First time buyers: what is Help to Buy: Shared Ownership?

February 3rd 2017
By: Melanie Hollidge
First time buyers: what is Help to Buy: Shared Ownership?

If you are a first time buyer looking to get onto the property ladder then you will probably be aware of the Governments’ incentives to help first time buyers, but might be confused by some of the terms so here is a recap on how you could own a part share of a housing association property.

So what is Help to Buy or Shared Ownership?

If you can’t afford to pay for 100% of the cost of property that’s where Shared Ownership scheme can really help. Shared ownership properties are sold through registered social landlords and you will only need to take out a mortgage to cover your part of the investment amount, anything from between 25% and 75%.  The rest of the property will then be owned by a housing association, you will then pay rent on the remaining share, so if for example you bought a house for £160,000 and you owned £80,000, 50% and the housing association owned the rest you would then pay rent on £80,000 – Rent is generally calculated at 2.75% of the remaining equity per annum which is index linked in line with RPI, Retail Price Index. Shared ownership houses are always leasehold.

You could buy a home through Help to Buy: Shared Ownership in England if:

  • your household earns £80,000 a year or less outside London, or your household earns £90,000 a year or less in London
  • you are a first-time buyer, you used to own a home but can’t afford to buy one now or are an existing shared owner looking to move.

Goodfellows Land and New Homes has this Shared Ownership, modern two bed apartment situated on the second floor of the building. It features two medium sized bedrooms, a spacious lounge which is open plan to the kitchen area and in addition to the main bathroom the apartment also benefits from an en suite shower room. The property is located at the far end of the close with an allocated parking space behind.  Frenchlands Gate is also convenient for public transport as it is just 0.6 miles away from Horsley Station which provides a service to London Waterloo. Shared ownership £98,000.

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Buyers should ideally be living or working within the borough of Guildford and would need to be registered with Help To Buy and Guildford Home Choice.

Features include:

  • Shared Ownership
  • 25% Minimum Share available
  • Two Bed Apartment
  • En-suite Shower Room
  • Parking Space
  • 93 Lease Years Remaining

For further information or to log an interest please call Goodfellows Land and New Homes on 01372 745562 or follow this link.

Your property could be at risk if you do not keep up the mortgage repayments