Shared Ownership – the Pros and Cons

Dawn Sandoval Business WomanProperty ownership has become increasing more difficult over the last couple of decades and what was once seen as a given by the older generations amongst us now seems like an impossible dream for the eager twenty and thirty somethings who are desperate to become homeowners. With that said many are now exploring other avenues in an attempt to fulfil that dream which is why Shared Ownership opportunities have become increasingly more popular.  Like anything the scheme has both good and bad considerations. For starters you require a much smaller deposit and mortgage than if you bought outright. Being able to buy a larger property than you would otherwise be able to afford. Avoiding stamp duty if the proportion of the home you are buying is less than the lowest stamp duty threshold and being able to buy more shares until you own the property outright, known as staircasing. But consider also the darker sides of the scheme. For instance, as well as the mortgage, having to pay rent to the housing association and service charges. If you decide to sell, the buyers will need to fit with the shared ownership scheme criteria. And later if you own 100% and wish to sell, the housing association may have first refusal for the first 21 years. Also, if you wish to rent the property there maybe restrictions limiting this. So certainly, it’s worth considering and could potentially be the perfect solution for some, just make sure you do your homework first before making that commitment.

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