All about: shared ownership mortgages

Shared ownership mortgages are those whereby the owners rent a share and purchase a share of the property. The majority of shared ownership houses are based on a 50/50% share, which would mean that a first time buyer could purchase a new property but would only need a mortgage for half. The other half would then be rented from a social or private landlord or a housing association. Under this arrangement, the landlord renting the other half of the property will be responsible for some of the maintenance of the property or repairs if they are required. This information will be provided about what the landlord is responsible for when you enquire about the property.

However, there are some eligibility criteria which have to be met if you are looking to purchase a shared ownership property. The first of these criteria is that your household income must be less than £60,000 per annum, or you could not otherwise afford to purchase a property in your area. Shared ownership properties are open to those who are existing social housing tenants (living in a council property), or if you are a first time buyer.

The shares of some properties on shared ownership schemes can range from 50% to 75% share, so if the latter, you would purchase 3/4 of the property and the remaining 1/4 would be rented from the landlord. There are also opportunities to begin your shared ownership at a 50% share when you move in, and then if your circumstances change, purchase a further share of the property.

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