Shared Ownership Properties in Kent
Shared Ownership in Kent
The government supported home-buying scheme, which offers the opportunity to buy a share of the property from a housing association, is called Shared Ownership. It applies not only to new build complexes but also to resale homes.
Shared Ownership scheme mean that the purchaser only pays the mortgage for his share of the home. The rest of the rent is paid to the housing association. Using this scheme, the mortgage needs a considerably less amount of money. Also, the amount for making the required deposit is much lower than with a direct purchase.
| 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 |
How does Shared Ownership Kent work?
To put it simply:
- Buyers decide for themselves how much of the property they can afford. The minimum share is 25% while the maximum share is 75%, depending on the developer. In some cases, in the staircasing process, you can buy out 100%.
- Next, buyers pay a deposit, which must be at least 5% of the value of their share (not the full purchase price!).
- To cover the rest, you need to take out a mortgage.
- Monthly costs: you pay rent on the part you do not own + mortgage payments.
*If desired, buyers can increase their share in the home. This process is called staircasing. Typically, this process can continue until the tenant owns 75% of the property. It is very rarely 100%.
What are the eligibility criteria for Shared Ownership Kent?
Requirements to use a Shared Ownership scheme in Kent:
- Be at least 18 years old.
- Annual household income must be less than £90,000 (in London).
- Annual household income must be less than £80,000 (outside of London).
- Not allowed to own another home. If you already own another property (in the UK or abroad), you must be in the process of selling it.
- The buyer should not have the money to buy a home that meets his needs on the open market.
- To purchase one of the Shared Ownership homes, you must prove the absence of mortgage or rent arrears.
- Able to demonstrate a good credit history and show that you are able to afford the regular payments and costs involved in buying a home.
- It is preferable that the purchaser has some savings. He should be able to procure at least £4,000 to cover the costs of buying a home.
*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.
Can I increase my share of my Shared Ownership property to 100%?
Shared Ownership Kent gives the chance to expand your portion of real estate possession whenever you are ready. This process is called staircasing. Prior to purchasing a home, ensure your housing association allows you to use this opportunity. Commonly, the provisions of the rent accept that staircasing happens in tranches of at minimum 10%. Sometimes you can quickly buy the whole wanted piece of the property. The cost relies upon the current worth of the house. To possess 100% of the property, actually take a look at the agreement, as some lodging associations limit this choice to 75%. Always discuss the factual details with the developer.
How does staircasing work?
Using the staircasing scheme, you can get 1% of the house at a time as an additional part. The expense of this share depends upon the current market cost of the house. To get a trustworthy price assesment, ask a certified appraiser who will advise the housing association how much should be charged for the additional share in Shared Ownership houses that you really want to buy.
Also, look out for various expenses. Even though the additional part is already part of the existing home, the purchaser needs to restructure the home mortgage or pay stamp duty. The usual amount of costs you will spend during the staircasing is around £2,000. In any case, it can change due to some individual factors.
Shared Ownership Kent pros and cons
| Pros | Cons |
| + Low deposit. You can purchase the home you want by paying a much lower mortgage than when buying the whole property. | - Unstable cost. Although rents are initially low, they can rise over time. |
| + Staircasing. You can increase your share of home ownership anytime. | - Extra fee. You will also have to pay for land and property maintenance. |
| + Easy sale. You can sell your piece of the property whenever you want. | - Repair restrictions. To upgrade your apartment, you need a permit from the housing association. |
| + Own choice. You decide for yourself how much of your property you want to own. | - Prohibition of subletting. The Housing Association may place restrictions on your renting out property. |
Popular locations for Shared Ownership
Prices for new buildings in other cities
| Surrey | from £612 / ft2 |
| Essex | from £415 / ft2 |
| London | from £937 / ft2 |
| Hertfordshire | from £567 / ft2 |
| Berkshire | from £456 / ft2 |
| Buckinghamshire | from £581 / ft2 |
| Milton Keynes | from £349 / ft2 |
| Manchester | from £366 / ft2 |
| Greater Manchester | from £334 / ft2 |
Prices for apartments in other cities
| Surrey | from £155 000 |
| Essex | from £225 000 |
| London | from £192 000 |
| Hertfordshire | from £250 000 |
| Berkshire | from £225 000 |
| Buckinghamshire | from £195 000 |
| Milton Keynes | from £214 995 |
| Manchester | from £160 000 |
| Greater Manchester | from £125 000 |