Shared Ownership: Your Path to Home Ownership?
If the dream of owning your first home feels out of reach, Shared Ownership might just be the key to unlocking that door. This government-backed scheme is designed to make home ownership more accessible, but is it the right choice for you? Let’s delve into what Shared Ownership entails and whether it suits your circumstances.
What Is Shared Ownership?
Shared Ownership allows you to purchase a percentage of a property—typically between 25% and 75%—while paying rent on the remainder owned by a housing association. Over time, you can increase your ownership share through a process known as ‘staircasing’.
Who Is It For?
This scheme is ideal for those who can’t afford to buy a home outright but can manage a smaller mortgage alongside rent. It’s particularly popular with first-time buyers, single-income households, and those aiming to live in pricier areas.
The Pros:
- Lower Entry Costs: Smaller deposits and mortgages make it more affordable initially.
- Step-by-Step Ownership: Increase your property share as your finances improve.
- Modern Homes: Often new builds with energy-efficient features and modern layouts.
The Cons:
- Rent and Charges: Rent on the unowned portion and service charges if it’s a leasehold.
- Limited Control: Significant property changes may need approval.
- Selling Restrictions: Housing associations often have the right to find a buyer first.
Is It Right for You?
Shared Ownership can be an excellent stepping stone towards full home ownership. However, it’s crucial to understand the terms and consider whether it aligns with your long-term goals. If you’re pondering your next move, we at Burnett’s are here to guide you through the process, ensuring you make the best decision for your future.
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