Shared Ownership

I don't have enough money to buy. How can I get on the property ladder?

If you don't have enough money to buy, then it's possible to get on the property ladder by either teaming up with someone else and buying a home with them, or if you feel you can't do that, apply for a shared ownership's game. This is where a housing association or the government lends you the extra money you need to complete the sell.

What is shared ownership?

Shared ownership is when you can't afford to borrow all the money that you need to buy a certain property, so you team up with a housing association or the government, who agrees to buy the rest of that property. You then own a share, and they own a share. You take your share of the value, and they take their share of the value, if you come to sell.

What is a housing association?

A housing association is a not-for -profit organization that is set up in a certain area in order to help people get onto the property ladder, and works with the local authority in order to provide housing for those who can't afford it.

What are the pros and cons of shared ownership?

The advantage of shared ownership is that it can help people who can't get onto the property ladder onto that ladder. The disadvantage of shared ownership is that if you buy a share in a home, when you come to sell, the person who owns the other share - for example the housing association - will take that proportion of the value.

What makes someone eligible for shared ownership?

To be eligible for shared ownership, you need to contact a housing association and ask them what their particular criteria are. These ownership criteria differ depending upon the housing association. It's likely that they will means test you for your income and your savings. Many people who don't think that they would qualify for shared ownership can be pleasantly surprised when they contact a housing association and they're told that they actually do.

If I sell my shared ownership property, how much money will I make?

If you sell your shared ownership home, the first thing that will happen is the shared ownership scheme will arrange for an independent evaluation to be done, which will work out how much your property is worth. When you then decide to sell it, it may be that you have to give the shared ownership scheme or the housing association first reviews on all that property, or it may be that you can sell it on the open market. Whatever happens, you will get the rise in value on your percentage of the home. So, if you own twenty-five percent of the home, then you will get the proportion of the rise in value in relation to that quarter, and the housing association will get their share, which is the other seventy-five percent.

Whats the Homebuy scheme?

The Homebuy scheme is a government initiative set up to help first time buyers. They can either share ownership with a housing association, they can part buy with the government's help on the open market, or they can use it to buy their own housing association home or council home.

What makes someone eligible to apply for Homebuy?

The best way to find out if you're eligible for the Homebuy scheme, is to speak to your local Housing Association, and they will be able to help you and tell you exactly what you need to do to qualify for it, in terms of earnings, savings, or where you want to live.

What is the Keyworker Living Programme?

The Keyworker Living Programme is an initiative set up in London, the South-East of England, and the East of England, where house prices are very high, to help keyworkers (public sector workers) either get on the property ladder, move up the property ladder to a larger family home or rent a home at an affordable price.

Who is the Keyworker Living Programme open to?

The Keyworker Living Programme is open to certain public sector employees. Keyworkers include NHS staff (but not doctors and dentists), police, teachers, firefighters, certain local authority staff, and some members of the Ministry of Defense.

Where can I find out more about the Keyworker Living Programme?

To find out more about the Keyworker Living Programme, you either need to go the Department of Communities website, run by the government, which is www.communities.gov.uk. Alternatively, speak to your local housing association about the Keyworker Programme.