Are you dreaming of owning a home in the UK? “Shared ownership”, this government-backed scheme allows you to purchase a share of a property while paying rent on the remaining portion, making it a more affordable option for aspiring homeowners.
Shared ownership homes offer a promising path to make that dream come true. Here are the top 5 suggestions to help you through the process of buying a shared ownership home and make a successful purchase if you’re thinking about making the move.
Understand Shared Ownership Basics:
Before diving into the shared ownership journey, it’s crucial to understand the fundamentals. Shared ownership allows you to buy a portion of a property, typically ranging from 25% to 75%. You will pay rent on the remaining part, which is owned by a developer or housing organisation. This arrangement makes it more accessible for folks who might not have the resources to buy a home off the open market. Staircasing is the process of gradually increasing your ownership share in a shared ownership property. It’s essential to learn how this works and plan for potential future staircasing to gain more control over your home.
Let’s now take a closer look at five invaluable tips that can help you get through the shared ownership process with confidence and help you achieve your goal of homeownership.
- Exploring Shared Ownership Plans There are various shared ownership plans available in the UK, each with its unique features. Some focus on key workers, while others target specific regions or types of properties. Research the different schemes to find the one that aligns with your circumstances and needs.
- Assess Your Eligibility Shared ownership isn’t open to everyone, and eligibility criteria can vary. Shared ownership schemes are typically designed for first-time buyers or first-time homeowners. Income limitations are also included to ensure the scheme is beneficial to those with fewer resources. Before proceeding, make sure to assess your eligibility, considering your homeownership history and income.
- Budget for Costs While shared ownership can be more affordable, it’s essential to budget for various costs associated with buying a shared ownership property. Your mortgage, rent, and service fees are among these expenses. It’s also vital to factor in additional expenses like solicitor fees and stamp duty, which may apply in certain cases. You’ll be more ready to handle the financial responsibilities that come with shared ownership if you carefully manage your budget. Owning a shared ownership property requires financial sustainability. Ensure you have a plan in place to meet mortgage payments, rent, and other expenses over the long term. Assess your financial situation regularly to adapt to any changes.
- Research Available Properties Once you’re clear on your eligibility and budget, it’s time to start researching available shared ownership properties. You can explore these through housing association websites, property listings, or government websites dedicated to shared ownership. Pay attention to the location, property size, and the percentage of ownership available. Spend some time getting to know the neighborhood and the shared ownership community because they will be a big part of your living experience.
- Seek Professional Advice Navigating the shared ownership process can be complex, so seeking professional advice is a wise choice. To better understand your financial status and locate the finest mortgage offers, you might wish to speak with a financial counsellor who focuses on shared ownership. You can also get assistance from a lawyer skilled in shared ownership transactions as you navigate the legal requirements. Engaging housing organizations or developers who can offer insightful information about the particular properties you’re interested in is also advantageous.
In conclusion, shared ownership is a fantastic opportunity for individuals and families in the UK to become homeowners. By following these top 5 tips and seeking professional advice, you can confidently embark on your journey to buy a shared ownership property that suits your needs and budget. Your ambitions of becoming a homeowner will be one step closer to being a reality with the appropriate strategy and careful planning.