You cannot own another home. Shared Ownership purchasers are often first time buyers but if you do already own another property (either in the UK or abroad), you must be in the process of selling it. You should not be able to afford to buy a home suitable for your housing needs on the open market.
Can I turn my house into shared ownership?
Shared ownership is only available to first-time buyers, those who’ve previously owned a home but can’t afford to buy one now, and existing shared ownership homeowners who want to move house. Your household income must be less than £80,000 if you live outside London or £90,000 if you’re living in London.
Why shared ownership is a bad idea?
What are the downsides to shared ownership? Hopefully the monthly mortgage repayments, plus rent will still make shared ownership far cheaper than buying a property outright. … Be aware that even though you own a share of the property, say 30%, you are responsible for paying the full maintenance and repair costs.
Is shared ownership a good idea 2021?
However, the experts have stated that shared ownership is still a good decision in 2021. Ms Mitchell added: “Shared ownership is a great way for first time buyers to get onto the property ladder and a way of taking the steps to own your first home without the need for a hefty deposit upfront.
Is it hard to sell shared ownership?
And according to Ms Nettleton, selling a shared ownership property isn’t as hard as people have been led to believe. … “Normally, there is a nomination period where the home is offered to other shared ownership buyers first, but, if one can’t be found it can then be sold on the open market.”
Do you lose money on shared ownership?
Unlike full owners of leasehold properties who are unhappy with the firm running their block, shared owners cannot exercise the “right to manage” their building – it will always be run by the housing association. Another downside is that you could potentially lose your property if you fall behind on rent payments.
Can I buy 100 of shared ownership?
You can gain full ownership of your Shared Ownership property through a process called ‘staircasing’. Once you’ve bought your initial stake in your home you can staircase to 100% Ownership in batches of 10% or larger.
Is it worth Staircasing shared ownership?
No. You don’t have to staircase and increase your shares if you don’t want to. In 2018 a study by housing association Aster found that only 10% of those in shared ownership chose to staircase. Many find the hassle and financial costs of doing so outweigh the benefits.
Is Shared Ownership a con?
LTF has always deemed shared ownership to be a con – an ‘affordable’ tenure that is affordable only to a better off minority. London Living Rent is little better. Ambitious targets for new social rented housing are what is needed under the draft new London Plan, and are sadly lacking.
What is the minimum income for Shared Ownership?
The general eligibility criteria for Shared Ownership is as follows: You must be at least 18 years old. Outside of London your annual household income must be less than £80,000. In London, your annual household income must be less than £90,000.
What’s better Shared Ownership or help to buy?
The main difference is that you would pay rent and mortgage payments with a shared ownership property whereas you would only pay mortgage payments on a help to buy property. Shared Ownership is cheaper in the first instance as the deposit is only on the share of the property you are buying.