You’ve been thinking about applying for a Shared Ownership property and the scheme feels like the right choice … but then you hear some things on the grapevine that have you questioning whether it is the best option for you.
We’re here to put those worries to rest by giving you the truth behind the myths you’ll have heard about Shared Ownership homes.
- I’ll be sharing my home with someone.
With shared ownership you won’t be sharing your home (well apart from who you choose to share with!). The scheme means you buy a share in a property, paying a mortgage on the share you own and subsidised rent on the rest.
- Shared Ownership is only available to first-time buyers.
Although the scheme is a great way for first-time buyers to get onto the property ladder, it isn’t just available to them. As long as you meet the eligibility criteria and you don’t own another home (if you are in the process of selling yours, that’s ok) you can apply for a shared ownership home.
- It’s more expensive than renting.
In most cases, it’s actually cheaper than renting privately – and you have the added benefit of owning part of your home! With shared ownership, you’ll pay a mortgage on the percentage share you own and a subsidised rent on the remainder.
- You can never actually own your home.
Once you’ve bought your shared ownership property, you’re able to buy more shares when you can afford them – known as staircasing. As you buy more shares, the amount of rent you’ll pay decreases and in most cases you can actually buy 100% of your home.
- You can’t sell a shared ownership home.
When you want to sell your home, you just need to let your housing provider know so they can try and sell it first to anyone on their waiting list. If this time passes and there has been no sale, you can them sell the property privately or through an estate agent.