Shared ownership Essex is a government-backed initiative which helps individual, usually first time buyers to get onto the property ladder. Shared ownership allows individuals to purchase a share of a property in Essex and pay rent on the remaining share, this means they will own a percentage of the property. This is ideal for first-time buyers and those who are no longer able to purchase a property but have in the past, as they may aren’t able to purchase a home outright. Doing it this way they can purchase further shares of the property at a later date when they can afford to do so and this can result in them owning the whole property. There are certain requirements which will make you eligible for shared ownership and you must meet all if not most of these requirements. You need to be either a first time buyer or someone who has previously owned a property, although there are some other circumstances that are accepted depending on the situation, also you mustn’t be able to purchase a property which is suitable for your needs on the open market. You need to be a minimum of 18 years old, this is very important and your household income needs to be less than £60,000. Read more about Part Buy Part Rent Essex here.
Thanks to the HelptoBuy scheme, shared ownership means that you will have the chance to purchase more shares into the property in the future. You are able to purchase as little as a 10% share per transaction, the only problem with this is that with most housing associations you’re normally limited to three transactions, this means that if you want to you must achieve 100% ownership within your three transactions. Each share you buy will be bought at the current market value. With each share that you purchase, the rent that you have to pay will decrease according to the new percentage owned. Once you reach 100% ownership, you will no longer have to pay any rent on the property. Paying for your rent and mortgage could even work out to be cheaper than purchasing a property. This is why it’s important that you to spend time working out different costs before making a decision, an independent mortgage advisor could help you with this. When you are working out calculations and costs of this, make sure that you pay attention to other costs which will be included for example the deposit for your mortgage and legal fees. You will have to sort your mortgage with a high street lender. The process is made up of three easy steps. The first step is to register your interest with a housing association; this is so that they can mail you homes which are have recently come available and are what you’re looking for. Then you would go on to view the property. Then the final step is to appoint a solicitor so that you can arrange a mortgage,
You will have to sort your mortgage with a high street lender. The process is made up of three easy steps. The first step is to register your interest with a housing association; this is so that they can mail you homes which are have recently come available and are what you’re looking for. Then you would go on to view the property. Then the final step is to appoint a solicitor so that you can arrange a mortgage, however if you’re renting at this time you will be notified of the tenancy start date.