Solving the mystery of shared ownership with Shanly Homes

The term 'Shared Ownership' mystifies a lot of people who are looking to buy a new home. What does it mean? Who can apply? How can it help? If Shared Ownership is a mystery to you, we are here to help! We've answered some common questions about the scheme to help you decide whether it is the right option for you.

What is Shared Ownership?

Shared Ownership is a scheme that blends buying with renting. You are sharing the cost of ownership of your home with a housebuilder (such as Shanly Homes) or the local council, making it a more affordable way to get onto the property ladder, without needing to splash out the full market value in one go. This means you purchase an initial share of the property and pay a portion of rent to the housebuilder on the part of the property you don't own.

Can I buy more shares at a later date?

Absolutely! With Shared Ownership you are able to buy further shares of your home all the way up to 100% and full ownership - known as staircasing. It is a relatively easy process that the Shared Ownership sales team can help you with and it means that you are can purchase further shares of your home as and when you can afford to do so - there is no time limit either!

How much deposit will I need to buy a home using Shared Ownership?

One of the key advantages when purchasing through Shared Ownership is that your deposit is likely to be much lower when compared to buying on the open market. As you are only purchasing a share of your property, you will typically only need to pay a deposit of around 5-10% of the share value. For example, if you were looking to purchase a home with a full market value of £500,000, you may normally expect to pay at least £25,000 as a deposit. However, if you were to purchase a 25% share using Shared Ownership, your deposit could be as low as £6,250!

What are the requirements to be eligible for a Shared Ownership property?

Shared Ownership is often popular with first-time buyers looking to benefit from the lower deposits that are needed, but the scheme is open to a variety of buyers. You need to be over 18 and have a household income below £80,000 (or £90,000 for properties in London).  As the scheme is designed to support those that are unable to buy a home on the open market, you cannot currently own another home or be in the process of selling any other properties.

Can I sell my home if I buy through Shared Ownership?

If you outgrow your home or just fancy relocating, it is possible to sell your Shared Ownership property and even upsize to a bigger Shared Ownership home, you just need to get in contact with your housebuilder . They will then advertise your share to others looking to purchase using Shared Ownership and your property will be sold at the current market value. If you own 100% of your home, then you can sell your property privately.

We currently have two stunning Shared Ownership apartments at Woodleaf Gardens in Hinchley Wood, Surrey. Find out more about this development here:  https://www.shanlypartnership.com/developments/surrey/woodleaf-gardens/?from=search