Shared ownership allows you to purchase a percentage of a property and pay a rent on the remaining percentage. Purchasing a lower percentage means a lower deposit is required and therefore shared ownership schemes can be perfect for first time buyers or keyworkers. The deposit needed would be around 10% if you are buying 25% of a property. You would therefore need 10% of the 25% price. So for example, if you were purchasing 25% of a £400,000 property that would be £100,000 equity you would own and therefore around a £10,000 deposit would be needed.
The majority of shared ownership schemes allow you to purchase anything from 25% to 75% to start. This also means that getting a mortgage to cover this cost could be easier. You then of course will be able to purchase the remaining percentage over a period of time.
Shared ownership has been designed to help those with less financial backing buy a home and therefore not everyone is eligible.
Contact us today for more information on how to find a deal that will suit your needs.