Shared Ownership London

Shared ownership – A smart way to share the burden of a mortgage

Shared ownership has always been a lucrative and strong platform for homebuyers to enjoy the feel of homeownership. There are numerous shared ownership properties in London, Bristol, Birmingham, Edinburgh, Glasgow, in short, all over the UK. However, most of the borrowers face issues because they are not aware of the loan procedures. Shine Mortgages, the online mortgage broker appears here to play its part. We bring you the deals and the options of the lenders that offer mortgage for shared ownership. Also, we take care of the documentation part and bargain to get you the lowest rate.

What is shared ownership?

Shared ownership is the method of home buying in which you buy a certain percentage of a house, and the rest of the percentage remains under the ownership of housing association. For the part that is owned by the association, you pay rent.

An example can explain the concept well –

You purchased 60% ownership of a house, and the association owns 40%. Now, after the buying formalities, you can stay in the purchased home, but for the 40% of the property that is owned by the housing company, you will pay rent. Do not worry; the rent is always affordable. In short, you pay mortgage instalments for the part you own and also the rent.

How do you qualify for shared ownership?

The following terms and conditions are necessary to fulfil to qualify for shared ownership –

• You need to be the first-time buyer
• You owned a home, but now you cannot buy one.
• Your annual income should not be equal to £80,000 or less than that
• There should be no criminal background against you

Note – Shine Mortgages helps you in case you have a pending judgment in case of a criminal case because until you are not proven guilty, we have ways to help you in home buying. Our team of legal matters suggests the rational methods of applying for the mortgage through shared ownership.

How does shared ownership work?

Shared ownership mainly aims to help people who do have a high income, but they want to have their home. The buyer can buy a particular share in the property and can buy the rest of the part later. Usually, the percentage a buyer buys is smaller as the less financially efficient people purchase through shared ownership. Through this method usually, new properties are sold, but in some cases, the housing associations also sell existing properties. The shared ownership properties are leasehold always.

Special privilege to older people

For older people, the shared ownership scheme gives a particular facility.

If the applicant is 55 years old, he/she can buy up to 75% of the house, and for the rest of the part, he does not need to pay any rent. This privilege is given through the Older People’s Shared Ownership (OPSO) scheme.

Special privilege to disabled people

The homeownership for people with a long-term disability (HOLD) allows you to apply for a specific type of property. For instance – if you want to buy a property on the ground floor, you can apply through this scheme. You can even claim to buy 75% of the purchased house.

How does the application process work?

The application process is precise and not complicated. Shine Mortgages makes it easier for you through our assistance throughout the procedure.

• Speak to your housing department of your council to find out the availability of shared ownership properties in your locality.
• Judge yourself on the eligibility parameter. We help you in that scrutiny to figure out a practical solution.
• Once your eligibility proves positive, we find you the lenders that deal in mortgage for shared ownership.
• The lender takes you through the affordability test, and we help you understand the technicalities to get approval.
• Depending on the mortgage provider policies and your financial conditions, you will need to provide a deposit.
• You will need to pay varied fee and charges such as – mortgage fee, stamp duty, moving costs, insurance, maintenance and repair.

Shine Mortgage can help to find scheme backed flats in your city or locality such as to find shared ownership London flats we invest all our resources to support you.

Did you know? You own a certain percentage in the property, but you need to pay the maintenance cost for the complete house.

Staircasing to buy a more significant share of the house after you own it - How does that happen?

Once you buy the property and become the owner, you can buy a more significant share than you currently own. But some specific terms and conditions apply in that case.

• The cost of the rest of the percentage can be higher than the one you own if the property prices have gone up.
• The cost of the rest of the percentage can be lower than the existing percentage if the property prices go up.
• The housing association does a property valuation and tells you the latest price after which the process takes place.

Can you resale your property after buying it?

Yes, you can do that but only after you purchase the 100% of your property. Until you do not own the complete property, it is certainly not possible to sell the house; in fact, you cannot sell even your part. After all, the rest of the share is under the authority of the housing association. Any effort of sale of the house without owning the complete property is the breach of the law, and it invites immediate punishment. Different councils have slightly different rules on the shared ownership resale. You need to confirm the formalities first before making any move in the direction. Here also Shine Mortgages can help you with a rational and instant guide.

How does shared ownership work in London?

The procedure is more or less same, but it is better to have a look at the precise process in London for shared ownership–

• Find properties in your specific location, for instance, find houses for shared ownership in east London
• Find out the deposit amount required for the property you have picked
• Register for property viewing through a housing association
• You need to give a deposit fee of £200. This may change with time and property market conditions.
• Appoint a solicitor to tackle the legal part
• Find a mortgage deal to buy your share of the property. Shine Mortgages will do that for you in a few minutes through instant quotes
• Your application procedure starts, and we take off all the formalities and procedures.

Shine Mortgages takes you through the journey of shared ownership home buying smoothly. Without letting you feel the stress, we manage all the stress and mess. We have no broker fee, no hidden charges; we are completely transparent and keep updated our customers through timely notifications.