For many first time buyers, finding the money for a full deposit or mortgage can be difficult. If you don’t have enough money saved up shared ownership is a flexible way to build up equity in a property which you co-own with the housing provider. Shared ownership schemes allow you buy part of your property from a social landlord or housing association and then pay rent on the rest.
Most schemes allow you to buy an initial stake in a shared ownership home between 25% and 75% of its value, with the option to buy a larger share later. This process is known as ‘stair-casing’. Many people pay for their initial share by taking out a shared ownership mortgage, but you can also use personal savings to purchase equity. There is an eligibility criteria for shared ownership including:
- You are a first time buyer, or used to own a home but cannot afford to buy one now
- The household income being less than £80,000
Our partners have over 50 years combined experience. We specialise in family law including divorce, children issues and financial implications, and also in property and commercial work, and wills, estate and Probate. Though we specialise in family law, we can help in a wide range of legal matters.
Shared ownership properties are always leasehold rather than freehold. We will be able to advise you on the implications of this as well as perform the necessary checks to ensure the terms of the leasehold don’t compromise you
Help to buy and help to buy ISA solicitors Hitchin
Getting on the housing ladder can be tough, the government’s ‘Help to Buy’ scheme can make a huge difference to the fortunes of first time property buyers. There are three main elements to Help to Buy schemes to buy your first property, these are:
- A government-backed mortgage guarantee
- An equity loan
- A Help to Buy ISA which the governments tops up by 25% when you come to buy your house
At Ross Williams Solicitors we are very familiar with the shared ownership schemes and will be more than happy to guide you through this process. To speak to our specialist conveyancing solicitors in Hitchin, Hertfordshire for help regarding shared ownership schemes contact us on 01462 636666 or complete our online enquiry form.