If you’re in a position to buy a home but can’t quite make your finances stretch to cover 100% of the purchase price, don’t worry – you’re not alone!
HomesHub believe that homeownership should be open to everyone, no matter your individual circumstances. That’s why our Shared Ownership scheme has been designed for those who can’t quite afford the full cost of their home upfront, giving you the opportunity to spread the cost and make the purchase much more manageable for you.
How does it work?
Designed as a cross between renting and buying, you can get a smaller mortgage to cover what you can afford (anywhere between 25-75% of the value of your home), and you will effectively ‘rent’ the part you don’t own at a highly reduced rate. What’s more, all our Shared Ownership homes are priced 20% lower than current market value, giving you the opportunity to purchase larger shares in your home as and when you can afford to.
What are the benefits of using Shared Ownership?
The main benefit of buying your home through Shared Ownership is that it removes the main barriers many aspiring homeowners have to overcome to own their own home. With the Shared Ownership scheme, you need a smaller deposit (at least 5% of the property’s value) and can apply for a smaller mortgage that just covers your share of the property.
One of the other main benefits of Shared Ownership is the flexibility it offers – you can buy more shares in your home as and when you can afford to. This is called ‘Staircasing’, and as you buy more shares you pay less rent. You can eventually own 100% of the property if you want to, at which point you will pay no rent at all.
Am I responsible for the upkeep of my property even though I pay rent on some shares in my home?
Yes – with the Shared Ownership, you are a part-owner in your home, so just like any other homeowner, you will be responsible for things like utility maintenance and keeping your home in good condition.
However, if for example you live in an apartment with a communal area, you will not be responsible for the upkeep of this area but will be liable for a small service charge. Details of the rent and service charges payable for each property will be explained to you by the HomesHub team before you make the purchase.
Am I eligible for Shared Ownership?
To be eligible for Shared Ownership:
– Your household must earn £80,000 a year or less
– You must be a first-time buyer or have sold/have a firm offer on your current home.
– Your income is sufficient to cover the mortgage rent and service charges.
– You must complete a Shared Ownership Eligibility Application, which can be found here