the whole process, from acceptance of your application for a property to getting the keys, to take somewhere around one to two months (if the property is ready).
If there’s still building work that needs to be finished on a new-build property, the timeline can be longer, but the developer should be able to advise you on this before you start the Shared Ownership buying process.
Step onto the property ladder today
Hopefully, you now have a much better understanding of the Shared Ownership process. Although when you buy with Places for People, you can be confident that help will always be at hand from our expert team.