Shared Ownership schemes (sometimes referred to as Part Buy / Part Rent or Newbuild Homebuy) are provided through housing associations and allow you to buy a share of between 25% - 75% of your new home.
A subsidised rent is paid on the remaining share. Shared ownership is available on select new build developments and there is also an active re-sale market created by people moving on.
HOW IT WORKS
The rents will vary but generally don’t exceed 3.00% of the value of the unbought share. For example on a property valued at £200,000 bought on a 50% shared ownership basis your rent will be £3,000 per annum paid monthly at £250.00.
In this example you would fund the purchase of the share you own by combination of savings and a mortgage. 95% mortgages are generally available through specialist mortgage advisers such as Clark Marshall but always check before applying.
INCREASING YOUR SHARE
A process termed “staircasing” is available which allows you to buy further shares in the property until 100% ownership is achieved.
Once this milestone is achieved the property is owned on the same basis as an outright sale property and you are no longer a shared owner.
Staircasing, isn’t a pre-requisite and the original share can be retained throughout the shared owner’s lifetime if preferred.
If you have found a property and require a financial assessment please complete the Shared Ownership Enquiry form.
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