THE GUIDE TO // Shared Ownership
Who can apply?
What are the costs involved?
If you are registered with Help to Buy South, you may already be eligible for Shared Ownership. You must:
You will need to be able to raise a mortgage to buy at least the minimum share available, as well as having a mortgage deposit available. This may be 5-10% of the value of the share you are purchasing. However, remember you will be expected to purchase as much of the property that is affordable for you.
• Be a first time buyer or an existing home owner whose household needs have changed but can’t afford to buy another, more suitable home • Have a household income of less than £60,000 • Have savings of approximately £2,500 for fees, as well as a deposit if you are buying a home Applicants will be prioritised for a property as and when they apply for a specific home or development. This is done by the individual Housing Association you are hoping to buy from. Priority will be given to: • Council and housing association tenants • Serving military personnel • Applicants given a high priority by the Local Authority. For example this may be families, or people living or working in the area This may vary from development to development, so contact the Housing Association directly for more information when applying. If you already own your own home, including existing Shared Owners, and you need to purchase a larger home but are unable to because of financial constraints, you may be eligible. In this instance you will need to demonstrate that you are in housing need and have the support of your local authority and/or have sold your home prior to applying. To apply for a specific Shared Ownership home or development, you must first be registered with your Help to Buy Agent.
22 |
Other costs to consider include: • Reservation fee This will be taken off the total purchase price • Mortgage arrangement fees This will vary depending on your financial advisor and mortgage lender • Valuation fee This is a requirement of your mortgage application • Legal fees You may be given details of recommended solicitors • Monthly service charges Again, these will vary from property to property