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!
At HomesHub by Plus Dane Housing, we believe that home ownership should be open to everyone, no matter your individual circumstances. That’s why we love Shared Ownership! This scheme has been designed for those who can’t afford the full cost of their home upfront, giving you the opportunity to spread the cost to suit your budget
How does it work?
Designed to be 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 then ‘rent’ the part you don’t own at a reduced rate. You can then purchase larger shares in your home as and when you can afford to in the future, if you wish to.
What are the benefits of using Shared Ownership?
Buying your home through Shared Ownership removes the biggest barriers to home ownership many people face. With the Shared Ownership scheme, you need a smaller deposit (starting from as little as 5% of the property’s value) and can apply for a smaller mortgage to cover only your share of the property.
It’s also flexible – you can buy more shares in your home as and when you can afford to. This is called ‘staircasing’; as you buy more shares, you pay less rent. You can eventually own the maximum percentage share of the property if you want to, which is usually 100% – 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 shared ownership you are a part-owner of your home, so just like any other homeowner you will be responsible for things like utility maintenance and keeping your home in good condition.
If you live in an apartment with a communal area, you will need to pay a service charge that goes towards the upkeep of the communal area and fabric of the building. We will explain the rent and service charges payable for each property before you complete your purchase.
Am I eligible for Shared Ownership?
To be eligible for Shared Ownership:
– Your household must earn less than £80,000 a year
– 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