Shared Ownership scheme – what you need to know
Shared Ownership is a government-backed scheme that helps people who cannot afford to buy a home outright. It allows one to buy a share of a leasehold property, typically between 10% to 75% and pay rent on the remaining share.
This scheme is considered as an affordable option to buy a home. It’s worth bearing in mind, though, that the conveyancing and legal work required when using such a scheme can be more complicated, and your rights will need to be clarified. Quality Solicitors provide legal advice and support throughout the process.
Types of properties you can buy on shared ownership:
- All properties should be leasehold properties only.
- You can purchase a newly built home or an existing one.
- People with some special conditions can purchase special provisions based on their disabilities, like a ground floor.
Eligibility Criteria:
- Income limits: Your household income must be below £80,000 (£90,000 in London).
- First-Time Buyers: First-time buyers or those who used to have a home before but cannot afford it now can be eligible for shared ownership.
- Existing shared property owners can move to a new place.
Other costs to consider:
- Monthly costs: this includes your mortgage or rent.
- Services charges: This covers maintenance of communal areas and insurance.
Steps to Apply:
- Eligibility Check: The first and most important step is to check eligibility and confirm that you meet the income and other criteria.
- Find a property: Housing associations and local councils can assist in finding a property.
- Apply: Complete the Application Request
- Financial Assessment: Undergo a financial assessment to ensure affordability.