Introduced following the credit crunch, as a government initiative, Shared Ownership has become a popular scheme to guide applicants towards homeownership.
Aimed primarily at first time buyers in Nottingham experiencing difficulty in entering the property market, the scheme provides a more achievable path to owning a property. This article explores the fundamental principles of this scheme and the qualifying criteria you need to meet.
How does Shared Ownership work in Nottingham?
As hinted in the name, you don’t own a property outright with Shared Ownership. The scheme enables you to acquire a certain portion of the property, typically between 25% and 75%. You’ll then pay rent on the remaining portion owned by the housing association.
The scheme allows individuals to own a home in a manageable way compared to taking out a mortgage on 100% of a property.
Can I increase my percentage share in the property?
Yes, it’s often possible to increase your share in a Shared Ownership property in Nottingham through a process known as “staircasing.”
Staircasing allows you to buy additional shares in your home, gradually increasing your ownership percentage over time. This can be a beneficial option for customers who wish to own a larger portion of their property, potentially leading to reduced rent payments on the remaining share.
However, it’s important to note that the specifics of staircasing can vary depending on your housing association or shared ownership provider, so it’s advisable to discuss your options with them directly to understand the process and any associated costs involved.
Who can qualify for the Shared Ownership Scheme?
To qualify for the Shared Ownership scheme, the first requirement is that your annual household income should be less than £80,000.
At the time of applying for the scheme, you shouldn’t own any other property. The scheme is most commonly used by first time buyers, but home movers can access it too.
You must have a good financial record, this means that no mortgage or rent payments have been missed, and a positive credit history is maintained.
Moreover, you have to demonstrate the ability to meet the costs that come with Shared Ownership in Nottingham, ensuring that you will be capable of meeting the financial commitments that come with this homeownership route.
Am I able to sell the property?
If you ever get to the point where you own 100% of the property, you attain the right to sell your property.
However, if you do not own 100% of the property the housing association retains the first refusal rights. It’s only after you own the property that you become free to sell the property to any prospective buyer as you deem fit.
Free Mortgage Appointment in Nottingham
As a mortgage broker in Nottingham, we specialise in helping applicants with their Shared Ownership mortgage in Nottingham.
Our expert mortgage advisors in Nottingham are available 7 days a week to help answer all of your Shared Ownership questions. Whether you’re a first time buyer or looking at moving home in Nottingham, we’re equipped to offer the necessary support.
Book your free mortgage appointment online today or give us a call to discuss your mortgage options in Nottingham. We’ll aim to understand your specific circumstances before offering tailored advice on how to best achieve your homeownership goals within the bounds of your financial capability.
Date Last Edited: September 16, 2024
