subject: Shared Ownership Offers Affordable Housing Options [print this page] Shared ownership has given people the opportunity to live in affordable housing with the potential to own their home in the future. The scheme is not a 'get rich quick' offer which anyone can take advantage of, but it is a great alternative to those who want to own their own home but can't make the financial obligations needed to buy a property in the usual manner.
To begin with anyone wishing to pursue a shared ownership opportunity will have to register with a local HomeBuy agent and a Housing Association. They will then have to meet the qualifying criteria and be able to meet the terms and conditions of the rent to buy lease. However, rather than the typical amounts needed to qualify shared ownership is specifically designed for those who have a household income of less than 60,000 annually.
Basically the scheme works in the following manner:
A financial share of the property is bought by the applicant, who then pays a reduced amount of rent on the remaining shares, which means that shared ownership can work out to be a more cost effective method than purely renting.
The percentage of shares you buy and rent will vary according to individual needs. The scheme also allows for further shares to be bought with the potential outcome of owning the property outright. If this option is taken you will have the same responsibilities as anyone else who owns their own property.
Anyone who already owns a property is not eligible to enter the scheme. The scheme has been devised specifically to help those who may not be able to get onto the housing ladder.
The amount of shares you buy are usually funded by a mortgage in the same manner as other home owners.
The scheme enables you to buy a home without having to take on-board all of the financial responsibilities on your own.
Couples or up to four other people who wish to become owner-occupiers with can apply, however, each person does have to meet the eligibility criteria.
Registration with both a HomeBuy agent and a Housing Association is required by anyone wishing to apply.
Under the shared ownership agreement you'll be given a lease, which is usually for 99 years, this entitles you to live in the property as an owner-occupier, plus gives you the opportunity to more shares if you wish.
You can sell your home should your personal circumstances change, as set out in the terms and conditions of the agreement.
Shared ownership is a great way to live as an owner-occupier, enabling you to take a vested interest in your home with the realistic possibility of becoming the outright owner should you so wish.
Finding affordable housing has been made easy with shared ownership schemes, providing you the opportunity to buy your own home with a little help along the way. You may even find that you'll pay less per month than renting, as the rent on the shares you don't buy will be subsidised making shared ownership an affordable housing choice.
