Mon 31 Oct 2016
Getting onto the property ladder is no easy feat however there are several government schemes which can help with the purchase of your new home.
• a mortgage guarantee (UK wide)
• a home through shared ownership (UK wide)
In this article, we focus on shared ownership, we look at what it is and who is eligible to buy a property in this way.
What is shared ownership?
You can get a shared ownership property through a housing association. You buy a share of your home (between 25% and 75%) and pay rent on the rest.
You can buy a home through shared ownership if your household earns £80,000 a year or less (or £90,000 a year or less in London) and any of the following apply:
• you’re a first-time buyer
• you used to own a home, but can’t afford to buy one now
• you’re an existing shared owner
If you’re aged 55 or over you can buy up to 75% of your home through the Older People’s Shared Ownership (OPSO) scheme. Once you own 75% you won’t pay rent on the rest.
You can apply for a scheme called home ownership for people with a long-term disability (HOLD) if other Help to Buy scheme properties don’t meet your needs, eg you need a ground-floor property. With this scheme you can buy up to 25% of your home.
If you’re disabled you can also apply for the general shared ownership scheme and own up to 75% of your home.
Buying more shares
You can buy more of your home after you become the owner. This is known as ‘staircasing’.
The cost of your new share will depend on how much your home is worth when you want to buy the share.
It will cost:
• more than your first share if property prices in your area have gone up
• less than your first share if property prices in your area have gone down
The housing association will get your property valued and let you know the cost of your new share. You’ll have to pay the valuer’s fee.
Selling your home
If you own a share of your home, the housing association has the right to buy it first. This is known as ‘first refusal’. The housing association also has the right to find a buyer for your home.
If you own 100% of your home, you can sell it yourself.
How to apply for shared ownership
To buy a home through a shared ownership scheme contact the Help to Buy agent in the area where you want to live.
SHARED OWNERSHIP PROPERTY FOR SALE
A modern second floor two bedroom apartment close to Loughborough town centre, ideal for a first time buyer. The apartment is available on a 50% shared ownership basis, however it can be purchased at 100% ownership if desired (charges may apply).
Contact John German Estate Agents in Loughborough to arrange a viewing, call 01509 239121 or email firstname.lastname@example.org
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