Shared ownership schemes are proving to be a popular option for first time buyers who would otherwise struggle to get onto the property ladder.
Shared ownership often applies to first time buyers, housing association or council house tenants or ‘key workers’ such as teachers and police officers, with an income below £60,000 a year.
North West law firm Stephensons Solicitors LLP, is reporting more demand for advice on shared ownership in the last six months.
Tom Bridge, managing partner of the firm’s Residential Property team, says: “Even people with large deposits and a sizeable income are finding it hard to raise the necessary finance to purchase a property in some areas of the country. That’s why, in the current climate, shared ownership is a realistic alternative to buying a property outright.
“Demand for our advice on this option has increased in the last six months, particularly via enquiries through our website.”
Shared ownership schemes are generally run by Housing Associations and registered social landlords. In most schemes, the buyer pays a reduced price by buying a percentage share of the property, with the remaining percentage retained by the Housing Association or social landlord. The buyer then pays rent on this share.
Tom adds: “Most schemes have an option for the purchaser to pay for an increased share of the property when their circumstances allow, ultimately buying their entire home over time.
“It is important to get independent legal and financial advice when considering entering a shared ownership scheme as they have quite complicated terms and conditions and only selected lenders will provide mortgages on these types of property.”
Stephensons Residential Property specialists have been helping people move home for 30 years. The team can offer online services including ‘Track My Case’ which allows clients to check the status of their move at any given time.
ENDS
Notes to editors
Stephensons undertakes all areas of residential conveyancing including sales, purchases and re-mortgages. The firm’s extensive residential property team acts for local private clients and those referred by local estate agents. For more information visit www.stephensons.co.uk.
Media information Lianne Tracey
Stephensons Solicitors LLP
T: 01616 966 229
E: lct@stephensons.co.uk