The mortgage can cover anything between 25% to 75% of the property value, depending on what you can afford. You’ll need a deposit equal to 5-10% of the share you’re buying.
How much do I need to earn to get a shared ownership mortgage?
There is no set minimum income for Shared Ownership – either for single buyers or as a joint household income. Each home will have its own valuation and the housing association will determine the minimum income required for that property to be affordable to people earning under the maximum allowance threshold.
How is shared ownership affordability calculated?
The agency stipulates that a minimum of 25% of an applicant’s net wage and 2.5x their gross income should be used as a minimum towards home ownership. There is also an upper limit of 45% of their net wage and 4.5x their gross salary to ensure long term sustainably.
What is the downside of shared ownership?
What are the disadvantages of Shared Ownership? Because Shared Ownership properties are always leasehold, ground rent may apply and you must pay this in full no matter what size share of the property you own. … Therefore, the price you pay per share will rise with house prices the longer you wait.
Is shared ownership a good idea?
Shared ownership is a great way to get a stake in a property when you can’t afford or can’t borrow enough to buy outright on the open market. There are however common complaints from people in shared ownership schemes.
Can I get shared ownership working 16 hours a week?
In the current system help with the rental element of their payments comes from Housing Benefit (HB) and those working less than 16 hours a week, or not working at all, can get help from Job Seekers Allowance (JSA) or other means-tested benefits with their mortgage interest element as well.
Can I get housing benefit on shared ownership?
You can get Housing Benefit for the rent you pay as part of a shared ownership scheme. You’ll need to ask for a written rental agreement with the organisation running the scheme, if you don’t already have one.
Is there an age limit for shared ownership?
Shared ownership does not mean you share the ownership of the property or have to live with another person. It means you own a share of the property and pay rent on the share you don’t hold to us. … There is no age limit for buying a home using Shared Ownership as long as you are over 18 years of age.
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.”
Who is responsible for repairs in shared ownership?
The housing association which owns part of the property will be responsible for maintaining the structure of the house. If for example the roof on your property needs repairing, this will be down to the housing association. If however you need a wall plastered inside your home, this will be down to you.
Do you pay council tax on shared ownership?
Do you pay council tax on a Shared Ownership property? Yes, just like buying any home, you will need to set up all of your own household bills including council tax.