Posted by: Property Booking
04 Dec 2018
Shared ownership is a great way to get onto the property ladder and while you not only pay a smaller deposit, you can also buy more of the property as you save. With a variation of homes and the option to initially buy between 25-75%, you can find something that’s right for you and your finances, while ensuring you save in order to own more of the home over time. With significantly affordable rent compared to the amount charged by private landlords, you are in the position to put away a little more every month to save up for a bigger share of the property. This is thanks to non-profit housing associations that will own the remaining portion of your home are dedicated to providing affordable accommodation all over the UK.
Purchasing more shares of your property is called staircasing and comes with a whole host of benefits that will promise you to get the most out of your shared ownership. Whereas you may start out with owning just 25% of your home you can increase this to 100% on certain properties at a rate that suits you. You can do this by obtaining a valuation of your property and then request to increase your ownership with your housing association. Shares can be purchased in 10% increments and you can apply for a new mortgage that includes the new portion you have staircased and the amount you have left to pay off from your initial loan. It is a simple process and will allow you to move further up the property ladder without moving anywhere at all. This strategy is a highly beneficial way to take advantage of the property market and make a profit on your home should you decide to sell.
Once you have staircased up to 100% of the property you are free to make any renovations or extensions to your property dependent on the housing association. You can also keep all the profits from any improvements you make to your home when you sell it on, helping you to make the most out of your investment. In addition to this, you will also be free to choose your own estate agent to sell on your property and have full control over any choices in the process.
So, whether you are looking to own 100% of your property within the next five years, or you are simply looking to buy a share in a property and start from there, shared ownership is an opportunity that provides far more than just affordable housing. With a whole variety of city apartments, newly built townhouses and larger homes in the suburbs, you can find the perfect place while making a rewarding life investment. So, take advantage of the schemes out there and begin your journey as a homeowner.