Shared ownership on houses
What is shared ownership?
Asked on Aug 11 2013,
New Homes in Blackburn |
You might buy 25%, 50% or 75% share in your home. You will need to obtain a mortgage to fund the share that you own. You pay a rent on the share that you don’t buy - usually up to 3 percent of the share’s value. The bigger the share that you purchase, the less rent you have to pay. The other share is usually owned by a housing association. Your income will need to be high enough that you can reasonably afford the rent and mortgage payments but low enough that you do need assistance.
Web reference: http://www.michaeltuck.co.uk/shared-ownership.php
Answered on Aug 15 2013,
Home ownership via the shared method is something that allows people to buy a proportion of a property without the full outlay that would be attached to outright buying. As mentioned above, you would buy a share, typically at a minimum of 25 per cent and then pay rent on the remainder of the home.
The beauty of this is that you can increase the level of ownership you have throughout your time in the house by slowly buying more shares, eventually letting you own the house outright and all without the one big expense.
There are criteria that need to be met though. For example, you need to have been a housing association tenant in the past, and you will need to prove that you can afford to pay for your share of the home, but cannot afford to buy outright.
Answered on Sep 6 2013,
Shared ownership is when you have a specific share % of your home and therefore you can own that percentage of your home through either a cash buy or a mortgage and then for the rest of the % you would be paying rent for it until you are in a position to fully purchase it.
Although there are other shared equity schemes which mean you could be paying 74% of the home and receive an equity loan from the government for the remaining 25% - after a certain period of time you would then repay the 35% equity loan back to the lender in order to own 100% of your property.
We hope this helps.
Answered on Sep 23 2013,
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