A guide to shared ownership

The process: 

Imagine the home you want costs £200,000 but you can only somehow borrow a mortgage of £100,000 because of your income and the sizes of your deposit. 

Shared ownership is a part buy and part rent government backed scheme which usually allows first time buyers to buy 35% to 75% share of new homes and pay rent of the remainder. If you’ve found the perfect home but you can’t afford to take out a mortgage for the full asking price, you will still need to have saved a small deposit which is usually around 5%.

Who can apply: 

This scheme supports buyers who would struggle to buy a home or even have a hard time even renting a home on the open market.

To apply you need to be the first time buyer in the permanent employment, live or work locally, have family connections to the area you want to buy in, and also have a total household income of up to £80.000.

Costs involved: 

With a 5% deposit you’ll need to pay for reservations and mortgage or survey, legal fees and stamp duty you will also need to factor in the coast of moving homes, example hiring and removal firm. 

Ensure that your budget is enough to purchase the property, as surveyors and legal fees may be higher than normal, either have the cash ready to buy the property outright or find a specialist lender that is happy the lend on the property before you make an offers.  

Advice: 

Secure a specialist legal company to carry out the buy, usually someone local to the area that has experience of any additional properties needs and renovation. 

Also make sure you secure the help of builders with experience in renovating properties via a contract. While market rates increased across the country, rents increase for tenants who renewed their leases.       

At Discount Insurance we provide high quality Landlord Insurance to suit your needs at a price that will suit your budget!  Give us at 0800 294 4522 for a quick quote today!