Who owns a shared ownership property?
Shared Ownership gives first time buyers and those that do not currently own a home the opportunity to purchase a share in a new build or resales property. The purchaser pays a mortgage on the share they own, and pays rent to a housing association on the remaining share.
What does 25 percent shared ownership mean?
What is shared ownership? Shared ownership schemes allow buyers who meet the eligibility criteria to secure a mortgage to buy a stake (usually between 25% and 75%) in a property, while paying rent on the remaining share to the housing association or private developer that own the building.
How many people can share ownership of a house?
A property can be owned by one person or jointly by more than one person. If you are unsure whether you jointly own or who owns a property you should always check. The way you do this depends upon whether the property is registered or unregistered.
How does shared property ownership work?
Also referred to as part buy/part rent, Shared Ownership allows buyers to purchase a share of a home – usually between 25% and 75%. Purchasers will pay a mortgage on the share that they own, and a below-market-value rent on the remainder to a housing association, along with any service charge and ground rent.
Is it worth Staircasing shared ownership?
No. You don’t have to staircase and increase your shares if you don’t want to. In 2018 a study by housing association Aster found that only 10% of those in shared ownership chose to staircase. Many find the hassle and financial costs of doing so outweigh the benefits.
Why is shared ownership a bad idea?
Unlike full owners of leasehold properties who are unhappy with the firm running their block, shared owners cannot exercise the “right to manage” their building – it will always be run by the housing association. Another downside is that you could potentially lose your property if you fall behind on rent payments.
Is shared ownership worth it 2021?
However, the experts have stated that shared ownership is still a good decision in 2021. Ms Mitchell added: “Shared ownership is a great way for first time buyers to get onto the property ladder and a way of taking the steps to own your first home without the need for a hefty deposit upfront.
Is it hard to sell shared ownership?
And according to Ms Nettleton, selling a shared ownership property isn’t as hard as people have been led to believe. “Normally, there is a nomination period where the home is offered to other shared ownership buyers first, but, if one can’t be found it can then be sold on the open market.”