Shared ownership is effectively a middle ground between owning a property and renting it. This scheme can be particularly useful if you can’t borrow enough to purchase a property in the area you would like to live in. They can be a good way of getting your foot on the property ladder.
The scheme is generally offered on new build properties built by a housing association or private developer, but they can also be offered on second hand properties.
You purchase a share in the property –usually between 25%-75% and will pay rent to a housing association on the other part that you don’t own.
Property price of £200,000
| Percentage Share | Your Share £ | Landlord’s Share £ | Monthly Rent |
|---|---|---|---|
| 25% | £50,000 | £150,000 | £375 |
| 50% | £100,000 | £100,000 | £250 |
| 75% | £150,000 | £50,000 | £125 |
As you can see from the example above, the greater percentage owned, the less rent you will pay.
You will need to arrange a mortgage on your share, so using the example above, if you purchased a 50% share you would need a mortgage on the purchase price of £100,000 – so in effect you could proceed with a 5% deposit of £5,000.
You will pay both mortgage and rent on the property.
Over the course of the mortgage, you can increase the share you own via a process called staircasing, which allows you to gradually purchase more and more of the property.
Not all mortgage lenders offer shared ownership mortgages and there is specific eligibility criteria you will need to meet, so speak to a specialist Shared Ownership broker in Wakefield to understand what rates will be available to you.
Enquire today – there is no obligation to go ahead and your credit score will not be impacted.
There are a few lenders that allow you to purchase with no deposit – for more information please talk to one of our Wakefield based mortgage advisers.
Some of the lenders who offer Shared Ownership mortgages do consider applicants with a less than perfect credit history.
Yes, as long as you have accepted an offer on your own home then you can apply for this scheme. Certain criteria will apply so get in touch with us for more information.
No, although you don’t need to be a first time buyer to qualify for the scheme, you must have accepted an offer on the sale of your current home to qualify.
You can search on national property listing websites, speak to homebuilders, or look on your local council’s or housing associations website to name a few options.
