Property Buying Guide
Shared ownership schemes run by house builders
Some house builders are now offering shared equity schemes. If they are promoting shared ownership it is usually on behalf of their local Housing Association who will be the co-owner of the property, not the builder.They might also promote these schemes through normal and on-line estate agents such as rightmove.co.uk See our first property page.
Unlike a shared ownership scheme run by a Housing Association, the house builder does not necessarily charge interest on the deferred amount and there is no rent. If you only own 90% of the property, for example, and you sell, you will only have to pay the original value of the remaining 10% back to the house builder.
House builders may offer mortgages at preferential rates through links with certain mortgage lenders. However, it is always wise to make your own enquiries with other lenders to ensure you are being offered competitive rates.
There will be a contract between you and the co-owner of the property. Make sure you understand it and there should be no hidden charges, tie-ins or penalties. Consult a property solicitor to be sure.
More about shared ownership:
What is New Build HomeBuy and how does it work? l Who is eligible and what are the selection criteria? l Special features and how to apply l What is involved with shared ownership and who can apply? l How do I increase my share and how much do properties cost? l What rights and responsibilities do I have? l Are there restrictions on resale? l Can I buy with someone? And what about finance and legal issues? l Where do I start and what happens next? l What questions should I ask? l Will shared ownership really enable more first time buyers to buy a home? l Shared Ownership Mortgage basics Benefits and pitfalls of shared ownership l The First Time Buyers Initiative/English Partnerships
Useful links
www.direct.gov.uk