Shared Ownership

Shared Ownership mortgages are used for part buy, part rent schemes usually referred to as shared ownership. These type of mortgages are very popular with first time buyers because they give those new to the property market the opportunity to take a share in a property for a fraction of the cost of an outright buy. However, shared ownership mortgages can only be secured on properties offered by housing associations or councils, sometimes in association with major house builders. Because you only own a share of the property, you will not benefit from all of the equity growth if the housing market rises in value.

When you buy a shared ownership property, you will only buy a percentage stake in the property, usually between 25-50%, from the housing association. You can, however, ‘staircase’, which means buying another portion of the property at a later date. This way you can gradually build up your percentage in the property, spreading the cost of purchasing more of the house over time. The scheme is open to everyone via associations – you do not have to be an existing member of a housing association to take out a stake in a shared ownership property.

Shared ownership mortgages are a great way for first time buyers to take their first steps up the property ladder, and shared ownership schemes are becoming popular across the country. If you would like to know more about how you could benefit from a shared ownership scheme or want to discuss the details of a shared ownership mortgage, contact us today and our experts will talk you through the process, step by step.