Shared Ownership is a government-backed scheme, designed to make stepping onto the property ladder more affordable. Buy from 25% - 75% of a home normally with a mortgage and a deposit, and pay a low-cost rent on the remaining unpurchased share; this is why it’s also often referred to as a part buy, part rent way to purchase a home.
You can also increase how much of the home you own when you want to buy more, meaning you could own your home outright, bit by bit, when you can afford to. Your home, your rules.
By buying a share of the home, you won’t need to raise as large a mortgage. What’s more, the deposit you’ll need is based on the share value you buy, not the full market value; this could be as low as 5% of the share too.
For example, you’re looking to buy a home with a full market value of £200,000. You’re able to buy a 25% share for £50,000. Great. Even better, your 5% deposit is based on the 25% value, so you might only need £2,500. You read that right, less than £3k. Great huh?
The eligibility criteria for Shared Ownership is simple; as long as you don’t currently own, or won’t own another property when you move in to a new home, you’re likely to qualify.
Your annual household income (that’s both yours and your partners’ if buying together) can’t exceed £80,000 and you’ll need to have savings to cover purchasing costs such as solicitors fees and your mortgage deposit. There’s no minimum income; you just need to be able to afford to buy the home and the housing association selling will often give you a guidance income.
No age restrictions. It doesn’t matter what you do for a living. Buying on your own, with a partner or friend or you have children, there could be a Shared Ownership home just for you.
Looking to buy in East Hampshire? Great, you’re in the right place! Just to let you know, priority will be given to people that either live, or work (or both!) in the area already, but don’t let that put you off if you don’t tick these boxes; contact us today to see what we can do.
Buying a home with Shared Ownership should be affordable in the long run, not just the short term; that’s why we're required to check your financial situation including understanding your monthly income and your outgoings. A financial check, or ‘assessment’, will be carried out before an offer is made because let’s face it, no one wants to live in a new home if you can’t then afford to enjoy it!
An independent mortgage advisor will help to see how much you can borrow for your mortgage, what deposit you’ll need, and what your interest rate will be; this will be based on your household income (salaries and any other regular income), any monthly payments on debts such as loans or credit cards, as well as other regular monthly outgoings such as child maintenance or contractual payments.
Your credit score will also be used to find the right mortgage lender for you. Along with knowing how much you have in savings to put towards your deposit will then help the advisor, us, and just as importantly, you, to establish what percentage share you can buy.
Any hey, don’t forget that the more you buy, the less rent you pay; winner!
Only if you want to! Shared Ownership means you are buying a percentage, or share, of a home, with the housing association you buy it from still owning the remaining percentage of the home.
Who you live with, we’ll leave up to you!
VIVID has a range of one, two and three bedroom homes across East Hampshire listed here on this website, so check out the ‘Our Homes’ section for details. See something you like? Pop your details on the enquiry form and we’ll get back to you to help you find out more.
Looking for Shared Ownership in other locations? Check out our main VIVID website here https://www.vividhomes.co.uk/my-options/buy