Property Buying Guide
What is involved with a shared ownership scheme?
Shared ownership is where you buy part of a property and rent the rest from a landlord, usually a housing association or housing trust. The properties have usually either been renovated or built by them. The schemes are usually funded by the government through the Departnemnt of Homes and Communities or local authorities.
Under a shared ownership scheme you buy a share of a home with a mortgage or savings, normally around 25% to 75%, and pay a subsidised rent on the part you don't own.
Those organisations registered with the Department of Homes and Communities, which funds the homes they build with money from central government, are known as registered social landlord (RSLs).
Some RSLs offer non-government-funded schemes, which run along the same lines, as do some house builders and building societies.
Who can apply?
Shared ownership is intended for people on lower incomes who cannot afford to buy a home of their own at current market prices. You should be a key worker, in housing need or have a household income of £60,000 or less.
To be eligible for some schemes (not all) you must be able to prove that you have a housing need and are unable to afford to buy a property in any other way. The landlords running the schemes will consider what money you have coming in and whether you have children, for example, which will affect your housing need.
There are relatively few properties available for shared ownership and the demand is high, so be prepared to wait for a property to become available.
To find out if you are eligible and what schemes are running in your area to speak to your local HomeBuy Agent.
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 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 l Benefits and pitfalls of shared ownership l Shared ownership schemes run by house-builders l The First Time Buyers Initiative/English Partnerships
Useful links
www.direct.gov.uk