Shared Ownership Mortgages

Shared Ownership Mortgages

Shared ownership mortgage schemes are a Government incentive backed up by developers and housing associations. They are designed to provide highly quality affordable housing for first-time buyers and other key workers.

How do shared ownership mortgages work?

The way a shared ownership mortgage works is property buyers 'share' ownership of the property. On the initial purchase, you will usually buy 25/50/75% of the total value of the property. The remaining 75/50/25% of the property is owned jointly, generally with a housing association. They then charge you 'rent' for the portion you do not own.
If you want to know more about shared ownership mortgages, give us a call.

What are the benefits of a shared ownership mortgage?

One of the main benefits of getting a shared ownership mortgage is that they are a more affordable way to get a foothold on the housing ladder. Another benefit is that not only do you get to live in a house that you part own, but you also benefit from the increase in the value of your 'share'.

Shared ownership schemes are unique in that you can gradually 'staircase' up your ownership of the property. Staircasing means you can purchase additional sections of the property at a later date. For example, you can start by buying 50% of the property initially, then after two years buy another 25%. Two years later, you finally purchase the last 25%, and now you own the entire property.

These schemes save you the cost of having to 'size up' during your working life. Your rent decreases each time you increase your ownership of the property to reflect your increased ownership.

How can Lifetime IFA Mortgage Services help with Shared Ownership mortgages?

Conditions vary from scheme to scheme, so it is essential you make sure you are happy with the terms of the scheme before you sign up. We can help you with this. As shared-ownership is a niche mortgage sector, not all mortgage lenders are willing to lend on these developments. As Lifetime IFA Mortgage Services is an independent brokerage, we can find the best lender for you by sourcing the entire market place.

Your home may be repossessed if you do not keep up repayments on your mortgage.

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