Shared ownership schemes are intended to assist in the purchase of a property by sharing the cost. You share ownership of the property with a housing association, government department or local council. The advantage of a share ownership is that you can get onto the property ladder faster than under usual circumstances. It can also be a cheaper option than renting.
You will pay rent on the remaining share however, as well as the mortgage on your share of the property. Most shared ownership properties are leasehold which means you will also have to pay a small service charge fee. You will usually be able to buy further shares in the property at a later date should you choose to do so. However, this will have to be at the current value of the property at that time. So if the property value has risen, so will the share price. Needless to say, the more shares you purchase, the less your rent payment will be. You can also sell your share at any time in the future but the housing association has the right to find a buyer.
First however, you should contact the relevant housing association and make sure you are eligible for their shared ownership scheme. Usually they require that you have a household income of £60,000 or less.
Versus Law Solicitors deal with many shared ownership conveyancing and although they can be complex, we can help you purchase your property through this route effortlessly. Many housing associations and mortgage lenders have their own specific requirements, which is why you need to choose solicitors like us. We have the know-how and experience to make sure everything goes smoothly.
Call now on 0161 249 5087 to discuss your shared ownership purchase.