What to expect when buying a Shared Ownership home
Shared Ownership is a great option for people put off by sky-high house prices. But before you get too carried away, here are a few things to expect before buying a Shared Ownership home
If you are currently renting a tiny flat that is draining your life savings, you might think your dreams of home ownership are out of reach. But don’t give up hope just yet - Shared Ownership could be the end to your home-buying woes.
Making the home-buying process smoother and more affordable, Shared Ownership is a great option for people put off by sky-high house prices. But before you get too carried away, here are a few things to expect before buying a Shared Ownership home:
It’s not like buying a full property
Okay, so this is fairly obvious, but buying through Shared Ownership means you won’t need to pay for all of the property. As the name suggests, Shared Ownership involves buying a share of your dream home, while you rent out the part you don’t own.
You’ll still need to pay for the added fees that come with home-buying, but you won’t need to save nearly as much upfront. As you are only buying a share of your home, the deposit you put down is a lot smaller - as little as 10% of the share you are buying!
But you’ll still get to enjoy the benefits of home ownership
While you are only buying a share of your property, that doesn’t mean you’ll miss out on any of the perks of home ownership. You’ll still have the freedom to decorate your home as you wish, throw great dinner parties, and enjoy that cozy feeling of having a home to call your own. What’s more, you’ll be able to enjoy all of this without paying an arm and a leg!
And you’ll be able to own more of your home over time
Shared Ownership starts with owning a share of your home, but the home-buying journey doesn’t end there. Should your financial situation change over time, you’ll eventually have the opportunity to buy even more shares of your property through ‘staircasing’. As well as bringing you closer to 100% ownership, you’ll also be able to reduce the amount of rent you pay.
You’ll mainly get access to new build properties
If you love the idea of unwrapping a brand new home, Shared Ownership is the most affordable way to go about it. Recognising how difficult it is for first-time buyers to find a high-quality home, the scheme is mainly available on stylish new build properties.
New build homes have a ton of benefits, offering a blank slate to decorate your new home, and bringing you the latest in fixtures and appliances. However, Shared Ownership is also available on resale properties. So, if you want something a bit more classic and traditional, you don’t need to worry about being excluded!
However, whilst you do get access to some lovely new builds, there are also some exquisite modern resale properties that may take your fancy! View our resale page here to find out more about these in particular.
The selling process is different
However good your Shared Ownership experience is, there may come a time when you fancy a change of scenery. If you ever need to sell your Shared Ownership home, it’s key that you know a little about the selling process. For example, if you are looking to sell just a share of your property, your housing provider will get the first opportunity to sell it to someone on a Shared Ownership basis.
However, if your housing provider can’t find a buyer, you will then be given the chance to sell your share - provided you have found a buyer who passes the eligibility requirements for Shared Ownership. The process is also slightly different if you own 100% of your home, where you are free to sell your home on the open market!
There are added costs beyond the initial share
Buying a Shared Ownership home might be different from buying a property outright, but you'll still have added costs to think about. As well as the cost of your deposit and rent, you’ll also need to factor in things like surveys, solicitor fees and service charge! These fees are also part of the picture if you decide to buy more shares.
Completely sold on the idea of Shared Ownership? With BE WEST, you can find a perfect home at a price you can afford. With a range of stunning homes for sale in West London, find your dream home today!