It’s a daunting prospect to think about buying a home a student. You’ve no doubt heard about the huge increase in property prices in recent decades and it’s not very difficult to own that first property without a large deposit. However, help is at hand! In this blog we talk about a solution called shared ownership, which could be the perfect solution to help graduates (or any first time buyer for that matter) get on the property ladder.
Shared ownership is a government scheme that aims at accommodating willing buyers who don’t have means to buy property outright. They will be able to purchase with a reduced deposit that ranges between 25-75% of the total value. If you don’t own another property or you are a first-time buyer, then you can buy. Those folks whose household income is between £20,000-90,000 might as well be eligible.
How can one apply?
If you are interested in applying for shared ownership your eligibility will be accessed at the individual level; alongside the following requirements:
Applicants who live within the area are usually given the priority. This is strategically set for any development.
For Property inside London, you will be allowed to apply if your annual household income of up to £90,000 while for those outside your yearly income should amount to £80,000 unless if you have a larger deposit.
The property bought under shared ownership must be purchased as part owner occupier or if it is the only property that you are entitled to ownership.
Who is eligible for shared ownership?
The following are conditions for eligibility:
• You are eligible if you are renting a council property.
• If you are renting from a housing association
• If you are a former British armed officer for the past two years or you are serving military personnel.
• First-time buyers are also eligible
How does it work?
For a shared ownership, a portion of your property is owned, and then you will be required to pay the reduced rent to the housing organisation who will own the remaining part of your property. However, you are eligible for the “staircase “.
Most of the shared ownership property is leasehold which buyers own the lease for a fixed duration. This scheme has made buying a house more affordable and achievable especially if you are a first-time buyer. It reduces the amount of money required to buy a house at full market value.
Why buy through shared ownership?
Buying through a shared ownership guarantees you the following benefits:
If your share is valued at the minimum threshold, you will be exempted from paying stamp duty.
• You are able to buy a more significant property that probably you couldn’t afford at the market value.
• You have an opportunity to build up your share until you fully own the property.
• You have the security of being a leaseholder.
• You will benefit from a financial interview to ascertain that you can afford to prevent you from straining in the future.…