Shared Ownership

this is a scheme available to Housing Association Tenants – however as well as the usual criteria of it being your only or main home, there are more restrictive eligibility criteria; it is only available for new builds, or properties acquired after 1997 by the relevant housing association. Your association must also be registered with the regulator of social housing in order for you to participate.

help to buy covers a number of government schemes designed for those who lack enough deposit to buy a home. The help to buy equity loan scheme for first time buyers allows you to borrow between 5 and 20% (up to 40% in London) of the value of a new home. You have to provide at least 5% deposit, and There is a maximum ceiling on property value, which varies by region, London is currently set at £660,000. You will eventually pay interest on the government loan, there is 5 years interest fee, at a monthly interest of 1.75%, but you won’t make monthly repayments, but instead pay if you sell your home, pay off your mortgage, or the loan term ends. Your loan interest will be affected by changes in the Consumer Price Index (CPI)

these schemes allow you to buy a portion of your home, (between 25 and 75%) and rent the rest, which is retained by the local housing association as their property. These schemes offer lower cost options for ownership, but there are a number of issues to be aware of. You can increase the share, called ‘staircasing’ but this tends to be expensive. You will need to obtain a specialist mortgage to facilitate the purchase, as Loan to Value (LTV) criteria are different for properties where you will only own a portion. Your annual household income must be below £80,000 when you apply. Schemes are limited to first time buyers, existing shared owners, and those who may have owned property in the past. All shared ownership properties are leasehold, and therefore you will pay an annual management fee. You will need a new mortgage if you want to buy out the remaining share.