Shared Ownership Myth Busting
There are plenty of misconceptions when it comes to buying a Shared Ownership home, so we’re here to set the record straight with some of the common myths.
You’re not allowed to decorate
We all love to get involved in DIY every once in a while, and living in a Shared Ownership home shouldn’t hold you back. The majority of Shared Ownership leases allow tenants to make the changes required to make a house feel like a home. Tenants are allowed to complete any of the standard tasks when it comes to home decorating; painting, hanging art, etc. Although if you’re looking to make any major changes to your property such as structural improvements then you may need to consult your lease agreement.
It means sharing your home with other people
This could not be further from the truth! Shared Ownership gets its name from the fact that buyers will own a share of the property (anywhere between 25%-75%) and the rest will be owned by the developer. So, no need to worry about nocturnal housemates who aren’t pulling their weight.
It’s more expensive than owning a home outright
This is not always the case, when buying a Shared Ownership property, your payments for living in the home will be broken into two parts. Firstly, you will be paying mortgage payments on the share of the house that you do own (which typically would be less than if you owned the property outright), and secondly the rent on the share of the home that you don’t own. Both amounts are dependent on how much you own of the property.
The Shared Ownership scheme is only for first-time buyers
Whilst the shared ownership scheme was originally designed for first-time buyer to help them get onto the property ladder there is nothing stopping someone who has previously owned a home using the scheme. Although, if you are looking to purchase a Shared Ownership home, you must have either sold your home or have proof that you are well into the process of selling it before you can be considered.
You can’t buy more shares in your home
This is certainly not true; we encourage our buyers to take part in the process known as ‘staircasing’. This is where a buyer can buy additional shares in their home over time. When are ready to buy more shares in your home, your home is re-valued and you buy the shares at the current market value, at the time you are buying the shares. You can usually staircase up to 100%, please check your lease for any restrictions.
Are you looking for a stylish and modern home in London or the South East?
Southern Home Ownership provides stylish, high quality and contemporary new homes, for sale on a Shared Ownership basis in a number of great locations such as Brighton, East London and Surrey. If you're a first-time buyer and interested in purchasing a property through Shared Ownership in London or the South East, then take a look at our collection of developments.