Shared ownership flat
Explain shared ownership
Asked on Feb 19 2014,
General in Romford |
Shared ownership is, at the most basic level, exactly what it says on the tin - as the buyer, you will share the ownership of the property as opposed to owning it outright as you would with a conventional purchase. Normally, it will be the case that you own alongside either the developer if this is a deal they offer, or a housing association through the government's shared equity scheme.
In the latter case, you need to have lived in housing association property in the past and be able to prove that you cannot afford to buy outright, but can afford to pay your mortgage from month to month and not default.
Typically with this sort of deal, you will purchase some 50 per cent of the property in the first instance. As well as paying back your mortgage each month, you will also need to pay rent to the other owner for the other half of your property (discounted appropriately, of course).
The big bonus is that over the years you can build up your proportion of ownership, buying additional shares in the property over time until you are the owner of the home 100 per cent.
Answered on Feb 24 2014,
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