Are you interested in owning your own home but struggling to afford it? Shared Ownership could be here to save the day (and your finances). Using this handy part-buy, part-rent scheme, you can purchase a portion of your home and rent out the part still owned by your housing provider.
If you’re a Shared Ownership newbie, buying a property using the scheme might seem tricky. Here are some useful tips to make sure you make the most informed decision:
Shared Ownership advice:
- Research the development
- Do the calculations
- Get pre-approved for a Shared Ownership mortgage
- Consider your location
- Ask about shared spaces
- Know your options for buying more shares
- Get advice from other Shared Ownership homeowners
Research the development
Shared Ownership might sound like a perfect idea on paper, but make sure you know exactly what it involves! Take the time to understand how Shared Ownership works, what the costs are, and who the best housing providers in your area are. Doing your research will help you make a confident decision, and find a home that meets all of your needs.
Learn more about Shared Ownership
Do the calculations
Unless you’re a gifted mathematician, it can be challenging to wrap your head around the costs involved with Shared Ownership. Make sure you understand how to pay for the scheme, including your initial deposit, mortgage repayments and the subsidised rent you’ll pay on the side. And make sure to factor in additional costs like valuation fees, legal fees, and potentially even stamp duty!
Cost of buying a Shared Ownership home
Get pre-approved for a Shared Ownership mortgage
Just like with buying a traditional home, you’ll need to get pre-approved for a mortgage to buy a Shared Ownership property. Not all lenders offer Shared Ownership mortgages, so it's essential to find a lender that does and get pre-approved as soon as possible.
With a pre-approved mortgage, you'll have a better idea of how much you can borrow, and your house-hunting can truly begin.
Consider your location
One of the best parts about Shared Ownership is that there is no limit to what area you choose to live in! Shared Ownership homes are available all over London and can be found in some of the best parts of the capital city.
So think about what kind of area you want to live in, whether it's a quiet suburban neighbourhood or something right at the heart of the action in Central London.
Discover homes in great locations
Ask about shared spaces
Shared Ownership offers you the chance to live a luxurious life without paying luxury prices. Case in point: many Shared Ownership homes come with plush shared spaces like gardens and balconies.
With this in mind, find out what shared spaces are available and how they can enhance your day-to-day life. Shared spaces might not be your first priority when buying a home, but it’s always worth finding out what you’re getting for your money.
Know your options for buying more shares
The excitement of buying your first home doesn’t end once you’ve bought a share of your Shared Ownership home. Once you’ve lived at your Shared Ownership property for a set period of time (usually 1-2 years), you’ll soon get the option to purchase more shares through ‘staircasing’. If you dream of owning all of your home one day, staircasing is a quick and affordable way to do it!
Get advice from other Shared Ownership homeowners
Want to find out what Shared Ownership is really like? Why not ask someone who has first-hand experience living in a Shared Ownership property? Whether you ask a friend of a friend or reach out to a homeowner who used the scheme, this could be the best way to get an unbiased view of the Shared Ownership experience.
If you want to take advantage of Shared Ownership, Peabody could help you find your dream home in style. With a selection of high-quality homes available through Shared Ownership, there’s no better way to find an affordable home in an area you love.
