Older person’s shared ownership is a product offering targeting includes those who are looking to move in to smaller properties. There has been a lot of talk about the possibility of incentivising older people to downsize. There is a perceived lack of retirement housing options available, however older person’s shared ownership could be an attractive proposition.
Older person’s shared ownership for those Over 55
Typically you need to be over 55 years of age to apply for these retirement housing schemes. However, there may be some properties that are available below this age limit. It is best to check with the housing association provider who is advertising these homes.
It is important to understand how this older persons shared ownership differs from the other retirement housing options available. This is a part buy part rent model and you can only own up to 75% of the property. The other options are to rent or buy a retirement property.
You can only own up to 75% of a shared ownership property
If you are looking to free up cash and release some equity when downsizing then older people’s shared ownership could be an option for you. You can buy a minimum of 25% share of a property up to a maximum of 75%. If you buy the maximum, you do not pay any rent on the remaining 25% share. This is an important difference to other shared ownership schemes.
You will find there are more housing associations who are venturing in to this marketplace offering older person’s shared ownership. However, it is important to understand that you will need to check with the housing providers to see if you are eligible for such schemes. You will also be able to find out more about older persons shared ownership from your Help to Buy Agent.
Part buy part rent retirement housing an attractive option
Whilst this part buy part rent retirement housing could be an attractive option, it is important to point out that you will still need to be aware of other costs associated with moving into an older persons shared ownership property. These will include shared ownership solicitors fees, surveyor valuation fees as well as removals costs.
