So is shared ownership only for first time buyers? The answer is no, not strictly. It is a great option for first time buyers though.
There are many reasons why other buyers may want to choose shared ownership could be;
- They want to downsize – Maybe a family has become smaller due to children growing up and moving out. This is a great option for those wanting to downsize as they will not need a huge deposit and may not want to be paying off a mortgage.
- There has been a relationship or family breakdown- Shared Ownership again would be beneficial as it would allow someone to be able to move out even if they have not got a lot of money saved.
- There is a home in a desirable area – There is the possibility that you could live in a desirable area for the fraction of the cost.
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There are shared ownership first time buyer homes, but they are also available based on the criteria above. Start your search for a shared ownership houses today.
First time buyer home purchases 2022
According to money.co.uk 0ver 370,000 first-time buyers purchased a home in the UK in 2022, a tiny decrease from 2021 when they reached their highest level in almost 15 years. This 35% rise is assumed to be due to the coronavirus epidemic.
Eligibility for shared ownership
You could buy a home through Shared Ownership in England if:
- You have a household income of less than £80,000 (outside London) or £90,000 (inside London)
and - You are a first-time buyer, you used to own a home but can’t afford to buy one now or own an existing shared ownership property but are looking to move.
Shared ownership is mainly targeted and marketed at first time buyers, but they are not the only group who can buy shared ownership properties. Find out more about shared ownership eligibility.
What are the costs of shared ownership?
Shared Ownership costs are usually lower than other housing tenures, so it is great for first time buyers.
Shared ownership can be seen as an ideal way for first time buyers to get on the property ladder for many reasons.
Many first time buyers see shared ownership as a great option to start owning their own home. Even getting a deposit together is easier as the shared ownership mortgage is only for between 25% and 75% of the property. The rest, is rent which is paid to the housing association that owns the development.
You only need a 10% deposit of the share you are buying. For example if a 40% share of a property is £40,000, you would only need a £4,000 deposit. This makes shared ownership very affordable, especially for first time buyers.
You will also need some cash for shared ownership solicitors fees and moving costs but still we hope that gives you an idea of how accessible owning your home can be.
Shared ownership mortgages
If you buy a shared ownership property, you’ll need a shared ownership mortgage for the share of the property you buy. You’ll typically need a 5% deposit, rather than 10%.
Not all lenders offer shared ownership mortgages. The providers that do include Nationwide, Barclays, Leeds Building Society and Halifax as well as many others. You can use the form on our site to compare shared ownership mortgages
Why should first time buyers choose shared ownership?
As we have previously stated, shared ownership allows people to get a foot on the property ladder easier. You can save less for a deposit and still own you % of your house. If you have found a house you love but if it was on the open market wouldn’t be able to afford, it can give you the chance to ‘staircase‘ up to 100%. This would be beneficial to those progressing in their career but are not quite at the level they would want.
By owning a share in a property, this gives you the opportunity to live in a house for a lot lower cost and could potentially be your forever home. Whatever you decide, it is best to consider both the pros and cons of shared ownership before you commit.
Shared Ownership: Key Topics
- Are shared ownership houses leasehold or freehold?
- What questions should you ask when viewing a shared ownership property?
- Is shared ownership right for you?
- What is the downside to shared ownership houses?
- What does shared ownership service charge cover?
- What are solicitors fees for selling shared ownership property?
- Buying or selling shared ownership what are the costs?
- Shared ownership vs renting what will you do?
- How does shared ownership work when you sell?
- How does shared ownership staircasing work?
Find part buy part rent properties available now
