What Is Shared Ownership?
Shared Ownership is a government-backed initiative that helps first time buyers get on the property ladder. The “Share” in Shared Ownership refers to the fact that buyers own a percentage of a home, typically from 25% to 35%, with the rest owned by the housing provider. The homeowner then pays a subsidised rent on the remainder of their share.
There are many advantages of Shared Ownership. For example, due to the fact that buyers only own a share of a property, a deposit and mortgage is only required for that share, and not the total purchase value – perfect for those with limited savings or no access to the bank of mum and dad.
Another advantage to Shared Ownership is that the monthly outlay is often cheaper than renting – especially in London and the South East. Furthermore, once you have purchased your property, you can gradually increase your share until you own 100% of your home – an option called ‘Staircasing’.
Another plus is that first time buyers are exempt from paying Stamp Duty if their Shared Ownership property is valued under £300,000, with a 5% tax rate applied to those priced between £300,000 - £500,000.
It’s often incorrectly assumed that Shared Ownership means that you are literally sharing a property with someone else. However, this couldn’t be further from the truth. In fact, many single buyers purchase Shared Ownership homes, and the scheme is also open to those buying with a partner, friend or family member.
Finally, all Shared Ownership homes are individually valued by an independent qualified surveyor from the Royal Institute of Chartered Surveyors (RICS), so you can rest assure that you’re paying a fair market price.
Are you looking for a stylish and modern home in London or the South East?
Southern Home Ownership is dedicated to providing stylish, high quality and contemporary new homes for sale through Shared Ownership in London and beyond.
If you're a first-time buyer and interested in owning a Shared Ownership property in London or the South East, then click on this link to take a look at our latest developments.