Farrell Heyworth Estate Agents help you find your next home, sell your current home or rent out your property. We are a one stop shop because we specialise in Residential Sales, Lettings, Auctions, EPCs, Mortgage Services, Conveyancing and Surveys and Valuations. FH are one of the largest independent estate agency groups, with over 600 Home Sale Network offices and 20 Farrell Heyworth offices in the North West.
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Shared ownership is an initiative that has been provided through housing associations for a while and is a way of part-owning and part-renting a property. John French, Sales Director from Mortgage Advice Bureau at Farrell Heyworth Estate Agents looks at the details of the scheme and what it entails.

What is shared ownership?

Shared Ownership is aimed at people who cannot afford to buy their home outright, the scheme allows you to buy a stake of 25-75 per cent in the property with a mortgage. You then pay rent on the remaining share that remains owned by your local housing association.
The amount of rent you pay can vary but is capped at 3 per cent and is calculated on the share of the property retained by the housing association.

For example, if there was a property valued at £150,000 bought on a 50% share, the initial rent would be £75,000 x 3 per cent = £2,250 per annum, paid monthly at £187.50.

You would then pay the mortgage payment for the £75,000 you have purchased on top of the rent.

You can keep on buying…

Known as ‘staircasing’, you can purchase additional shares in the future as and when you can afford to, and you can continue to do this until you own the property outright.

Every time you ‘staircase’, the amount of rent you have to pay will be recalculated and will reduce proportionately. However, you are not forced to buy further shares and the original share split can remain in place.

Where are shared ownership schemes available?

The schemes are available nationwide, though it should be noted that not all lenders offer mortgages for shared ownership.

The shared ownership schemes are important in helping people who are looking to get a foothold on the property ladder but are struggling to do so, and, as with any housing scheme, it is important to discuss the details with a professional mortgage adviser who will be able to find the most suitable deals for your situation.

For further information call into your local Farrell Heyworth office, freephone 0800 389 1666 or visit www.mortgageadvicebureau.com/farrellheyworth .

Your home may be repossessed if you do not keep up repayments on your mortgage.
There will be a fee for mortgage advice.  The actual amount you pay will depend upon your circumstances.  The fee is up to 1.5%, but a typical fee is 0.3% of the amount borrowed. 

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