Shared Ownership Myth Buster

March 2016


 

Shared Ownership is a stepping-stone to owning 100% of your own home.

It’s purpose as a scheme is to help you get on the property ladder when you believed it wasn’t possible. It provides a shorter route to owning your home than you previously thought. 

There are a lot of myths surrounding the scheme, and we want to get rid of them! We find a lot of people worry about the following things, so we’ve written a blog to explain how the scheme is there to help.

If you would like to discuss Shared Ownership with us, just get in contact with our Low Cost Home Ownership Officer, Anita Forth. She will help you as best she can.

#1 My Shared Ownership home will be ‘sub-standard’

Your new build Shared Ownership home will be built to the same regulations as an outright sale property will be. It still has to pass its NHCB check and developer check, so be safe in the knowledge your property won’t be sub standard.  

#2 I’ve only got a small deposit

There is no way around the fact you will need to put some money down as a deposit on your new home, but with this scheme it is more manageable due to the way it is worked out.

For instance, if you are buying a 50% share of a home worth £100,000 you will be taking out a mortgage for £50,000. This means if you got a mortgage with a 5% deposit you would only have to put down £2,500.

You can use this handy savings calculator to see how long it would take for you to save a deposit up. You can also read another of our blogs that gives you some top tips on how to save a deposit up.

 #3 I won’t be able to decorate my home 

Even though you won’t own 100% of your home straight away, you will be able to put your stamp on it. You can decorate it how you want it, with your own style without having to get consent for it. 

If you wanted to make a major change, or a structural change, you would have to seek approval just as you would if you had bought with Help to Buy.

#4 I’ll be sharing my home with someone else 

A common misconception that we’re seeing more and more is that people think shared ownership means you will be sharing the property with somebody else. 

This is definitely not the case whatsoever. The scheme is just a stepping-stone in to owning 100% of your home but just with a helping hand along the way.

#5 I can’t get a new home with Shared Ownership

This is absolutely not true; in fact the majority of Shared Ownership cases we deal with are for new build properties.

Housing developers have a legal obligation to provide a percentage of their stock to local housing associations, which will be used for Shared Ownership or a similar scheme.

Stay tuned for the second part of our myth buster series to clear up some more common misconceptions with Shared Ownership.

If you want to know how Shared Ownership works, check out this blog.