If you’re struggling to secure a mortgage for the full amount you need, or are hesitant to commit to owning and being responsible for 100% of a property, then a Shared Ownership scheme could be exactly the right move forward for you. Shared Ownership is where you pay a mortgage repayment for the share of the house you own and a reduced rental price to the Housing Association for their remaining owned share.
There are of course certain eligibility criteria you must be able to meet although these do differ from one housing association to the next dependent on factors such as area, type and size of property and percentage share you would like to purchase. Your household income will need to be proven to be below a certain amount and you must also demonstrate that you do not own any other properties in any capacity.
Dependent on how much of the ownership of the house you are wanting, you will most likely have to put down a deposit of 5% of the value of your share and then prove you have secured a mortgage for the remaining balance. As a rule, in most cases you are able to purchase between 25% and 75% of the property to begin with and then look into potentially increasing your share as time goes by should you wish to.
Buying through a shared ownership scheme requires specialist legal advice. At Morlings we have a team of conveyancing lawyers trained to offer just this.
Drawing on many years of experience dealing with shared ownership, they can:
- explain how the shared ownership scheme relevant to you operates, including the terms of any lease you will be required to sign;
- explain the terms of your mortgage offer;
- ensure you understand the financial commitments involved in proceeding;
- assess whether stamp duty land tax will be payable on your purchase;
- discuss your options where stamp duty land tax will be payable, including ways to keep your tax bill as low as possible if you plan to increase your share;
- register your interest in the property with the Land Registry;
- help you acquire a further share in the property where this is possible; and
- assist you in selling your share in the property.
We can also provide advice on other schemes designed to help get you on the property ladder, including Help to Buy Equity Loans for new build homes and the Help to Buy Mortgage Guarantee for older properties.
Advising individuals throughout Maidstone, Kent and beyond
We have offices in Maidstone, Gravesend, Tonbridge, Chatham and Tenterden where we can meet you to discuss your requirements.
We can also offer meetings at your home if necessary, and in exceptional circumstances a telephone appointment can be arranged via skype.
The cost of buying a property through a shared ownership scheme will vary depending on your circumstances. We are happy to provide a quotation after discussing your requirements.