Posted on: January 8th 2020   •    Posted in: Development, General News

Shared Ownership – The in’s and out’s

Shared ownership facts;

  • It’s another way to buy a home
  • You only need a 5% deposit
  • Yes, you can decorate
  • You can buy more shares in your home
  • Step on the property ladder

Shared ownership myths;

  • You share with a stranger
  • It’s for first time buyers only
  • You can’t sell your home
  • It’s more expensive

Shared Ownership is a way to help you take your first steps onto the property ladder. Helping you become a homeowner.

You don’t have to have the savings required to buy a property outright.

We have a commitment to provide homes across the East of England. This means we want to offer an affordable way onto the property ladder. We can do this by building new homes, as well as selling older properties.

So how does it work?

Shared Ownership allows you buy a percentage share of a home based on what you can afford. This means a lower deposit and a smaller mortgage, making it an affordable way to get on the property ladder.

You start by buying between 25% and 75% of your home and pay a monthly rent to us on the rest.

In the future, you can buy more of your property and increase your ownership to 100%. Or sell the share that you own if you decide to move on. Until then, it’s your home to make your own!

For Example

  • Buying a 50% share in a home worth £200,000.
  • You will need a deposit and mortgage for £100,000.
  • Then you pay a small monthly rent on the 50% share you don’t own. Plus the amount you need to pay towards the mortgage
  • Monthly rent (to us) + Monthly mortgage amount (to mortgage provider) = Total spend amount
Havebury working example
  1. A property for shared ownership in Suffolk may cost £250,000
  2. You are able to purchase a 40% share
  3. The cost of your share would be £100,000 (this money would come from a mortgage)
  4. You would need a minimum deposit of 5% which in this case would be £5,000
  5. Based on a 30 year mortgage term at a 4.25% interest rate you would pay £467 a month to your mortgage provider
  6. You would pay Havebury £344 a month in rent
  7. Your total outgoing to own a 40% share in the property in suffolk would be £811* per month (*excluding service charge)
Who Can Buy?

It’s not only for first time buyers!

Shared Ownership is a great option for a range of purchasers. Especially if you want to get on the property ladder but cannot afford to buy a home outright on the open market. For example;

  • They’re planning to start a family
  • Have experienced a relationship breakdown
  • Wanting to downsize.
What else do I need to know?

All homes bought through Shared Ownership are leasehold. Your lease agreement sets out your rights and obligations in full.

It’s important to go through these details with your solicitor.

In most cases, you can buy 100% of your home outright and become the freeholder. It’s always best to ask first though, so please get in touch with the team if you have any questions.

So, whether you’re a first time buyer or home mover, Shared Ownership can help you get a home better suited to your needs!

Why not find out more here

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