What does shared ownership property mean?
Asked on Jul 23 2011,
General in London |
Shared ownership is a scheme whereby the home builder (ususlly) will sell you a percentage of the property and you rent the remainder from them. You then have to pay a small mortgage and rent. When you have enough money you can buy the remaining percentage of the property or sell your share to someone else and buy another property. See the link below.
Web reference: http://www.homebuy.org.uk/homebuy_schemes.html#newbuild_h...
Answered on Jul 25 2011,
A shared ownership property is generally one owned by a housing association. You will be able to buy a set percentage of the property from them, say 40%, which will be available at the corresponding proportion of the market price. You will then pay rent on the remaining percentage of the property still owned by the HA. It is a scheme intended for first time buyers on a low to ordinary income to get a foot on the vastly inflated property ladder, but it has draw-backs. Although you do not own the property outright, and have to ask permission from the landlord if you want to make relatively small changes, or have a satellite dish for example, you are expected to arrange and pay for all repairs. When you want to buy an extra share, you have to pay for a full valuation then purchase the extra share at the current market value. And it can be difficult to move on - your circumstances are unlikely to change vastly, and your 25% or 40% share is unlikely to help a great deal in buying 100% of another property (this is particularly true in London), unless you have paid off most of your mortgage, although it is one way of saving for a deposit. On the plus side though, you are able to start to buy a place of your own. There are various schemes, and some work better than others, so check here for further info.
Web reference: http://www.shared-ownership.org.uk/
Answered on Aug 12 2011,
Didn't find what you were looking for? Ask a question
More General in London questions on AskMe
See more AskMe Q&A about General