Part BUY part RENT or SHARED Home Ownership FAQs

Part buy part rent home ownership or shared ownership is designed to bridge the affordability gap for first-time buyers between the mortgage they can afford to raise and the cost of a property. You choose the property, buy an affordable share and pay a subsidised rent on the rest. In principle, you stand to save a substantial amount on rent and you can increase your share at any time by as much as 100%

This sounds too good to be true, what's the catch?

What is shared home ownership scheme?
The government runs a part buy part rent scheme called New Build HomeBuy
Flats or houses are sold as leasehold properties on shared ownership terms. The minimum share you can buy is 25%. You will need to be able raise a mortgage for the share you want to purchase, and you will pay rent on the share you don’t own. Rents are calculated to be affordable.
Can anyone qualify?
No. If you're a first time buyer, on a low income, living locally, but able to get a mortgage you would most likely be eligible. However their could be waiting lists for properties in your area.
How can I apply?
Shared ownership properties can be provided by housing associations, housing trusts and local authorities.
Is it fairly easy to get a shared ownership mortgage deal?
Up to 100% Shared Ownership Mortgages are available. Apply now for a quote and instant lending decision on your Shared Ownership Mortgage。
Can I take in a lodger or sublet my home for some extra income?
It's unlikely. You need to check your occupancy agreement or contact your housing association and mortgage lender.
Are there any restrictions when it comes to selling?
This will depend on your occupancy agreement, but generally you should be able to sell your share of your home back to the housing association or sell your home jointly with the housing association on the open market.
Who is responsible for repairs
A service charge will normally be payable to cover the cost of communal maintenance. These service charges can stay the same whatever %age you own of your home and continues to be payable if you buy your home outright.
Can I leave it as part of my estate in a will?
Good question, so get a solicitor to go over your occupancy agreement with a fine tooth comb before you sign!

posted by The Editor

Your Comments

Genesis Homes said...: If you're a first time buyer and have a household income of less than £60,000, chances are you can buy your first home in manageable, affordable stages. You can start by purchasing as little as 25pc and you can increase your share at any time, all the way to 100%; 3 April 2010 12:34