Are you already fed up paying the mortgage of your landlord? Or perhaps planning to buy a home but you cannot afford? Then shared ownership can be the best answer! Shared ownership is called part rent/part buy. This allows you to purchase a particular share of the new build property that you can own it outright and live in.
Through shared ownership, you can avail the property at the lesser price. So, stop throwing a lot of money that you waste on renting. See a financial investment return through shared ownership!
The program in the government of UK manages lots of shared ownership ideas and this refers as HomeBuy and also called as shared equity.
The basics of shared ownership
Before getting started with shared ownership and getting your foot towards the door, have a glance at the initiative offer of the government first. Find out how they can help you to become a potential homeowner.
Why does the Government provide inexpensive housing?
This is because the price of the UK homes continues to go up especially in main metropolitan centers such as London, Edinburgh, and Newcastle. The most important people that contribute to the infrastructure of the workplace in the UK are lower-paid professionals such as firemen, nurses, and teachers. These low-paid workers cannot afford to buy a home.
This means that the earnings of millions of young professionals were out paced by the ever increasing cost of housing market. To ease the situation and help workers not to be driven away from their preferred places to reside and from their jobs, the government made an effort to help them. The Government introduced affordable housing ideas to help these individuals buy homes. These housing ideas are administered by the national government agency known as “The Housing Corporation” that works in concurrence with other housing associations.
What is Housing Corporation?
This was introduced by the government of the UK in the year 1964. This housing corporation makes sure that there are enough affordable homes being produced for the people at a high quality. Those housing associations that are registered only can get the funding. Once it is registered with the management, the financial performance is being monitored for excellent assurance.
What is a Housing Association?
These are nonprofit organizations that are set up to manage and give affordable housing for sale or for rent to all people who cannot afford. While most of the housing associations utilize the money of the government from the housing corporation just to give shelter, some people use their personal money. These housing associations in the UK are registered through Housing Corporation and also called registered social landlords.
Different Government Schemes are available
Usually, the schemes are recognized as HomeBuy and split into three initiatives such as;
• New Build HomeBuy
This is where you buy a certain percentage of the home from the housing association.
• Open Market HomeBuy
The government here provides low interest rate on loans in order to help people meet the cost of the home. The Open market HomeBuy depends on the government loan and not considered as shared ownership.
• Social HomeBuy
The tenants here are assisted in purchasing their preferred home by means of shared ownership with the assistance of the government loan. The Social HomeBuy is for pre-existing tenants only.
Who can avail for a HomeBuy Scheme?
The various schemes above have different criteria when it comes to eligibility. They focused on various sectors of the people. However, there are some overlapping incidents. They are targeted at individuals who are in need of homes but cannot afford to buy. The priority is particularly given to public tenant, workers, and those people on the waiting lists of housing associations.
How shared ownership works?
The New Build HomeBuy permits you to buy a percentage, which starts at 25% minimum of the property from the housing association. You can also arrange the mortgage to cover up the whole amount. In addition to the mortgage, you have to pay for the rent on the outstanding percentage. The New Build HomeBuy, is offered as brand new or newly renovated. These can be in the form of flats or houses.
Through shared ownership, home is not a problem anymore!