Navigating Shared Ownership: Tips for getting good financial advice and help
Embarking on the journey of homeownership can be both exciting and daunting. Shared Ownership offers a flexible path to having a place to call your own but navigating the financial complexities can be challenging. At Southern Housing New Homes, we're committed to supporting you every step of the way, whether via our library of buying guides, informative blogs or friendly personal assistance.
Understanding Shared Ownership
Shared Ownership is a government-backed homeownership initiative that allows you to purchase a share of a home and pay rent on the remaining share. This makes homeownership more accessible for first-time buyers and those on lower incomes.
Here's how it works:
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Purchase a share: You buy a share of your chosen home, typically between 25% and 75%. The initial deposit required is usually 5% or 10% of the share price you’re buying meaning it’s lower than a deposit for the full market value of the whole home.
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Pay rent: You pay subsidised rent on the remaining share you don't own.
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Staircasing: Over time, you can gradually buy additional shares in your home, if you want to, known as staircasing. This allows you to increase your ownership stake and reduce your monthly rental payments.
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Full ownership: Eventually, you may be able to buy the remaining share of your home, becoming a full homeowner! It’s important to remember though that most Shared Ownership homes will still be lease hold even when owning 100% of the shares.
The Importance of Financial Advice
Seeking expert financial advice is crucial when considering Shared Ownership. A qualified financial advisor can help you:
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Assess your affordability and determine how much you can realistically borrow.
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Understand the long-term costs of buying additional shares and paying rent.
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Explore mortgage options and compare interest rates.
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Develop a financial plan to achieve your homeownership goals.
Where to Seek Financial Advice
Citizens Advice offers free, impartial advice on a range of financial matters, including Shared Ownership. Their experienced advisors can provide guidance on budgeting, debt, and other financial concerns.
MoneyHelper is a government-backed website that offers free, impartial money advice. You can find information on a range of topics, including mortgages, budgeting, and saving money.
Independent Financial Advisors (IFAs) can provide personalised financial advice tailored to your specific needs, and we can help to point you in the right direction to IFAs who specialise in Shared Ownership. It's important to choose a reputable IFA who is authorised and regulated by the Financial Conduct Authority (FCA).
Southern Housing New Home: Your Partner in Homeownership
We’re dedicated to helping you achieve your homeownership dreams. Our team can provide you with valuable information and support, including:
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Understanding Shared Ownership: We'll explain the ins and outs of Shared Ownership, making the process clear and straightforward.
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Finding the Right Home: We'll help you find a home that suits your needs and budget.
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Navigating the Buying Process: We'll guide you through the entire buying process, from making an offer to completing the sale.
By working closely with us, you can put your mind at ease and enjoy the exciting home buying process.
Start Your Homeownership Journey Today
Don't miss out on the opportunity to find a place to call your own. Contact our team today to arrange a viewing, discuss your options, and take the first step towards a brighter future in your dream new home.