Could shared ownership be the answer Could shared ownership be the answer

Could shared ownership be the answer

Published in New Homes on 3 August 2021 by our Marketing Team

 
This easy guide to shared ownership will help you decide if it’s the right option for you.

 
What is shared ownership?
 
Shared ownership schemes are run by councils, local housing associations and property developers.
 
If you buy with a shared ownership, you will own a percentage of your property for the amount you can afford, whilst paying rent on the remaining amount.
 
This gives you the opportunity to get on the ladder as an owner-occupier, benefiting from long-term stability but without overstretching yourself.
 
Purchasers are then able to buy more and more shares, in most cases, until they’ve reached 100% and are no longer required to pay any rent, just their mortgage.
 
What is a shared ownership mortgage?
 
There are affordable mortgage products for those wanting to buy into shared ownership, as the number of lenders accommodating this route to homeownership has increased.
 
You will also find that deposits are generally lower, as they will be based on the value of the share you’re buying. 
 
How is stamp duty applied to shared ownership?
 
Buyers can make a one-off payment when buying the property so that stamp duty won’t be added when buying further shares.
 
Alternatively, you can pay stamp duty tax in stages, initially on the value you own and then with further payments once you own 80% of the property.
 
Can I sell my shared ownership home?
 
You can sell your shares at any point, only with sole autonomy as the seller once you control the full 100% of the shares.
  
For more information on how to buy your first home, contact our team today.
 
 
 

It’s important to note that rules for shared ownership may vary across the UK.
 

This article was originally published by BriefYourMarket and is reproduced here with their permission.

For more company news and insights from Pygott & Crone, click here

Members of the Relocation Agent Network

Part of a network of agents

We work with other trusted estate agents across the nation

Latest news

Help us make a difference to those in need this Christmas
Campaigns | 21 November 2022

Help us make a difference to those in need this Christmas

Donations for our local food banks are being gratefully received at your local Pygott & Crone branch

Is home staging worth it?
Magazine | 1 November 2022

Is home staging worth it?

Home staging is a specialised skill which involves creating the perfect atmosphere in your home using furniture and accessories, plants and lighting, to garner buyer interest for your property and sell it faster, for the best price.

Winterproof your home with these tips
Magazine | 1 November 2022

Winterproof your home with these tips

As autumn leaves us and dark evenings approach, now is the best time to start preparing your home for the cold months ahead.

One in three properties receive an offer one hour after viewing
Magazine | 1 November 2022

One in three properties receive an offer one hour after viewing

The housing market once again exceeds expectations after a poor reception from the chancellor’s mini-budget and regular talk of a possible slowdown, as current research suggests that in 2022, almost a third (31%) of properties are now receiving offers within an hour, compared to a mere 7% in 2018.

Chat live

Chat live with a member of staff

Please provide your name and email address to continue.

Cookies

We use some essential cookies to make our website work; and we use some other cookies to help us improve our website without identifying you. You can accept all cookies or change your settings below.

For an explanation of cookies and how we use them, see our cookie policy here (opens in new tab). Below you can choose to enable non-essential cookies.

These are anonymous and help us understand how our website is used.