At SO Resi, we think that shared ownership can be a great way to take that first step onto the property ladder. However, we also know that it can be misunderstood. So, we’ve addressed some of those common shared ownership misconceptions to bust any myths:
Myth: ‘Shared ownership means that I have to share my house with someone’
Fact: You don’t have to share your home with anyone (unless you want to, of course!). It is called shared ownership because the ownership of the property is shared between you and your housing association. You own a share of the property (typically between 25 and 75 per cent). If and when your funds allow you, you can increase your share until you fully own the property.
Myth: ‘Shared ownership is only available for first time buyers’
Fact: Shared ownership properties might be a great option for first-timers but the scheme is open to all different types of homebuyers. As long as you meet the criteria, you will be eligible for the scheme.
Not sure if you’re eligible for a SO Resi shared ownership home? Take a look at our requirements.
Myth: ‘It’s hard to get a mortgage for a shared ownership home’
Fact: Getting a mortgage for a shared ownership home is no harder than it is for any other home. The options are calculated on the same affordability criteria and are just as competitively priced. While there might be less products available for a shared ownership mortgage than a traditional one, there are more and more lenders offering options as the scheme becomes more and more popular.
Myth: ‘With shared ownership you never actually own the home’
Fact: With SO Resi you can ‘staircase’. This means you can buy more shares of your property as time and money allows you - eventually owning 100% of the property if you wish to.
We’re also the only organisation to offer SO Resi Plus, a scheme we designed to allow our homebuyers to purchase an additional one per cent share a year, at a pre-arranged price, for up to 15 years. Once set up, there’s nothing further to do and you save legal costs.
Myth: ‘You can’t decorate your home because you’re still renting’
Fact: When it comes to simply decorating a shared ownership home, renting rules don’t apply. You are free to paint it and decorate it however you like!
You do however need to consult us if you wish to do any major work – such as changing the electrics - or extend your property as you will need permission.
Myth: ‘Shared ownership is more expensive than renting’
Fact: In many cases shared ownership can be less expensive than renting a home.
For example, if you purchased a 25 per cent share (£60,000) of a one-bedroom apartment at SO Resi Times Square in Welwyn Garden City, with a £3,000 percent deposit, your monthly cost (including mortgage, rent and service charge) could be just £776 – compared to the average of £856* for a one-bedroom home in the same area.
If you’re unsure about any of the terminology used around shared ownership, we’ve also got a jargon buster to de-fog any confusion! And why not take a look at our latest blogs for the latest interior trends and our favourite first time buyer hotspots. You can also stay tuned by following as on Instagram, Facebook and Twitter.
*According to Home.co.uk https://www.home.co.uk/for_rent/welwyn_garden_city/current_rents?location=welwyn_garden_city