Shared Ownership is a government-backed initiative designed to make the journey to homeownership more accessible. With rising property prices and high rents, particularly in cities like London, Shared Ownership provides a practical pathway to owning a home in desirable locations that might otherwise be out of reach. The initiative's popularity has been growing, offering a viable alternative to renting by helping people to secure a place to call their own. 

Understanding Shared Ownership 

What’s Shared Ownership? 

Shared Ownership allows you to buy a share of a home (usually between 25% and 75%) and pay rent on the remaining share. Over time, you can purchase additional shares, a process known as "staircasing," which allows you to have the option to eventually own the place outright. This approach lowers the initial deposit and mortgage amount, meaning homeownership could be more affordable for those who find saving a large deposit challenging. 

How To Estimate Monthly Costs with Shared Ownership 

Estimating monthly costs involves calculating a combination of mortgage payments, rent on the unsold share, and additional expenses like service charges and maintenance fees. Here’s a breakdown of how you can figure out your estimated monthly costs: 

Mortgage: 

Your monthly mortgage payment depends on the share you purchase. Typically, you’ll need to secure a mortgage for 25% to 75% of the home's value.  

Rent: 

Rent is paid on the share of the home you don’t own. The amount varies but is generally lower than full market rent. For example, if you purchase a 25% share of a 2 bedroom home at Arcadia View valued at £550,000 your estimated monthly rent would be £946pcm. According to home.co.uk the average rent for a 2 bedroom property in Clapton is £2,350pcm. 

Service Charge: 

Monthly fees cover maintenance of communal areas and services. 

Maintenance Costs and Bills: 

As with any home, you’ll need to factor in ongoing maintenance, utility bills, and council tax. 

Deposit Percentage: 

Shared Ownership requires a smaller deposit than traditional purchases, usually 5% or 10% of the share you’re buying. 

For example, if you’re looking at a 50% share in a £400,000 home, you might only need a 5% deposit on your share (£10,000). You’ll pay a mortgage on £200,000, plus rent on the remaining 50% share. 

Southern Housing New Homes provides detailed pricelists on each home, available on our website, which includes all essential cost breakdowns to help you plan your finances effectively. 

Benefits of Shared Ownership 

1. Lower Deposits: With Shared Ownership, the required deposit is only a percentage of the share you’re buying, significantly reducing upfront costs. 

2. Shared Ownership opens up opportunities to live in areas that may have otherwise been unaffordable. 

3. Option to Increase Ownership: Over time, you can buy more shares in your home, gradually moving towards owning 100% of the shares. 

Why Choose Southern Housing for Shared Ownership? 

Competitive Advantages 

Southern Housing New Homes is recognised for our extensive experience and dedication to helping individuals navigate the Shared Ownership process. The homes we showcase are in desirable areas, provided with high-quality finishes and integrated appliances. Each home is designed with comfort and convenience in mind, making it an excellent choice for anyone looking to settle in a location with great transport links, amenities, and vibrant local communities.  

Future Developments 

Southern Housing’s range of homes is constantly expanding, with future projects planned in areas such as Southwark, Kent, and West London. These developments aim to cater to those looking for modern living spaces in well-connected areas. Keep an eye out for these upcoming homes if you’re considering moving to a new neighbourhood.  

Ready to take the next step? Get in touch with our team today to find out how you can start your journey towards homeownership with the Shared Ownership initiative.