Shared Ownership – how does it work?

10:28 am | Uncategorized | 1st May, 2019

A lot of people’s worry about shared ownership properties, is that they don’t understand the process. Here at Crucible we’re experts in our field and when you choose a shared ownership home we make sure to explain the process from start to finish, so you know how it all works and above all that it’s right for you.  

So, how does it work?

You’ll start by buying a share of your home – usually between 25 -75% – and then will pay a mortgage on the share you own and a subsidised rent on the rest.

Over time, you can increase the share you own and as you do this, your mortgage payments will increase but rent will decrease. And, when you own 100% of your home, you’ll stop paying rent.

The process

  1. Eligibility assessment by the relevant help-to-buy agent
  2. Financial eligibility approval carried out by an independent financial assessor on behalf of Crucible
  3. If the property if complete or a resale then a viewing will take place
  4. If the property is a new build then a reservation fee is paid. On a resale, an offer will be made and proof of funding obtained
  5. Offer accepted and solicitors are then instructed – We can recommend a solicitor if you would like, or if you would like to find one yourself just make sure they are experienced in shared ownership properties.
  6. Conveyancing process and any mortgage applications are processed
  7. Exchange of contracts – this is when the purchase becomes legal
  8. Completion date is agreed
  9. Completion – the money to buy your home is transferred from your solicitor to ours. We’ll then arrange to give you the keys to your new home.