Rising property prices often make it challenging to step onto the property ladder. Fortunately, if you fit the shared ownership criteria, it provides an attractive option that makes buying a home more accessible.
It’s a Government scheme that allows you to buy a share of a property, so you won’t need to save such a big deposit. You then pay mortgage repayments on the part of the property that you are buying and subsidised rent on the part you don’t.
In this blog, we will explore the eligibility criteria for shared ownership properties in the UK, helping you to understand the opportunities available.
To qualify for shared ownership, your annual household income plays a crucial role. Typically, there is an upper limit on the total income to ensure the scheme remains accessible to those in need.
As shared ownership requires purchasing a share of the property and paying rent on the remaining portion, Homes England affordability assessments (HEC) are conducted by specialist mortgage brokers. This evaluation ensures that you can afford the regular payments associated with the home and the maximum share you could buy.
Whilst shared ownership is primarily designed to assist first-time buyers who may find it challenging to enter the property market, there are other groups that may be eligible. On some developments, there may be enhanced eligibility criteria that give priority to certain groups.
Shared ownership is suitable for:
While shared ownership schemes are open to individuals of various age groups, some properties may have age restrictions in place too. For instance, some developments cater specifically to older adults, providing suitable accommodation and communal facilities during retirement.
In some instances, you may have to demonstrate that you live and/or work in, or have a strong connection to the area where you want to buy a home.
As well as the shared ownership criteria mentioned above, you should also be aware of the following:
Getting onto the property ladder may seem out of reach, but shared ownership could be the answer to you buying your dream home in a more affordable way. By understanding the eligibility criteria outlined in this blog, you can evaluate your chances of qualifying for a property.
FIND OUT IF SHARED OWNERSHIP IS RIGHT FOR YOU
Shared ownership could open the door to your dream home. But is it the right move for you?
We can help you decide.