More and more people are choosing Shared Ownership to purchase their first home. However, after moving in, many tend to forget about the option of buying additional shares of their property. This often happens after they've settled into their new home and routine.
Some people opt for Shared Ownership because it offers a more affordable alternative to outright buying in the private market. Initially, not everyone might have the means to purchase the maximum share. However, circumstances can change over time. Improved job prospects, increased income, debt clearance, or sudden availability of funds can lead to the possibility of purchasing more shares in their home.
Buying more shares presents several advantages. One of these is the potential reduction in monthly rent. By owning a larger portion of the property, the rent can be significantly lowered, as it's calculated based only on the portion that isn't owned.
When you acquire more shares, your monthly rent can decrease. The rent is determined by the portion of the house that you don't own. Therefore, owning a greater share of the property results in a lower monthly rent payments. It's not mandatory to purchase more shares all at once. Often, you can secure better deals with lenders by assessing your financial situation and considering the economic climate. Occasionally, you might even be able to mortgage to increase ownership of the property, subsequently leading to reduced monthly rent.
Due to the growing popularity of Shared Ownership, banks now offer specialised mortgages tailored to this type of home buying. Smaller financial firms are also stepping in to assist those interested in Shared Ownership.
Remember, every individual's situation is unique. Seeking advice from a financial and mortgage advisor is recommended. If you're a homeowner with SO Resi, our partner Just Mortgages provides free advice. They can guide you in determining whether purchasing more shares or modifying your mortgage aligns better with your needs.
For free advice from Just Mortgages, you can reach out using this link: https://initialenquiryform.paperform.co/.
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Written by the SO Resi In-House Team