Shared Ownership is an affordable way of taking that first step onto the property ladder. Rather than going down the traditional path of taking out an entire mortgage, Shared Ownership allows you to buy a percentage in a new property and pay a subsidised rent on the outstanding share. Your initial share will generally be anywhere between 25–75 per cent of the property’s value, with the option of increasing your share (and therefore paying less rent) in the future* (Depending on affordability and starting shares).
Shared Ownership is flexible and affordable—but could it be right for you? Today we delve into seven reasons why it could well be the perfect way for you to enter into the property market—while keeping within your financial comfort zone.
1) You can put your stamp on the place
They say you know you’ve found your new home when you’ve begun decorating it in your head before you’ve even signed for the place! Habitual renters will be well accustomed to the fact that they are generally prohibited from decorating or otherwise making home improvements to their house. Not so with Shared Ownership, which allows you to make the changes you desire—without a landlord breathing down your neck in the process.
2) An investment for the future
Partaking in a Shared Ownership scheme means you’re not spending as much of your hard-earned money on rent which you will never see a return on. By actually investing money in a property that is partly yours, you build equity by paying off your mortgage, no matter how large or small your share.
3) Your social life won’t suffer
We’ve all been there at one point or another: you start saving for a house deposit, only for everyone around you—sometimes especially your parents—telling you to stay in on a Friday night, give up on regular evenings out and save the pennies. But with Home Reach, the deposit you need to save is only going toward the percentage of the property you are buying, not toward the entire house, meaning you’re free to still enjoy a night out with your mates whenever the mood takes you—without losing out on your dream home.
4) Improve your credit score
Becoming a homeowner through a Shared Ownership scheme and paying off your mortgage and rent in a timely manner every month can be immensely beneficial for your credit profile. A good credit score can be invaluable down the line, not only because it can help you attract more competitive interest rates but also because it makes you more attractive to loan providers when you’re looking to buy a car, start a business or even move on to a bigger or pricier house.
5) A blank canvas
Home Reach is on new builds, complete with modern fittings and high-quality fixtures. If you’re the first person to live in the property then it will generally come with a warranty, meaning that we as your landlord will cover the costs of repairing or replacing items whose malfunctioning was not your fault.
6) It’s your own home!
If, like most people, you’ve lived in shared accommodation at any point in your life, be that a house share, or even just the family home, you’ll be all too aware of the trials and tribulations that come with living with others (some of whom you’d rather not be in close proximity to at the best of times). But with Shared Ownership, there’s no more avoiding creaky floorboards when you’re craving toast at 1am, no more begrudgingly washing up your housemates’ dishes and no more qualms about wandering around in a towel, because you choose who lives in your space – if anyone!
7) Adulting to the max!
Home ownership certainly isn’t everyone’s goal in life, but if you’re looking to settle down and build a base and a home in one place for the long term then Shared Ownership is an affordable way of doing so. The process can be daunting, especially for first-time buyers, but here at Home Reach, our friendly team will see you right, from finding the perfect property to signing the dotted line. The journey might look arduous, but we’ll be on hand the entire way to guide, advise and assist.
That’s why developers across the UK are ready to help you take proactive steps to actually getting a foot on the property ladder. Get in touch with us today and find the house you never thought you’d call home.