Pros and Cons of Shared Ownership

Shared Ownership is a popular house buying process for many, however there are considerations to weigh-up before committing.

Pros of Shared Ownership

• Generally a smaller deposit is required meaning you can buy your new home faster.
• Great option if you are on a lower income.
• You can buy more shares, when you can afford it.
• And sell the ones you already own at any time.
• Your monthly payments are usually lower than renting privately.
• Some houses can become freehold once you staircase to 100%
• You are free to decorate internally.
• If the property value increases, so will the value of your shares.

Cons of Shared Ownership

• All properties sold through Shared ownership are leasehold.
• You have to pay a 100% of the service charge and ground rent, however low your share is.
• If you want to sell your property, it may need to be via the housing association you purchased from.
• It costs extra to buy more shares.
• Not all lenders offer mortgages to Shared ownership properties.
• There are restrictions to any structural alterations. You will require permission from the housing provider.
• You are responsible for all repairs and maintenance costs.
• You will pay Stamp Duty on the whole property when you own share of 80% or more.

Think Shared ownership is right for you? Start the search for your dream home here.