Shared Ownership is an alternative way to secure a new build home
Shared Ownership is a home buying scheme that allows you to purchase a share of a property and pay rent on the rest.
What is Shared Ownership?
Have you considered shared ownership as a way to buy a new build home? If you’re looking to find out more about the scheme, this guide tells you everything you need to know.
Shared Ownership is a great option for first-time buyers looking to buy a new build home, without needing to pay a hefty deposit. With the shared ownership scheme, you can purchase 25-75% of a home’s market value and pay a reduced rent on the remaining share (calculated at 2.75% per annum).
You’ll need a minimum 5% deposit for the share you’re buying. Over time, you can increase your share of the home through “staircasing,” and once you own 100%, the property moves from leasehold to freehold.
It is worth noting that even if you have a mortgage agreement in principle, you’ll still need to submit a full application for approval.
Just like with a regular home purchase, you may need a mortgage to buy your share. Not all lenders offer this type of mortgage, so it’s important to find a suitable provider.
Deposit rates may vary depending on the lender, but a 5% minimum deposit is standard. You can use our Mortgage Calculator to estimate how much you can afford and what your monthly payments might look like.
Eligibility criteria for the shared ownership scheme varies by provider and the property, but key requirements include:
• Your household yearly income must be below £80,000
• You currently do not own a home
• You must be at least 18 years of age
• You must have proof you’re not in mortgage or rental arrears
• You have a good credit history
• You’re not able to purchase a home suitable for your needs on the open market
4. Other considerations for first time buyers
Even with shared ownership, there are additional costs to budget for, such as:
• Stamp duty and taxes
• Solicitor and legal fees
• Moving and furnishing expenses
If you’re interested in buying one of our new build homes, you can take advantage of shared ownership through our partnerships with Sage Homes and Heylo. Their Home Stepper and Home Reach schemes offer part-buy, part-rent options, making it easier to move into your first home.
If you have any questions about shared ownership or want to learn more about our current offers, get in touch. We’ll help you explore your options and make the buying process as straightforward as possible.