Saturday, June 22, 2024
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Developer’s Doctor: Shared Ownership for First Time Buyers

Meet Melissa Toomey, Director of Sales at Home Reach

Melissa Toomey is Director of Sales at Home Reach, with over 15 years of experience in property sales. She’s dedicated to helping people step onto the property ladder and is a strong advocate for shared ownership. Home Reach boasts one of the largest shared ownership programs in the country, with over 7,000 homes. Their mission is to provide the highest standards of service for a growing community of new homebuyers.

Question

Considering Moving Out? Let’s Explore Shared Ownership

I’ve been living at home with my parents since I graduated from university, and I’m thinking about moving out and getting my own place. I’d been considering renting, but a friend mentioned shared ownership to me, and I’d like to understand the scheme more. I know I’ll need to start saving for a deposit, and I’m not sure how much saving I’ll need to do before I’m in a position to buy. Could you offer any advice?

Answer

Shared Ownership: A Path to Your Own Home

Shared ownership is an excellent choice for first time buyers like you. This Government-backed scheme is designed to make homeownership more accessible. Eligible first time buyers can purchase a portion of the property, up to 75%, with deposits starting from just 5% of the share you buy with Home Reach. To illustrate, for a property with a market value of £300,000 and an initial purchase share of 50%, you’d need only a £7,500 deposit.

How Shared Ownership Works

Shared owners pay a mortgage on the share they own and rent on the portion they don’t own from a housing provider, like Home Reach. Over time, you can increase your share through a process called staircasing. As you purchase more shares, the amount of rent paid decreases, and you contribute more to your mortgage. Eventually, when you own the property outright, you’ll pay no rent – just the monthly mortgage and relevant service charges.

Eligibility Criteria

Keep in mind that there are eligibility criteria for shared ownership. It’s important to understand the requirements and make sure you qualify.

First Time Buyer is an exciting bi-monthly glossy which takes a stylish and comprehensive look at all the options available, setting them out in an entertaining and informative way, and helping potential customers navigate their way through what is often a daunting and complex process. We dispel the myths, reinforce the facts and arm the reader with the tools necessary to make their homeownership dreams a reality.

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