What is shared ownership?
Shared ownership gives first time buyers and those that do not currently own a home or who have sold their current property 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 whg on the remaining share. Because the purchaser only needs a mortgage for the share they are purchasing, the amount of money required for a deposit is a lot lower when compared to the amount that would be required when purchasing outright.
Are there any eligibility requirements?
Your annual household income must be less than £80,000.
Before a viewing or reservation can be me made, we require an affordability test to be carried out with your permission via Metro Finance to give us an idea of your financial position. You will also need to register with Help to Buy Midlands at www.helptobuymidlands.co.uk/apply-online and provide us with your unique 12-digit reference number.
Unfortunately we cannot sell to home owners, to be able to purchase one of our properties you will need to be sold subject to contract to reserve. We will add your details onto our database and keep us updated if you sell.
What are the costs of buying a shared ownership property?
Just like buying outright the there are extra costs when buying a home. In addition to your deposit you will need money to pay for your solicitors’ fees and mortgage arrangement fees. You’ll need a much smaller deposit than you would if you bought the property outright.
Why buy shared ownership?
You own part of your home rather than paying rent with no return. You’ll need a much smaller deposit than you would if you bought the property outright.
Mortgage and rent isn’t that more expensive?
Shared Ownership is designed to keep both the initial and on going costs of home ownership manageable and affordable. The monthly costs of owning a shared ownership home usually work out less than if you had bought the home outright and in many cases less than renting privately. With shared ownership you only require a mortgage deposit on the share you are buying not the full value of the home making the scheme more appealing in this current climate.
What percentage of the property can I buy?
You can buy a share between 25% and 75% in the first sale. In the future you can buy more shares in the property, which we call “staircasing” we suggest that you staircase in large chunks to prevent large legal fees.
Does shared ownership mean sharing with another person?
Plain and simple… no. You own a share in the home but you are the only occupier of the home, it works in the same way as buying outright.
What happens if I want to sell?
We try to work as much as we can with our customers, so there are several options we will consider. We will either buy your share back off you, we will sell our share with you and sell outright or you can sell your share and we will hold onto ours.
Can I purchase a 100% share straight away?
No, if you can afford 100% you should consider buying outright. You can however staircase to 100% in most cases once you have bought an initial share and your lease will indicate this.
Who is responsible for maintenance and repairs?
As the purchaser you would be responsible for all maintenance and repairs.