A question that the Accent Housing team is asked quite often is what salary does an individual need for shared ownership.
And our answer is that shared ownership eligibility is based upon your household income overall among other criteria.
In this Accent Housing article, we’re going to tell you a little about shared ownership and what makes someone eligible for the shared ownership scheme. We’ll also cover finding shared ownership homes with Accent Housing.
What is Shared Ownership?
The shared ownership scheme is a government initiative set up for individuals who are unable to afford a property at full market value. This scheme is a mix of buying and renting, so the buyer will buy a share in a property and then pay rent on whatever remains.
Usually the money required for a deposit is much less than compared to buying a home outright. Plus, the buyer only needs to pay mortgage on the share they’re purchasing.
Initially, the mortgage the buyer pays is between 25%-75% of the share they purchased and they will pay the remaining share to Accent as rent. It allows buyers to purchase shares in new builds or resale properties, giving them the chance to get a foot on the property ladder.
The purchaser also has the option to buy additional shares, if it is something they want to do, until they own 100%. This process is known as ‘staircasing’. In the instance where the purchaser goes on to own 100%, they would no longer pay rent – just mortgage.
How Do You Qualify For The Shared Ownership Scheme?
Sometimes the criteria for shared ownership eligibility can get mixed up or confused so we’re here to set straight some of those rules:
- Your household must earn £80,000 or less per year. And if you’re based in London, your household must earn £90,000 or less per year.
- A deposit, usually between 5%-10%, of the share you are buying is required.
- This must be your only home. That will make you either a first-time buyer or someone who no longer owns a home and can’t afford to buy one now.
- You’re not able to purchase a shared ownership home if you can buy a similar home outright.
- If you are in rent arrears or don’t have good credit history, you will not be able to purchase a shared ownership property.
Why Buy A Shared Ownership Home?
For individuals who cannot afford to buy a home outright, the shared ownership scheme may be the perfect solution. Especially if they would like to own their own home.
Shared ownership schemes are more affordable because:
- You can start by purchasing a share of just 25%.
- Rent is affordable – it is less than the rate that is charged on the open market.
- The deposit you need for a mortgage can be as small as 5%. This is because the deposit is for the share you are buying rather than the whole property.
Shared Ownership Homes Through Accent Housing
All our available homes for sale can be viewed on homemadehomes.com.
Homemade is an experienced property sales team within Accent Housing that offers both new and resale shared ownership properties. From Surrey to Yorkshire, we have shared ownership homes across the country.
We’ve been providing homes since 1966 because we believe that everyone deserves the right to a safe and warm place to live.
Accent has helped hundreds of people fulfil their ambition of being homeowners. Find your next home with Accent Housing – get in touch, we would love to help you, too.