As a way to buy your own home without blowing your life savings, Shared Ownership is a great option for people looking for an affordable new build home. However, there are still many misconceptions about the scheme - which could put the average home-buyer off pursuing their home-buying dreams!
Heard something mysterious about Shared Ownership, and trying to get to the bottom of it? With our Shared Ownership myth busting guide, you’ll be able to separate the fact from the fiction.
Myth 1: Shared Ownership involves living with a complete stranger
If you’ve never heard of the term Shared Ownership, you could be forgiven for thinking that this involves ‘sharing’ your home with a complete stranger. However, that isn’t what Shared Ownership actually means. Instead, Shared Ownership is a scheme where you buy a share of your dream home while renting the part still owned by your housing provider.
This gives you a more manageable way of building equity in your home and eventually owning it outright. So when you first set foot in your dream home, you won’t have to worry about sharing your space with someone you don’t know!
Myth 2: I can’t afford a Shared Ownership mortgage and rent
Given that Shared Ownership involves both mortgage repayments and renting, Shared Ownership might sound quite expensive on paper. But in reality, you (and your wallet) can rest easy. With Shared Ownership, you only need to pay a mortgage on the share you own, resulting in smaller mortgage repayments.
What’s more, the rent you pay on your property will work out cheaper than traditional renting, which is around 20% higher. Depending on the share you buy, and the area you buy in, Shared Ownership can often work out cheaper than renting privately!
Cost of buying through Shared Ownership
Myth 3: Shared Ownership is only for first-time buyers
Shared Ownership was originally introduced to help people struggling to buy their home, so it’s easy to believe that the scheme is only available for first-time buyers. But the reality is far more complex!
While the scheme is mainly directed at people starting their home-buying journey, it’s also available for people who have bought a home before - just as long as they are in the process of selling. The main criteria is based on your household income - in London, you need to earn less than £90,000 to qualify for a Shared Ownership home.
Myth 4: Shared Ownership prevents you from owning your whole home
If you are new to the world of Shared Ownership, you might think that you can only ever own a share of your home. But if you have aspirations to own all of your home one day, don’t panic - Shared Ownership could help you out. How? Through a handy process called staircasing, which enables you to buy more shares of your property over time. The more shares you buy, the cheaper your rent works out!
Myth 5: Shared Ownership is only available on new build properties
For people who want the blank slate of a brand new home, Shared Ownership is an affordable way to make this possible. However, that doesn’t mean Shared Ownership is only available on new-build homes. If you prefer something a bit more classic and traditional, the scheme can be used to buy a variety of different homes, from traditional homes to resale properties. In other words, there’s something for all kinds of preferences!
Myth 6: Shared Ownership isn’t available in nice areas
Given that Shared Ownership offers a more affordable route to the housing ladder, you might think that your options for where to live are more limited. Prepare for a surprise - Shared Ownership doesn’t just broaden your living options, it's also available in some of the best parts of London. At Peabody, our Shared Ownership properties are dotted all over London, whether you want to live on the outskirts of the city, or be at the heart of the action, like at Zone Oval Village. And for those looking for homes outside of the Capital, there are developments like The Aviary in Oxford, which offer family homes through Shared Ownership.
Discover Shared Ownership homes in great locations
Myth 7: I can’t decorate my home
Given that you are still renting a substantial part of your property, you might think the rules for decoration are the same as renting - don’t change anything without your landlord’s permission. But with a Shared Ownership home, you get far more license to redecorate your place as you see fit!
From hanging up a classy piece of artwork to brightening up your space with some houseplants, let your passion for interior design run wild. The only limits to your imagination will come if you want to make bigger structural changes, which will require the permission of your housing provider.
Looking to take advantage of Shared Ownership? At Peabody, you can choose from a selection of stylish Shared Ownership homes throughout London and the Home Counties.
