Shared Ownership is a brilliant way for buyers to take their first step onto the property ladder, or even to upsize or relocate. The scheme allows you to buy a share of a property, meaning that you only need a deposit and mortgage for your share price - rather than the full amount. You can also buy your home with a 5% deposit!
Sounds like a great way to step on the property ladder, right? Despite the opportunity it gives buyers who need a helping hand onto the property ladder, there are a range of myths surrounding the scheme which you may have heard when researching the scheme. We're here to bust the myths and tell you the real truths about Shared Ownership
You don't have to share your home with anyone else!
A common misconception is that if you wish to buy a house with Shared Ownership, you need to share with someone else, who would own the remaining share.
You’ll be pleased to know this isn’t true at all! When you buy a Shared Ownership property with Space Homes, the remaining share is owned by us. This enables you to buy the share that you can afford, while being able to treat the home as 100% your own. No more sharing your space with housemates - well, except for your family, of course.
You will be able to own your home 100% if you want to
With Shared Ownership, you will initially buy a share of your home - between 25% and 75%. After 1 year, you are then able to purchase more shares when you can afford to. This process is called ‘staircasing’. Eventually, if you want to, you can buy the full 100% share of your property. While you’re saving up to increase your shares, you’ll be able to make your space your own; decorate how you want, get a pet, put pictures up. It’s your home!
You can use Shared Ownership even if you're not a first time buyer
Yes, you read it right! You don't have to be a first time buyer to use Shared Ownership.
You can use the scheme if you are currently a homeowner or you’ve owned a property in the past. You’ll just need to have an offer on your property in order to be approved for the scheme. It is
against the rules to own an additional property as well as your Shared Ownership property - but, if you’re looking to upsize or relocate, then the scheme is a great way of doing this!
You can use as big a deposit as you like
While being able to purchase with a 5% deposit is a perk of the scheme, you are not limited to this figure. The deposit amount can be any percentage you want. With Shared Ownership, you can even buy your share outright, meaning you don’t need a mortgage! This is perfect for people with a little more money saved up, or those who have sold their house and have some money from the sale.
Is it more expensive than renting?
While it is possible that the monthly cost of Shared Ownership is higher than the rent in your area, often this isn’t the case. As you only take out a mortgage based on your share price and Space Homes charge a below-market rate for the remaining share each month, it often means that you are paying less than you would if you were renting - while offering you a lot more freedom and control!
Shared Ownership is a flexible scheme that enables buyers to make home ownership work for them. If you have anymore questions around the scheme, chat to our team here.