for roof maintenance.īe aware that even though you own a share of the property, say 30%, you are responsible for paying the full maintenance and repair costs. As well as a general monthly service charge for caretaking and maintenance of communal areas, ask how you will be expected to pay for more significant works e.g. But don’t forget to add on maintenance charges and be prepared for possible increases in the future. Hopefully the monthly mortgage repayments, plus rent will still make shared ownership far cheaper than buying a property outright.
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To find out more read our article on Shared Ownership Changesįor shared ownership eligibility requirements and how to get a mortgage for a shared ownership property, see our guide Shared Ownership Mortgages What are the downsides to shared ownership? 1. This effects properties being built under the affordable Homes Programme between 20. In 2020, the government has announced changes to some elements of how shared ownership works.
The details, costs and restrictions involved vary by provider so research each one on its individual merits and read the small print of your lease. Shared ownership schemes are provided by housing associations or private developers.
Shares can be bought in 10% increments, which will in turn reduce your rent. With shared ownership, it is possible to buy more of the home by “staircasing” i.e. In addition to that, stamp duty can generally be deferred until you increase your share of the property to 80%.īear in mind that the properties are usually leasehold properties and, therefore, you have to pay a monthly service charge, as well as, contribute to major maintenance works. Under the scheme, the cost of home ownership is made more affordable because you can start by buying as little as 25% share in a property and your deposit can be 5% of the price of that share, rather than the whole property. The rent you pay on the remaining share is charged at a discounted rate (usually 2.75% of the property value per year). Shared ownership schemes allow buyers who meet the eligibility criteria to secure a mortgage to buy a stake (usually between 25% and 75%) in a property, while paying rent on the remaining share to the housing association or private developer that own the building.
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