Could shared ownership be the answer
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.
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