Myth Busting: The Truth Behind Shared Ownership with Home Reach

At Home Reach, we know that taking your first steps onto the property ladder can come with a lot of questions.

To help our customers understand how Shared Ownership might work for them, we’ve picked out some of the most common myths around this alternative route to the housing ladder.

 

Myth 1: Shared Ownership comes with a high service charge

Service charges apply to all leasehold apartments, not just Shared Ownership apartments. However, many houses have no service charge.  Around 80% of Home Reach properties are houses, not apartments, which means that the vast majority of our homes have no service charge.

When service charges do apply, we clearly outline these from the start. Service charges are there to pay towards services and amenities provided in shared areas such as building insurance, communal lighting and maintenance.

 

Myth 2: You can only use a preferred lender for Shared Ownership, who may push certain products

Choosing a mortgage is a big decision, and you want to feel confident that you’re getting impartial advice.

At Heylo, we work with a panel of over 25 independent mortgage advisers. This means you’re not limited to one or two options, and there’s no bias towards Home Reach. You get to choose from a range of trusted professionals to find what works best for you. While we recommend you use someone from our panel, who will understand Shared Ownership, you are free to use other advisors if you choose.

 

Myth 3: Shared Ownership homes are all new builds and poor quality

At Home Reach, we partner with top-rated, reputable housebuilders, and our due diligence process is one of our biggest priorities. That means we’re selective about who we work with – and it shows in the quality of our homes. Our partners are trusted names in the industry who deliver great homes people love living in. Homes come with a 10-year NHBC warranty – so in the unlikely event something does go wrong, you’re covered.

 

Myth 4: You won’t make a profit when you sell a Shared Ownership home

Another widely reported myth that can put buyers off, but this isn’t the reality. When you sell, you benefit from any increase in the value of the home, just like with full ownership.

For example, if you buy a 25% share of a £100,000 home, your share is worth £25,000. If the home’s value goes up to £125,000, your 25% share is now worth £31,250. That’s a profit of £6,250.

 

A final fact you might like to know...

Heylo, the provider behind Home Reach, has a 4.6-star rating on Trustpilot – and 83% of those reviews are 5 stars. That’s real feedback from people who’ve made their move with us, and are now happily living in their own homes.

There are many other misconceptions surrounding Shared Ownership – from people thinking that the product is limited only to first time buyers, that they can’t have a pet in a Shared Ownership home, or aren’t able to redecorate their property. In fact, Shared Ownership is available to buyers who don’t own another property, most Home Reach homes are now pet friendly and customers are free to decorate their home – requiring permission only for structural changes.