Shared Ownership allows you to get on the property ladder as an owner-occupier, offering long-term stability without overstretching yourself. Shared Ownership makes mortgages more accessible, even if you’re on a lower wage. Your monthly repayments can often work out cheaper than if you had an outright mortgage.
How soon can you staircase shared ownership?
Usually, you can staircase your shared ownership property after you have owned it for period of time. This is often one or two years, but these terms will be laid out in your lease. For example, if you had owned your property for two years, you could then buy another 10% share, or ‘tranch’ of the property.
Can you negotiate shared ownership price?
With a shared ownership scheme, the buyer takes out a mortgage for a share of the property – usually between 25 and 75 per cent – then pays rent on the rest. The sale price in this case is set by the property valuers and is non-negotiable.
How does shared ownership work in the UK?
Shared ownership schemes, where you buy a share of your home and pay rent on the rest, have helped thousands of people on to the property ladder in recent years. But some who signed up say they are the victim of tough housing association rules that ban them from renting out their property to anyone else.
Can a housing association sell both shares at the same time?
Selling the housing association’s share alongside yours is called ‘back-to-back’ staircasing. This means that the new purchaser acquires both shares at the same time. If you choose this option you are often able to complete the sale as you would with a freehold property.
Can a shared ownership property be sold on the open market?
You can sell your shared ownership property at any time, but there are a number of fees you’ll need to factor in (see below). The housing association also has the right to try to find a buyer before you put it on the open market. This is known as the ‘nomination period’. Nomination periods vary depending on the housing association.
Why does Andre and Emily have a shared ownership flat?
The couple, who have an eight-month-old son, say they are tied to the shared ownership flat Andre bought just before prices fell, and feel they have no options available. “I’ve seen on various blogs and forums that there are other people in this situation,” says Emily, 36.
