Shared Ownership has been around for a number of years and has a proven track record. Often called part-buy/part-rent, the scheme allows for shares of between 25%-75% to be purchased in a property and a subsidised rent to be paid on the balance.
The precise share purchased depends on an individual’s level of affordability and the ability to raise a suitable mortgage. Under this heading, the scheme refers to specific new build properties available through housing associations.
The subsidised rent is initially capped at a maximum of 3% and is calculated on the share of the property retained by the housing association.
For example on a property valued at £150,000 bought on a 50% share the initial rent would be: £75,000 x 3% = £2,250 per annum, paid monthly at £187.50.
Shared Ownership Resale
The term ‘resale’ applies to properties which have previously been purchased under Shared Ownership and where the existing owner is now moving home. Quite simply, the existing share is purchased by the new shared owner.
By definition the properties are second-hand. Resale properties will vary in terms of location, age, size and design and will often provide an opportunity to buy an older property in an established community.
The subsidised rent is initially capped at a maximum of 3% and is calculated on the share of the property retained by the housing association.
The scheme allows for shares of between 25%-75% to be purchased in a property and a subsidised rent to be paid on the balance.
The precise share purchased depends on an individual’s level of affordability and the ability to raise a suitable mortgage.
For example on a property valued at £150,000 bought on a 50% share the initial rent would be: £75,000 x 3% = £2,250 per annum, paid monthly at £187.50.
