So, you’ve started looking into Shared Ownership. Maybe you’ve even told a few family members and friends that you’re considering getting on the property ladder through the scheme.
While we hope your announcement was met with optimism and excitement, we’re also very aware of several misconceptions. You might have heard statements like…
“It’s more expensive than renting!”
“You don’t really own the property!”
“It will be hard to sell if you want to move on!”
These kinds of rumours are enough to make anyone feel nervous, but they’re just that: rumours.
Despite what you may hear, Shared Ownership is a brilliant idea for many first-time buyers and movers.
To help you better understand it, we debunk the most common pieces of misinformation below.
What is Shared Ownership?
Before we start dispelling the myths, let’s recap what Shared Ownership means.
Essentially, it is a scheme where you purchase a share of a property (between 25% and 75%) and pay rent on the remaining share. You can buy your share by taking out a mortgage or using your savings. You’ll typically need to pay a 5% deposit of your share value too.
For people keen to get on the property ladder, this is a much more affordable alternative than buying a house outright. It’s proven especially popular over the last few years as property prices have surged and the cost of living has increased.
Four myths to stop believing
There’s a lot to love about Shared Ownership, so don’t let rumours and whispers on the grapevine hinder your property goals. Here are the myths to stop believing:
Myth: Not many people are eligible
There are some eligibility requirements to buy through the scheme, but it is still relatively accessible. Here is an overview of the requirements:
- You must be 18 years old or older.
- Your annual household income must be less than £80,000 outside of London and less than £90,000 in London.
- You cannot own another property. This means the scheme is particularly suitable for first-time buyers. If you are selling your property or previously owned a home that is now sold, you are also eligible.
As you can see, many people in the UK are suitable. It is designed to make getting on the property ladder more affordable!
Myth: Shared Ownership is more expensive than renting
One of the most significant benefits is that it’s cheaper than the cost of privately renting or paying off an entire mortgage. This is because the monthly rent payments are typically below market value.
Plus, your mortgage will be much smaller because you only own a share of the property. You also stand to gain from property price increases in the long run. If the property price goes up while you hold a percentage, the portion of the property you own will also increase.
Myth: You have to buy more shares as time goes on
You are under no obligation to buy more shares in the property unless you want to. Your lease will contain terms that explain how long you will need to own a percentage of the property before buying additional shares. This period is typically one to two years.
Myth: Shared ownership makes buying more complicated
While buying a property can certainly be daunting, purchasing a property in this way shouldn’t be more, or less, complex than buying a house outright. The most vital thing is to ensure you have the proper support. That’s where we come in.
Empowering you on your property journey
At PLS Solicitors, we wholeheartedly believe that Shared Ownership is a fantastic, affordable way to get on the property ladder. We untangle the complexities of this scheme for our customers, using our expertise and knowledge to make your journey towards buying a home stress-free and enjoyable.
We have a dedicated team of friendly, experienced solicitors specialising in Shared Ownership. With decades of experience, combined with the latest technology, we can accelerate your journey onto the property ladder.
Here are some of the benefits of choosing us:
- Dedicated, personalised support: We’ll assign you a dedicated Client Relationship Manager – your ‘PLS Buddy’ – who will help you understand all the legal documentation and assist you in meeting paperwork deadlines. Plus, your PLS Buddy will be happy to support you if you have any additional questions!
- 24/7 customer service: You’ll get 24/7 access to the PLS Portal, an easy-to-use application and website that gives you the latest status updates on your case. The PLS Portal also makes it quick and easy to exchange documents digitally.
- Speak to us through Alexa: You don’t even need to log on to a laptop or smartphone to see how the process is going. Why not speak to us through Amazon Alexa for the latest updates.
Ready to climb the property ladder? Contact us today.