Now more and more individuals in the UK are opting to share home ownership, and some firms say that they are simply overwhelmed with such demand. Help to buy-shared ownership gives you a chance to get a foot on the property ladder by buying a home on a part buy, part rent basis. Recent research has shown that the number of people owning a home has severely dunked across every part of the UK since the early 2000s.
Shared ownership is a scheme that is designed to help individuals get on the property ladder who are unable to do so on the open market. It lets you buy a share of between 25% and 75% of the value of a new home paying a subsidized rent on the remainder. With your bite-sized mortgage in bite-sized rent, your monthly housing costs become more affordable for individuals have opted for such a scheme.
Shared ownerships also provides a lot of other real benefits that may look attractive to individuals such as; it allows you to get on the property ladder soon because you will require a smaller mortgage when you buy a share because you only need to save for a deposit on your share. You can increase the proportion of your home share when you can afford to which will bring your monthly rent payments down. This is also known as ‘staircasing’ in which you can buy a further share in your home and reducing your monthly rent bit by bit. Expert opinion on this issue you may get at HighGate Property Investments Inc.
You are only eligible for the share-ownership scheme as the criteria states:
- If your household earns an income of less than £80,000 a year outside of London, or If your household earns an income of less than £90,000 a year within London
- If you are a first-time buyer, or if you used to own a home but can’t afford to buy one now or are an existing shared owner looking to move.
With the shared-ownership scheme, the outstanding share that is purchased has a maximum limit of 3% regarding rent. This is determined by the value of that share when the home is first sold. Individuals should take into consideration what is required of the scheme before opting for such a choice and should carefully weigh the pros and cons of their decision.