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Shared Ownership: A Pathway to Homeownership in 2024

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The property market has been up and down over the past few years. One thing that has remained constant is the demand for affordable housing. Shared ownership has emerged as a popular option for those who want to get onto the property ladder without breaking the bank.

 

What is Shared Ownership?

Shared ownership is a scheme that allows you to buy a share of a property, typically between 25% and 75%. You then pay rent on the remaining share to a housing association or other provider. This means that you can spread the cost of buying a home over a longer period and make monthly payments more manageable.

 

Why is Shared Ownership a potentially good option?

There are many reasons why shared ownership is a good option for those who want to get onto the property ladder. Here are just a few:

  • Lower deposit requirements: Shared ownership schemes typically require lower deposit payments than traditional mortgages. This can make it more affordable to get started on your homeownership journey.
  • Reduced monthly payments: As you only own a share of the property, your monthly mortgage payments would potentially be lower than they would be for a full property. This could help you to manage your budget and avoid overstretching yourself financially.
  • Flexibility: Shared ownership allows you to gradually increase your share of the property over time. This could be a great way to build equity and eventually own your home outright.

 

What are the Eligibility Criteria?

There are a few eligibility criteria for shared ownership schemes. These typically include:

  • Be a first-time buyer or have previously owned a property for less than three years.
  • Have a steady income.
  • Be able to afford the monthly mortgage payments and rent.
  • Able to pass a credit check.

 

What are the Pros and Cons of Shared Ownership?

Pros:

  • Potentially lower deposit requirements
  • Potentially reduced monthly payments
  • Flexibility to increase your share over time

Cons:

  • You will have to pay rent on the remaining share of the property.
  • There may be restrictions on how you can use the property.
  • You may not be able to sell the property as easily as a traditional property.

 

Is Shared Ownership Right for You?

Shared ownership may be a good option for you if you are:

  • A first-time buyer who is struggling to save a large deposit.
  • Looking to get onto the property ladder without overstretching yourself financially.
  • Open to the idea of gradually increasing your share of the property over time.

 

With potentially lower deposit requirements, reduced monthly payments, and the flexibility to increase your share over time, shared ownership can be an affordable and achievable path to homeownership.

Valunation can carry out a survey on your property, please contact us on 01206 363658 or referrals@valunation.com