As a government home-buying scheme, Shared Ownership provides the opportunity to buy a share of a house from a housing organization. In contrast to other schemes, this plan gives the chance to buy a share of a home in a new or resale complex for buyers who do not own real estate.
Within Shared Ownership scheme, you have to pay only for your share of the property while the rest of the lease is paid to the housing association. In this way, a mortgage is needed for a much lower sum, and the amount of a necessary deposit is also smaller than if you buy the whole property.
|Shared Ownership available on properties until 2023||Shared Ownership available on properties from 2022|
|Minimum deposit||5% of the share in the property||5% of the share in the property|
|Minimum share of property for sale||25%||10%|
|Minimum ‘Staircasing’||10% share annually||1% share annually, with reduced fees|
|Who pays for repairs||The buyer||The buyer receive support from his landowner for necessary repairs for 10 years|
|Exclusivity period for landowner to sell||8 weeks||4 to 8 weeks|
The part buy part rent scheme means that buyers decide on their own how much they can afford. Having decided on the part, buyers make a deposit of at least 5% of the value of their share. They then take out a mortgage to cover the remainder.
If desired, they can increase their stake in the home by using the staircasing process. Thus, most often you can increase your share up to 75%, and sometimes up to 100%. But the latter option is much less common, because not all housing associations allow this. Therefore, it is very important to first clarify such details with the selling organization.
Berkshire Shared Ownership allows many people to become the owner of their desired home. But before choosing this scheme, you need to make sure that you fulfill the established criteria. To take advantage of the part buy part rent scheme, the buyer must ensure that it complies with the following rules.
*Eligibility criteria may vary per housing association and therefore you should always check the exact criteria with the developer or housing association responsible for the exploitation of the property.
Shared Ownership Berkshire means that each buyer can optionally increase their ownership stake through a process called staircasing. If you plan to gradually or immediately use this option, check the specifics of this process with the housing association of which you are going to buy a house. Usually, this process takes place in 10% tranches. But sometimes buyers can immediately get the part of the property that they want. In this case, the cost of a share depends on the actual price of the property. If you want to buy 100% of the house, make sure that this option is provided. Some housing organizations restrict this right, allowing the buyer to purchase a maximum of 75%. Therefore, always check this with the developer.
How does staircasing work?
During staircasing, the purchaser can buy 1% of the property at a time as an additional share. Simultaneously, every time you make a purchase, you need to pay attention to the current market worth of the home. Also, you should not forget about other fees. Even though the additional part is already part of the existing home, the purchaser needs to restructure the mortgage or pay Stamp Duty. The medium amount of costs during the staircasing process is around £2,000. But it can change according to individual facts.
Shared Ownership houses for sale are an excellent chance to purchase an apartment that you cannot pay in full right away. However, for this enticing scheme to work for you, you need to figure out all the nuances.
|+ Minimum deposit. You can acquire the home you want by paying a much lower mortgage than when buying the entire property.||- Changing costs. Although rents are initially low, they can rise over time.|
|+ Staircasing. You can always increase your share of home ownership.||- Additional expenses. You will also have to pay for real estate maintenance.|
|+ Simple sale. You can sell your piece of the apartment whenever you want.||- Repair restrictions. To improve your house, you need approval from the housing association.|
|+ Own choice. You decide for yourself how much of your home you want to own.||- Ban on sub-rent. The Housing Association may place restrictions on your renting out property.|
|Buckinghamshire||from £581 / ft2|
|London||from £937 / ft2|
|Hertfordshire||from £567 / ft2|
|Milton Keynes||from £349 / ft2|
|Surrey||from £612 / ft2|
|Essex||from £415 / ft2|
|Kent||from £407 / ft2|
|Manchester||from £366 / ft2|
|Greater Manchester||from £334 / ft2|