6 minute read
Shared Ownership: an affordable route to home ownership
Struggling to get on the property ladder? Don’t worry, you’re not alone. Between the cost-of-living crisis, stagnant wages, and soaring house prices, a staggering four in ten buyers (41%) have been forced to push back their home buying dream by an average of four years, according to research by Lloyds.
Fortunately, that doesn’t have to be the case! Even amid the current economic climate, Shared Ownership provides an affordable route onto the property ladder for those who have been priced out of the market.
Read on to find out how Shared Ownership with Sovereign Network Group (SNG) could unlock your home buying potential.
What is Shared Ownership?
Sometimes known as ‘part buy, part rent’, Shared Ownership is a government-backed scheme that provides buyers with an opportunity to buy a good quality, local home without the need for a large deposit or the mortgage that goes with it.
How does it work?
You buy a share in your home that’s right for you. This is typically between 25 and 40 per cent of the home’s full market value. You’ll then pay a reduced rent on the remaining share and a monthly service charge towards the upkeep of communal areas.
You’ll also be free to buy more shares in your home as and when your finances allow through a process called “Staircasing”, meaning you’ll own more and pay less rent.
Do I Qualify for Shared Ownership?
You could be eligible for Shared
Ownership if:
• You are over the age of 18
• Your household income is less than £80,000 (or £90,000 in London)
• You don’t already own a home at the time of buying your Shared Ownership property
Benefits of Shared Ownership
Low deposits
Saving for a deposit can be a difficult task, but with Shared Ownership you’ll typically only need a deposit equal to 5% of your share value, providing a more achievable savings goal.
For example, buyers at Arc, SNG’s development in Wembley, will only need a £4,469 deposit for a one bedroom apartment, compared to an astounding £31,450 (10%) deposit required for a similar full ownership apartment in Wembley, according to Zoopla. Prices at Arc start from £89,375 (based on buying a 25% share).
What’s more, you can currently get £500 towards legal fees, a £500 Love2shop voucher and £500 towards a local gym membership*.
Lower monthly costs
One of the biggest misconceptions around Shared Ownership is that it’s more expensive than renting.
Whilst both living options have their advantages, your monthly payments will often be cheaper through Shared Ownership than if you were to rent privately.
For instance, buying a brand new, Shared Ownership apartment at SNG’s Knights Quarter development in Winchester (Hampshire) could save you up to £279 per month compared to renting a similar sized property in the area^. Plus, you get the added benefit of building equity in a newly built home.
Plus, you can receive up to £6,000‡ cashback on the homes at Knights Quarter. You are free to save or spend the incentive as you choose, from furnishing your home, to exploring nearby attractions, or even covering your monthly expenses.
Prices at Knights Quarter start from £68,750, with deposits from just £3,438 (based on buying a 25% share).
Cheaper energy bills
In the current economic climate, every penny counts, and the need for an energy efficient home has never been so important.
Benefitting from the latest technologies, most Shared Ownership properties achieve an energy performance rating of A or B, something less than 5% of older properties achieve according to government data.
This difference in energy performance could equate to a saving of up to £184 per month on your energy costs, according to data from The Home Builders Federation!
Well-located homes
Beyond the financial benefits, Shared Ownership provides affordable housing in highly sought-after areas, allowing you and your loved ones to benefit from the best that your town or city has to offer.
Take Willowbrook Park in Didcot (Oxfordshire), for example - located near the stunning Oxfordshire countryside, and less than a mile from Didcot town centre, these upcoming two and three bedroom homes will have a wealth of retail, leisure, shopping, and education amenities on their doorstep.
There’s also a reliable network of bus routes throughout the town, with the A34 also nearby, offering easy access to both the M4 and M40. Plus, Didcot Parkway train station provides regular services to Oxford in 15 minutes, Reading in 20 minutes and London Paddington in 40 minutes**.
Strong communities
SNG is committed to helping its residents thrive. From thoughtfully designed green spaces to appealing communal areas, SNG strives to create vibrant neighbourhoods where residents can forge meaningful relationships and enjoy a high quality of life.
“The communal gardens have been a great place to meet people – my wife has already made friends with some of the neighbours, and my kids are making friends too, it’s great to see my family so happy,” commented Hamzah, a primary school teacher and SNG shared owner.
SNG does not just build affordable homes, it also invests in local communities and the people who live there. SNG’s #iWill Fund programme has awarded grants to organisations across the South to help deliver projects including community cafes, school holiday programmes, and environmental projects. So far, the programme has delivered £8.79m of social value to local communities and enabled young people to achieve 535 accreditations and training outcomes.
For more information on SNG’s homes across the South of England, visit sovereignliving.org.uk or networkhomessales.co.uk.
*T&Cs apply. £500 towards legal fees apply if you are using a panel solicitor chosen by SNG. £500 cashback for gym membership will be received upon completion of sale.
^Shared Ownership figures based on a 25% share value. Calculated at a 95% mortgage value with a 5% deposit requirement, and mortgage interest rate of 5.5% over 30 years. Average rent for similar sized properties in Winchester according to Home.co.uk
‡Paid upon completion of sale. T&Cs apply. For more information, please speak to a member of our sales team.
**Travel times are based on data from google.co.uk and are approximate only.
Sources
The Lloyds research can be found here. The Zoopla research can be found here. The UK Government data can be found here. The Home Builders Federation data can be found here.
