Shared Ownership is an excellent scheme that helps you to make that first step onto the property ladder. Shared Ownership Week is an annual event dedicated to promoting the affordable housing scheme. With Shared Ownership Week running this year from the 23rd to the 29th of September, we thought we would take this opportunity to celebrate what Shared Ownership is and to debunk some myths surrounding the scheme.
What is shared Ownership?
Although there is still a great deal of confusion about what Shared Ownership actual is, the idea is actually pretty easy to understand. Shared Ownership combines renting and buying, allowing buyers to take their first steps onto the property ladder without needing to cover the full value of the property. You will purchase a share of between 25% and 75% of your new home’s value and will pay rent to your housing provider for the portion that you don’t own.
Do I have to share my home with someone else?
No. Despite this being a common misconception, you don’t have to share your home with anyone if you purchase through Shared Ownership. The term refers to the fact that you are sharing ownership of your property with your housing provider. No more sharing bathrooms with family or friends.
Am I eligible for a Shared Ownership home?
any people think that Shared Ownership is only available to first-time buyers and although these buyers will often benefit from the lower deposits, the scheme is available to a wide range of buyers. In order to be eligible, you need to be over 18 with a household income below £80,000 (or £90,000 for London properties). You also cannot simultaneously own any other properties.
Will I need to save for a large deposit?
No! Shared Ownership is designed to help people buy a property without needing a large deposit. When you purchase through Shared Ownership, you only need to pay a deposit on the share the you are purchasing. For example, if you are purchasing a 25% share of a property with a market value of £100,000, your share would be worth £25,000. For this share, if you were to put down a 5% deposit you would only need to save £1,250! If you were to purchase the same property without Shared Ownership, a 5% deposit would be much larger at £5,000.
Will I be able to buy more shares in the future?
Yes! You can purchase more shares of your Shared Ownership home all the way up to a 100% share and full ownership. This is a straightforward process known as staircasing and your housing provider will be able to assist you with this. The greater the share of your home that you own, the less rent you will have to pay. The great news is that there is no time limit to buy further shares of your property, so you will be able to make the decision as and when you can afford to do so!
What happens if I decide to sell my home?
If you are ready to move on, speak to your housing provider. They can help you sell your share to other people interested in Shared Ownership. Alternatively, if you have managed to staircase all the way to full ownership, you will be able to sell your property on the open market.
Are Shared Ownership homes good quality?
Shared Ownership homes are affordable yet high-quality. Many are new build homes, meaning they are designed for modern living and are often more energy efficient.
At Network Homes we currently have a range of high-quality homes available to purchase through Shared Ownership:
A+ in Hounslow
Now in its final phase, A+ offers a spacious collection of one and two-bedroom apartments in this popular west London neighbourhood. Each home benefits from its own private balcony, as well as access to a stunning communal garden and children’s play area. Prices at A+ currently start from £76,250 for a 25% share.
Evolution in Southall
This exciting development offer a fantastic choice of one, two and three-bedroom apartments. Each home at Evolution benefits from open-plan living areas and a private balcony, while buyers will also enjoy a communal courtyard garden. Prices at Evolution currently start from £75,000 for a 25% share of a one-bedroom apartment.
Action Works in Park Royal
At Acton Works buyers can choose from a range of one and two-bedroom apartments. This pet friendly development features tranquil communal spaces and rooftop gardens. There is plenty of cycle storage on site, and some apartments enjoy an allocated parking space. Prices at Acton Works currently start at £85,000 for a 25% share.
Union Square in Perivale
Coming soon to Perivale, the one, two and three-bedroom apartments at Union Square will benefit from close proximity to a range of shops, excellent schools and unbeatable transport links. Prices at Union Square will start from £82,500 for a 25% share of a one-bedroom home.
Coming in 2022 is ARC
Arc will offer a range of one and two-bedroom apartments and will form part of a vibrant new neighbourhood at Wembley Park. Located beside Wembley Stadium Station it offers excellent transport links to central London, rail and road networks. There is so much to offer in terms of lifestyle, it’s definitely one to watch out for.
Click here to discover more information on Shared Ownership Week.