Shared ownership makes home ownership more affordable. You buy a “part” of your house and pay the remaining rent. It is particularly suitable for people with a regular income who want to buy their own home but can not do it by conventional methods. Find out how shared ownership works and if you qualify.
Who is eligible for shared ownership?
The scheme is for people who can not buy a suitable home in another way. It is provided by the “HomeBuy agents”, who will decide if you can buy a house in this way. HomeBuy agents are housing associations that have been authorized to run projects for people who have difficulty buying a home.
You can only buy a house under shared ownership if:
A household is the number of people who buy the house. For example, a family maybe you or your partner.
Shared ownership is open to:
– people who rent real estate from the town hall or housing association, buyers for the first time (you are the first buyer if you have never owned a house)
You can also get help through a shared property if you owned a home, but you can not buy one anymore.
How does it work?
You can buy a 25%, 50% or 75% interest in your home. You must obtain a mortgage to finance the stock you own. You pay rent for the part you are not buying, usually up to 3% of the share value. The more you buy, the lower the rent you have to pay. The other party usually belongs to a housing association. Your income must be high enough that you can reasonably pay rent and mortgage payments, but low enough for you to need help.
The properties of the shared property are still in a lease. That means you own them for a fixed period, usually 99 years.
When you buy your house, you become the owner of the lease. The housing association will grant you a lease for the specified period. Although you do not buy directly, shared ownership means you have the exclusive right to occupy. You have the usual rights and responsibilities of a fully occupied owner, as defined in your rental agreement.
Gradually, you can buy more shares on the property, called stairs, and finally own your home. If you wish to purchase additional shares, you must inform the housing company, which will evaluate the property. The price you pay will be the percentage of the market value based on the percentage rating you buy.
How to request the shared ownership scheme
If you are interested in buying a home through a shared property, you need to contact the HomeBuy agent of the area where you want to live. Each HomeBuy agent will have an online application form that must be submitted for approval.
How to sell my shared property?
Sometimes you will want to sell the property of the shared property. You can sell the house at any time, but you must inform the housing association in writing. You can do it in two ways. Firstly, you can sell only the part you own or, second, you can go up to 100% simultaneously with the sale. With the second option, the buyers will not need to be approved because, once the operation is over, they will no longer be shared goods.
Looking for a shared ownership property in Kent? Click here for more details.