What is shared ownership?
Posted on 4th February 2022
Shared ownership schemes are becoming more and more popular. This type of property ownership allows you to buy a share in a property and then rent the rest from a housing association.
It's a great way for first-time buyers to get on the property ladder, as they don't need to take out a mortgage for the entire purchase price. However, there are some things you need to be aware of before taking out shared ownership.
In this blog post, we will discuss the pros and cons of shared ownership, and tell you what you need to know before buying into one of these schemes.
If you are thinking about buying into a shared ownership scheme, here's what you need to know:
- You need to be a first-time buyer to qualify, or be in an urgent situation to move.
- You will need a mortgage to buy your share in the property.
- The housing association will own the other half of the property, and you will pay rent to them.
- You can't live in the property indefinitely - there is usually a time limit on how long you can live there.
- You can't always buy more shares in the property, depending on the scheme.
- It can take a while to purchase more shares in the property.
- It's a great way to get onto the property ladder if you can't afford to buy a house outright.
- You don't need a huge deposit like you do with an ordinary mortgage.
-Insurances you will need are buildings and contents insurance. you will need to get this from a broker as it can be hard to find.
We hope this answers any questions you might have about shared ownership schemes. If you'd like to find out more, talk to your local housing association or estate agent.
0116 3409989
sales@thepropertyfox.co.uk
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