Getting onto the property ladder is as hard as ever. If you are living in rented accommodation, simply covering the everyday costs of living can make saving for a minimum 5% deposit to buy a house or flat extremely tricky. The good news is that the Shared Ownership scheme can help you buy a home of your own.
Shared Ownership schemes have been around for a long time. How it works is that you buy a share of your new home – typically 40% and pay rent on the rest. You will still need at least a 5% deposit, but the deposit is based upon the share of the property you are buying rather than the full property value. When your finances allow you have the option of buying a greater share of the property. In some cases you can even buy it outright. The scheme can be used by single people, couples, family members and friends.
One myth to break is that these properties can only be found in areas you really would not want to live in. This simply is not the case. For a number of years, most new build developments in the UK have been required to provide a number of affordable houses on their site. This has made Shared Ownership available is some very desirable parts of the country. When the initial owners come to sell the property they sell their share. It therefore remains a shared ownership property, with you buying their share. So you can either buy a new Shared Ownership property or one that is older.
Dupree Mortgage Solutions have an in depth knowledge of Shared Ownership and banks and building societies that will lend on these homes.