What Is The Catch With Shared Ownership?

Can I buy 100 of shared ownership?

Usually once you have lived in your home for a certain period of time as the shared owner (depending on the terms of your lease), you can buy further shares in your property.

If you staircase to 100% you become an outright owner, and you will no longer need to pay rent..

How long does shared ownership take to complete?

How long does it take to complete a shared ownership purchase? On a new build the exchange of contracts takes place within 28 days or less, however completion could be months ahead from that.

Is shared ownership better than help to buy?

Shared Ownership is cheaper in the first instance as the deposit is only on the share of the property you are buying. However, if you are wanting to own your home from the start, Help to Buy may be the option for you if you can afford to pay the mortgage for the whole property rather than a a share.

Can you negotiate the price of a shared ownership property?

Property prices are (in theory) at market value, you just have the option to buy a part of the property which tends to be between 25% and 100%. … If you buy off plan and the market drops, you can’t re-negotiate the price; you’ll still need to pay the higher amount.

What are the negatives of shared ownership?

What are the downsides to shared ownership?Maintenance charges. … No renting allowed. … Buying up increased shares in your property can be expensive. … Restrictions on what you can do. … The risk of negative equity. … Issues around selling your share when moving home. … You don’t have greater protection under shared ownership.

How is rent calculated on shared ownership?

Rent is calculated at 4.5 per cent of the cost of the rented share per annum and the individual is obliged to buy out the rented share within 25 years. … A shared owner may take out another mortgage to buy out the remaining share when the original mortgage is paid off.

What is the minimum income for shared ownership?

The general eligibility criteria for Shared Ownership is as follows: You must be at least 18 years old. Outside of London your annual household income must be less than £80,000. In London, your annual household income must be less than £90,000.

What happens to my shared ownership property when I die?

Succession rights to a shared ownership home If a person with a shared ownership lease dies, the part of the property that is owned passes to the beneficiary of the will. The rented part passes to any successor.

Does rent go up shared ownership?

Does the rent on a Shared Ownership property increase? The rent paid to the Housing Association on the share not owned by you will be reviewed periodically, usually every year, and will be increased in line with any proportionate increase in the Retail Prices Index plus an amount, typically between 0.5% and 2%.

Should I staircase shared ownership?

You do not have to staircase with your shared ownership property. … There aren’t normally any restrictions on your eligibility to staircase. However, you should firstly refer to your lease where the process is set out. We have teamed up with reallymoving.com to offer shared ownership solicitors quotes.

What happens to help to buy after 2021?

There are no changes to the current Help to Buy equity loan scheme which runs to March 2021. The new scheme will run from April 2021 to March 2023. As with the current scheme, under the new scheme, the government will lend buyers up to 20% of the cost of a newly built home, and up to 40% in London.

Is it hard to sell shared ownership?

Selling a Shared Ownership property differs to selling a property on the open market. However, this must be done via the housing association. You will also benefit from our help in marketing and selling your home.

Can you have pets in shared ownership?

In most cases you will need written permission to keep a pet such as a dog or a cat. This permission can be withdrawn at any time if your pet causes any nuisance to your neighbours.

Who pays for repairs on shared ownership?

Responsibility for repairs The scheme is usually responsible for the repair and maintenance of the building, but the costs can be passed on to you and other owners through leasehold service charges. Check your lease if you are unsure who is responsible for maintaining the building.

Do shared ownership properties increase in value?

says the advantages of shared ownership is that “it can enable you to get on to the property ladder more quickly than you might if you wanted to buy a home outright; it may be cheaper than renting; and you can sell a shared ownership property at any time and will benefit from any increase in value it’s seen since you …

What happens after 5 years of help to buy?

Then after five years you’ll start paying interest on the equity loan, until you pay it back. If you don’t repay your equity loan within five years, you’ll start being charged interest on it.

Can I move from one shared ownership to another?

Yes, you can sell your shared ownership home at any time to: buy another shared ownership home. buy another home outright. move elsewhere.

Can you make a profit on shared ownership?

As a home owner you can sell your Shared Ownership home like any other home. However, there are restrictions on the sale of these properties if you haven’t staircased to 100% ownership. … In either case, the price will be no more than the current market value of your share in the property.

Is shared ownership a con?

Staircasing is a con So you can’t ever really fully own this property. Furthermore, every time you try to buy even a percent more, you pay solicitors fees both for yourself and the housing association. In addition to this, it’s always going to be a leasehold property.

Can you decorate shared ownership?

Can I decorate my Shared Ownership home? You are free to decorate your Shared Ownership property as you wish, however, the housing association will not contribute to decorative improvements.