Whether you’re looking to buy your first home or get back on the property ladder after previously owning your own house, a shared ownership scheme could be the stepping stone you need.
Many people won’t know about shared ownership schemes until they begin their research into finding a new home. No matter how you go about finding a house, it’s good to be informed and to practice due diligence when weighing up the pros and cons of each option. After all, for many of us, buying a home is one of the most expensive purchases we’ll ever make.
So what is shared ownership, and could it be the best option for you when it comes to finding the ideal new home?
What is shared ownership?
Shared ownership schemes are usually run by a housing association. They entail purchasing a share in a new-build property with flexible share options up to 75%, then paying rent on the unsold share. If you wish to increase your share (known as staircasing), you can do so anytime, although you must buy an additional minimum of 10 per cent. Staircasing reduces the sum of your monthly rent payments. Eventually, if you so wish, you may buy 100 per cent of the property. And remember, with Home Reach, you can partake in a part buy - part rent scheme with a deposit as small as five per cent!
How could I benefit from shared ownership?
Home Reach’s shared ownership homes are new builds, replete with modern fittings and requiring little to no work and maintenance. If you are the property’s first shared owner then it will probably come with a warranty, meaning repairs are covered by us here at heylo housing. Furthermore, unlike with renting, shared ownership affords you the capacity to decorate and make other home improvements as you wish!
More generally, of course, partaking in a shared ownership scheme is like owning your own home but without the same level of financial commitment. You may also be able to move into a larger and overall more desirable house than you would if you were to go down the traditional mortgage path.
Home Reach grant our shared owners the ability to sell and move anytime, which is especially welcome news when you consider that all our houses benefit from market-wide rises in property prices. Lastly, shared ownership with Home Reach affords you a lease of 125 years. This effectively enables you to live in the property indefinitely, as if you had bought it outright!
How do I know if I’m eligible for shared ownership?
Home Reach have a number of criteria you’ll need to meet if you’d like to partake in our shared ownership scheme.
Firstly, you’ll need to be assessed and accepted by a Help to Buy agent. Home Reach will then require both your letter of acceptance and registration number (if applicable). We will then consider your financial circumstances. If you live in England or Wales, you will be eligible for a Home Reach property if your household income does not exceed £80,000 per annum (or £90,000 per annum if you live in London). You’ll also need to be able to afford a deposit worth at least five per cent of the share value of the property and have a good credit history.
We accept not only first-time buyers but also previous homeowners and people who currently inhabit another shared ownership property and can’t afford to buy a home outright. Home Reach also ask that whichever one of our properties you wish to invest in will be your sole home. Finally, we will require you to demonstrate that you can indeed sustainably share value and pay the monthly costs.
Some shared ownership schemes provide additional support for key workers. The government-run Help to Buy schemes do offer this support but only for members of the Armed Forces. Heylo housing, on the other hand, provide support not only for military personnel but also for nurses, teachers and emergency workers.
Home Reach homes are both desirable and affordable
If you’re longing to own your own home but taking out an entire mortgage is just not feasible at this point in your life, shared ownership with us could be the answer you’ve been seeking.
Home Reach is a shared ownership scheme on new builds offered by heylo housing, one of the UK’s premier home ownership programmes. Here at Home Reach, we believe that home ownership shouldn’t be shrouded in jargon, exclusivity and hidden fees. That’s why there are developments across England, offering Home Reach and are ready to help you take proactive steps to actually getting a foot on the property ladder. Get in touch with Home Reach today and find the house you never thought you’d call home.