A question we often hear from people is if shared ownership is better than buying. And what we can tell you is this: it really depends on your circumstances.
Shared ownership provides buyers the chance purchase a share in the property when they can’t afford the property’s full value. Buying means the resident doesn't have to pay a rent.
In this Accent blog, we’ll outline shared ownership and buying with Accent Housing.
What Is Shared Ownership?
Shared ownership is an affordable option for those who are on low income.
For shared ownership properties, the buyer will pay a mortgage on the share that they own. They will pay rent on the remainder of the share to a housing association. Typically, a buyer will purchase a share of the home that’s anywhere from 25% to 75% of the price.
Over time, if they choose to, the shareholder can purchase a higher share during their time in the property. This process is known as staircasing. In many cases, residents end up staircasing to 100% which means they no longer have to pay rent to a housing association. At this stage, they’ll only have a mortgage payment along with service fees and ground rent.
Am I Eligible For The Shared Ownership Scheme?
Of course, there are some eligibility criteria that comes with the shared ownership scheme. There’s many thoughts around eligibility, a common one being that it’s only for first-time buyers or keyworkers.
We’re here to tell you that this isn’t true. These are some of the criteria:
- You will need a deposit – Typically, a deposit between 5%-10% of the share you’re buying is acceptable.
- If you are in a position to buy a home outright, you won’t be able to purchase a shared ownership home.
- It must be your only home – That means you might be a first-time buyer or a previous homeowner who can no longer afford to buy a new one. And when we say previous homeowner, we mean someone who used to own a home but no longer does.
- Your household earns £80,000 a year or less. And if you’re in London, £90,000 or less.
Is Shared Ownership Better Than Buying?
As we mentioned, it really depends on circumstances.
But shared ownership is cheaper. The only part of the property you buy is the deposit you put down. So for anyone on a lower income, it’s quite an ideal option.
Plus, shared ownership homes are available in plenty of areas so if you don’t want to move far, you don’t have to. And with their affordability, it will take less time for you to save up the deposit.
Therefore, you don’t have to worry about someone snatching your dream home off the market.
Can I Buy My Accent Home?
Depending on your circumstances and your tenancy with us, it may be possible for you to buy the Accent home that you rent!
However, even if you meet the eligibility criteria and your tenancy allows it, Accent still has a right to reserve purchase. Accent taking action against you, or having a home specially adapted to your needs are examples of cases where we can withhold your right to buy.
The Right Choice
Buying is a massive decision – not everyone chooses to buy their home.
But if you’re thinking of buying, you should reach out for advice from your bank or building society. It’s a big commitment to make and being well informed is the best course of action.
Buying a house may have legal fees as well as the outright cost, and owning a house comes with service charges and utility bills. It’s important to keep these things in mind when coming to a decision. And if you need help, you can speak to us at Accent and we’ll explain everything to you.
Shared Ownership Homes With Accent
If you are thinking about buying a home with us, reach out! We can help you through the process.
All of our available shared ownership homes are available on homemadehomes.com. Homemade is an experience property sales team within Accent. We offer both new and resale shared ownership homes.
Across the country, from Surrey to Yorkshire, we have helped many people fulfil their ambition of being homeowners with our shared ownership properties.