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Shared Ownership

What is Shared Ownership?
Shared Ownership schemes were devised by the Government to assist key workers and individuals who are in need of assistance with housing. The term Shared Ownership means owning part of your property in conjunction with a co-owner; which is typically a Housing Association. You take out a mortgage for the part that you own from as little as 25% of the property’s value, you then pay rent to the Housing Association for the remaining share of the property that you do not own. The bigger the share that you purchase, the less rent you have to pay. When you can afford to do so, you can buy more shares (known as staircasing) until you own your home outright. Many Housing Associations require that you to have a Shared Ownership mortgage agreed in principle so that they can offer you a property.

Shared Ownership Mortgages
There are only a limited number of lenders in the mortgage market who will lend for this type of mortgage arrangement – some lending the full 100% of the share. Our Financial Advisors have access to all the mortgage lenders in the Shared Ownership market, including those who will consider clients with adverse credit, and will be happy to help with these purchases. Shared Ownership mortgage lenders will need to gauge that you are able to afford both the mortgage payment and the rental payment when calculating your affordability.

The difference between Shared Equity and Shared Ownership
The differences between shared equity and shared ownership can become quite complex, but generally, with shared equity you purchase 100% of a property but with an equity share loan making up the difference between the mortgage and purchase price. In contrast, shared ownership schemes enable the potential purchaser to own a specific share of the property (with the remaining share normally owned by a housing association, to which the new owner will pay a monthly rent), and you can only achieve 100% ownership by 'staircasing' up from shares of 25%+ to full ownership. With shared equity schemes there was initially a requirement to clear the equity loan within 5 to 10 years periods, although; some of the more recent schemes allow you up to 25 years, depending on the specific schemes criteria.

Our Financial Advisor’s will be able to advise you on a shared ownership mortgage and which one would be right for you.

For further information on Shared Ownership Mortgages and Shared Ownership Properties:
Call our local consultants today, they will be happy to advise you through each step of the purchase process and provide information all the property options available in your area.