The solution for many first-time buyers who are priced out of the market is shared ownership. This type of property ownership has become increasingly popular in recent years. It allows people to purchase a percentage of a home (usually between 25% and 75%) and pay rent on the remaining share. The significant advantage of shared ownership is that it can make getting on the property ladder much more affordable.
Shared ownership is available on new homes and some older properties converted into flats or marionettes. In order to be eligible for shared ownership, you will need to be a first-time buyer or previously owned a home that is now unsuitable for your needs. You will also need
Shared ownership could be the answer for those who want to get on the property ladder in Surrey. It’s a cheaper way to buy a home, and with prices in the county some of the highest in the country, it could be just what you’re looking for.
Several shared ownership schemes are available in Surrey, and they all work in slightly different ways. But essentially, you buy a share of a property – typically between 25% and 75% – and pay rent on the rest. You then have the option to buy more shares in the property over time until you own it outright.
Some of the properties under this ownership are:
1-2 Bedroom Houses
With these properties, you will typically own between 25% and 50% of the property, with a minimum deposit of 5%. The starting price for these homes is around £130,000.
3 Bedroom Houses
Prices for three-bedroom homes start at around £155,000. The minimum deposit for these houses is slightly higher, at 10%. You will also usually own a smaller share of the property – between 40% and 60%.
4+ Bedroom Houses
Prices for these properties start at around £250,000. You will usually own between 40% and 60% of the property for larger homes. The minimum deposit is also higher, at 15%.
These are some of the benefits you will enjoy from shared ownership in Surrey:
1) You will have a smaller mortgage
A smaller mortgage means you will have more money available each month, as you will not pay as much interest.
2) You can buy a share of a property that you otherwise couldn’t afford
Shared ownership allows you to buy a home that you may not have been able to purchase outright. This is because you are only responsible for a portion of the mortgage and the rent on the remaining share.
3) You can staircase to 100% ownership
If you’re on a low income, you may be able to buy a larger share of your property through the government’s Help to Buy scheme. This allows you to ‘staircase’ up to 100% ownership, making it more affordable to buy the property outright.
So if you’re looking to get on the property ladder in Surrey, shared ownership could be the answer. With a wide range of properties available and prices to suit all budgets, it’s worth considering. Consult Sage Homes for more information on shared ownership in Surrey and all the affordable housing options they can provide.