The benefits of buying your home with shared ownership
If you don’t know what shared ownership is you could be missing out when it comes to buying your first home. A government scheme that’s taking the property market by storm, shared ownership is a great way to invest in a property of your own but at your own pace. You don’t have to share with anyone else at all and in fact this scheme is most popular with people wanting to buy their first home without having to move in with anyone else or split the payment. So if you plan for 2022 to be your year when it comes to buying a property then shared ownership could be the answer.
One of the biggest hurdles when it comes to buying a home is the deposit. Saving for a deposit can be tough and at a rate of 10%, saving for one alongside renting or paying for other essentials can be nearly impossible for many people. Shared ownership helps by allowing you to buy a share in your home rather than the entire property all at once. This means you could buy between 25% and 75% share in your home and only pay a deposit on this single portion. So for a 25% share you would just pay 10% of this value meaning it could equal as little as 2.5% of the value of the home. This brings down those initial payments significantly and allows you to spread the cost while evening having enough to get that IKEA delivery in on time.
Easy on mortgages
Another benefit to shared ownership is the savings you will make on the mortgage. As you are only buying a share in a property your mortgage will be significantly smaller and being turned down for one is far less likely. This is great if you haven’t quite got your credit score in tip top shape just yet and you could do with that extra time. You will also pay less interest on a smaller mortgage and balance those monthly payments. And with plenty of portals offering shared ownership including connectwithhome.co.uk you can choose from a variety of shares on a home that suits you.
Buying more over time
Another great thing about shared ownership is you can buy more of your home over time.This essentially means you can increase your shares in your property and invest more in your home at your own pace. The more shares you own the more profit you will receive when you decide to sell your home and should you buy 100% of your property then you will receive the whole profit when you choose to sell. The remaining part that you don’t own belongs to a housing association and you pay a small rent on this so the more you buy the property the less rent you will subsequently pay. At the time of buying the home, you may want to contact residential conveyancing solicitors, so they can set the terms of the contract clearly and also support you through the entire process.
New builds in great areas
One of the best parts about shared ownership is the variety of homes to choose from and the number of areas you can settle down in. From shared ownership homes in West London to shared ownership apartments in Medway, whether you’re a big family or just a single person, shared ownership offers plenty to its residents. These homes are also nearly all new builds so you don’t have to worry about making any repairs or alterations when you move in. With a great variety and something to suit everyone’s circumstances, shared ownership is flexible and affordable with plenty of benefits.